Section 8 Fair Market Rent (FMR) for ZIP 48044 - 2027

Investment Score for ZIP 48044

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,180
1 Bedroom	$1,320
2 Bedrooms	$1,650
3 Bedrooms	$2,010
4 Bedrooms	$2,180
5 Bedrooms	$2,529
6 Bedrooms	$2,832
7 Bedrooms	$3,059
8 Bedrooms	$3,212

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,650	$255,635	0.65%	D
3BR	$2,010	$399,104	0.5%	F
4BR	$2,180	$514,179	0.42%	F
5BR	$2,529	$569,563	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48044 (Macomb, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48044 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1610, which represents 16.4% of the median household income of $117,856. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the local income levels. However, the actual rental market in Macomb, MI, is significantly higher. According to Zillow, the median price for a two-bedroom home is $254,177, which translates into a monthly mortgage payment of approximately $1,184 based on a 4.5% interest rate over a 30-year term. The price-to-FMR ratio of 13.2x suggests that the actual rental rates are much higher than the FMR. For voucher holders, this means that the maximum allowable rent under the Section 8 program is likely to be below the market rate. Specifically, a voucher holder would struggle to find a two-bedroom unit renting at $1610 per month, given the high market prices. This could lead to a limited pool of available units for voucher holders, potentially constraining their housing choices. #### Affordability & Renter Profile The population of Macomb, MI, is 58,754, with only 11.1% of residents being renters. This low percentage of renters suggests that the majority of the population owns their homes, indicating a strong preference for homeownership in the area. The occupancy rate of 98.5% further supports the idea that the rental market is tight, with very few vacant units available. Given the high median household income of $117,856, it is reasonable to assume that most renters in this area have above-average incomes, making them less reliant on government assistance programs like Section 8. The tight rental market combined with the high median income implies that the demand for rental properties is relatively low, but the competition among those who do rent is fierce. This situation makes it challenging for lower-income individuals, including those with Section 8 vouchers, to find suitable housing options within the voucher limits. #### Investor Angle From an investor perspective, the ZIP code 48044 presents a mixed picture. The FMR for a two-bedroom unit is $1610, but the actual market rent is likely much higher due to the high price-to-FMR ratio of 13.2x. If an investor were to purchase a two-bedroom property at the median price of $254,177 and aim to rent it out at the FMR, they would face significant cash flow challenges. The monthly mortgage payment alone would be around $1,184, leaving little room for profit when the rental rate is capped at $1610. However, if an investor can secure a property below the median price or finds a way to reduce the mortgage payment through alternative financing methods, there might be potential for positive cash flow. But given the current market conditions, it is unlikely that many properties will be available at such discounted rates. In terms of investment grade, the high price-to-FMR ratio and the tight rental market suggest that the investment risk is elevated. The primary challenge is finding tenants willing to pay the FMR when the market rent is so much higher. Therefore, the investment grade for this ZIP code is considered moderate to low, especially for investors focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on securing properties with lower-than-median prices. For example, a two-bedroom property priced at $200,000 would result in a monthly mortgage payment of approximately $900, allowing for a higher net cash flow when rented at the FMR of $1610. This strategy would help mitigate the financial strain caused by the high price-to-FMR ratio. 2. **Consider Multi-Family Units**: Given the high FMR for larger units, investors might consider purchasing multi-family properties where the individual units can be rented at different rates. For instance, a three-bedroom unit with an FMR of $1970 might be more feasible in a multi-unit building, as the overall cost of the property could be spread across multiple units. 3. **Diversify Tenant Base**: To ensure a steady stream of income, investors should diversify their tenant base beyond just Section 8 voucher holders. This could include offering units at slightly above FMR rates to non-voucher tenants who can afford higher rents. By doing so, investors can balance the lower rents required by voucher holders with the higher rents paid by other tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 48044 (Macomb, MI) presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **skip** this ZIP code unless you can find exceptionally low-priced properties or are willing to manage a diversified tenant base. The current market dynamics make it difficult to achieve positive cash flow strictly through Section 8 vouchers, and the competition for rental units is intense.

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.