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 | $790 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $216,916 | 0.51% | F |
| 3BR | $1,340 | $354,825 | 0.38% | F |
| 4BR | $1,450 | $404,519 | 0.36% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 48041, located in Memphis, MI, within Saint Clair County, revolve around the Subsidized Average Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment, the SAFMR is set at $1100 per month for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay to cover the rental costs. However, the local market rent, according to the Census American Community Survey (ACS), averages at $938 per month.
A landlord participating in the Section 8 program receives a subsidy from the government to cover the difference between the tenant's contribution and the total rent. The tenant typically pays 30% of their adjusted income towards rent, which includes both the housing and utility allowances. If we assume an average household income eligible for the voucher, the tenant might contribute approximately $330 per month, based on a median income scenario.
The voucher program also provides a utility allowance, which can vary but is often around $150-$200 per month. This allowance is intended to help cover the cost of utilities such as electricity, water, and gas. Therefore, when calculating the total payment received by a landlord, you must add the tenant's portion and the utility allowance to the subsidy amount.
In ZIP 48041, the typical reimbursement for a landlord would be the SAFMR of $1100. Given the average local market rent of $938, landlords in this area may see a surplus if they charge the lower market rate. The surplus is calculated as follows:
$1100 (SAFMR) - $938 (Market Rent) = $162 surplus per month.
This means that landlords who participate in the Section 8 program and charge the average local market rent of $938 will receive an additional $162 beyond the market rate, effectively closing any gap and providing a financial buffer. It is important to note that the SAFMR is specifically set for this ZIP code, meaning it reflects the unique economic conditions of the area.
To summarize, landlords in ZIP 48041 should understand that the Section 8 voucher will cover up to $1100 per month for a two-bedroom unit, while the typical market rent is $938. By charging the market rate, landlords can ensure they receive a stable income and even a small surplus, making participation in the Section 8 program financially viable and beneficial.
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.