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 | $1,080 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,840 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $223,513 | 0.68% | D |
| 3BR | $1,840 | $298,466 | 0.62% | D |
| 4BR | $2,000 | $357,011 | 0.56% | F |
| 5BR | $2,320 | $371,633 | 0.62% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 48017 (Clawson, MI) on the axes of yield and stability reveals a nuanced market condition. On the yield axis, Clawson stands out with a Federal Market Rent (FMR) of $1,240 for the fiscal year 2024, which is notably lower than the local market rent of $1,828. This suggests a potential for higher-than-average rental yields if the property can be managed efficiently. However, the median home value in Clawson is $286,575, indicating that the capital investment required to enter this market is relatively high.
Moving to the stability axis, the data points towards a moderate level of stability. With 24.6% of the population being renters, the demand for rental properties is present but not overwhelming. The average household income in Clawson is $88,812, which provides a reasonable assurance that tenants can afford their rent payments. Unfortunately, the data does not provide an indication of the number of days on the market (DOM), which would have been useful in assessing the speed at which properties are typically leased or sold.
Given these figures, ZIP 48017 leans more towards a steady-cashflow zone. While the disparity between the FMR and market rent indicates a possibility for above-average returns, the relatively high home values and moderate renter population suggest that the market is not volatile enough to qualify as a high-yield/low-stability 'flip-style' market. Instead, the combination of decent rental yields and stable tenant incomes makes it a suitable location for those seeking consistent, reliable cash flow from their investments. Landlords and small-portfolio investors should expect solid, long-term returns rather than quick, high-risk gains.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.