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 | $930 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $170,136 | 0.76% | D |
| 3BR | $1,570 | $268,367 | 0.59% | F |
| 4BR | $1,710 | $372,703 | 0.46% | F |
U.S. Census Bureau data (2024)
A landlord considering Clinton Township, MI (ZIP 48036) for Section 8 investments must evaluate several key factors:
1) Does the Fair Market Rent (FMR) of $1120 cover the debt service on a property valued at $260,284?
No. The FMR of $1120 is insufficient to cover typical debt service costs. For a property priced at $260,284, the monthly mortgage payment alone would likely exceed this amount, making it difficult to rely solely on Section 8 income.
2) How does the market rent ($1,174 ZORI) compare to the FMR?
The market rent of $1,174 is slightly above the FMR of $1120, indicating that properties in this area might be able to command rents higher than the Section 8 rates. This suggests potential for market-rate tenancy, but it does not address the initial question of covering debt service.
3) Is there sufficient rental demand in Clinton Township, given that 29.5% of residents are renters and the days-on-market (DOM) data is not available?
It depends. With 29.5% of residents renting, there is a notable demand for rental properties. However, without DOM data, it's challenging to assess how quickly properties are leased. If the market is robust and properties are rented quickly, then the demand is likely strong enough to support investment.
To summarize, investing in Clinton Township, MI (ZIP 48036) for Section 8 purposes is not advisable based on the FMR alone. The market rent being slightly above the FMR offers some flexibility, but the primary concern remains the ability to cover debt service. Landlords should consider diversifying their portfolio with a mix of market-rate and Section 8 units, or seek areas where FMR more closely aligns with debt service requirements.
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.