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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $140,889 | 0.75% | D |
| 3BR | $1,280 | $245,272 | 0.52% | F |
| 4BR | $1,390 | $307,230 | 0.45% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 48026, located in Fraser, MI, within Macomb County and the Detroit-Warren-Livonia HUD Metro FMR area, reveals a favorable environment for cashflow. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1100, which is significantly higher than the Census ACS-reported market rent of $843. This means that voucher tenants will generate positive cashflow for landlords and small-portfolio investors.
To further understand the investment potential, consider the median home value in the area, which stands at $234,824. Using the HUD FMR of $1100, we can calculate a rent-to-price ratio of approximately 0.47%. This low ratio suggests that rental income can be a strong component of overall property value, making it an attractive option for investors looking to balance between rental income and potential property appreciation.
Despite the positive cashflow potential, the local real estate market shows a median Days on Market (DOM) of N/A, indicating that sales data may not be fully representative. Additionally, the share of homes that require a price cut is 0.2%, suggesting a relatively stable market with minimal pressure to reduce asking prices. These factors imply that while the market is conducive to cashflow, the dynamics also support stability and long-term holding strategies.
In conclusion, the strongest investor angle in ZIP 48026 is the robust cashflow potential due to the substantial gap between HUD FMR and market rents, making it an ideal location for landlords seeking steady income from Section 8 tenants.
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.