Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,610 | $402,822 | 0.4% | F |
| 4BR | $1,740 | $432,646 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 48005, with a population of 5,325, is characterized by a relatively low percentage of renters at 6.8%. This indicates that it is primarily a homeowner-dominated area rather than one heavily reliant on rental properties. The median household income in this area stands at $105,734, which provides a strong basis for understanding the economic capacity of potential tenants.
Market rents in this ZIP code average $1,053 per month. To put this into perspective, the typical rent constitutes approximately 1.2% of the median household income. This is calculated by taking the monthly rent ($1,053) and dividing it by the annual median household income ($105,734), then multiplying by 12 months. This figure suggests that renting is financially manageable for most residents given their income levels.
The Fair Market Rent (FMR) for the area is set at $1,200 per month for FY 2024, which is higher than the current market rent. This means that landlords could potentially increase their rental rates to align with the FMR without significantly impacting the affordability for tenants eligible for housing vouchers.
Given these income levels and the current market rent, landlords in ZIP 48005 can expect tenants who are likely to have stable employment and financial situations. These tenants may not solely rely on housing vouchers but might use them to supplement their rental payments. The scarcity of voucher demand in this area is reflected in the lower percentage of renters compared to homeowners, indicating that the majority of residents prefer or are able to own property.
In conclusion, while the ZIP code 48005 does have a modest renter base, it is not a hotbed for Section 8 voucher usage. Landlords should anticipate tenants with a decent income level, capable of covering a substantial portion of the rent, even if they are using some form of housing assistance. The current market rent is below the FMR, suggesting room for slight increases without compromising the ability of tenants to pay.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.