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 | $1,130 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,570 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $111,233 | 1.13% | B |
| 2BR | $1,570 | $137,669 | 1.14% | B |
| 3BR | $1,910 | $171,552 | 1.11% | B |
| 4BR | $2,080 | $188,953 | 1.1% | B |
| 5BR | $2,413 | $219,848 | 1.1% | B |
U.S. Census Bureau data (2024)
The rent math in ZIP 48030 (Hazel Park, MI) does not work favorably for landlords. The Fair Market Rent (FMR) set at $1340 for fiscal year 2024 is below the market rent, which stands at $1,515 according to ZORI (Zillow's Rent Index). This means that landlords relying solely on Section 8 vouchers will not be able to cover their market rental costs, leading to potential financial losses.
Acquisition in this area is relatively affordable. The median home value is $155,409, making it accessible for small-portfolio investors looking to enter the market. Additionally, the average days on market (DOM) is 20 days, indicating a quick turnover rate for properties, and only 0.2% of listings require a price cut, suggesting that homes generally sell close to their asking price.
Tenant demand is present but not overwhelming. With a total population of 14,963, Hazel Park has a significant renter base, accounting for 33.9% of the total population. This implies that nearly 5,075 residents are potential tenants, providing a reasonable pool of renters for landlords.
In summary, while the rent math does not favor landlords due to the disparity between FMR and market rent, the acquisition cost is manageable, and there is a sufficient tenant demand. Landlords should consider supplementing their income beyond just Section 8 vouchers to ensure profitability. Despite the challenges, the area offers an opportunity for those willing to diversify their rental income sources.
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.