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 | $960 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,770 |
| 5 Bedrooms | $2,053 |
| 6 Bedrooms | $2,299 |
| 7 Bedrooms | $2,483 |
| 8 Bedrooms | $2,607 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,340 | $191,685 | 0.7% | D |
| 3BR | $1,630 | $363,732 | 0.45% | F |
| 4BR | $1,770 | $442,606 | 0.4% | F |
| 5BR | $2,053 | $508,645 | 0.4% | F |
U.S. Census Bureau data (2024)
ZIP code 48047 is part of the suburban landscape of Chesterfield, Michigan, a neighborhood known for its comfortable living conditions and relatively low rental occupancy. With a total population of 40,302, only 18.5% of residents are renters, indicating a predominantly owner-occupied community. The median household income in this area stands at $94,890, reflecting a middle-class to upper-middle-class demographic. The median home value is significantly high at $340,341, which suggests that homeownership is both a financial commitment and a status symbol here.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 48047 in fiscal year 2024 is set at $1,190. This figure represents the government's benchmark for affordable housing and is specifically relevant for Section 8 investors. In contrast, the actual market rent, as measured by Zillow's ZORI index, is considerably higher at $1,558 per month. This gap between the FMR and market rent highlights a potential challenge for hands-off Section 8 operators, as it may be difficult to find properties that can be rented at the FMR without significant subsidy support. However, for hands-on investors looking to add value, there could be opportunities to improve property quality and still achieve rents closer to the market rate, thus maximizing returns while providing affordable housing options.
The low percentage of renters in the area indicates that attracting tenants might require more effort, such as offering amenities or services that appeal to a broader range of potential residents. For those interested in Section 8 investment, the high median home value also implies that purchasing properties in this ZIP code will likely come at a premium, necessitating a careful analysis of long-term profitability and risk management strategies. Overall, ZIP 48047 presents a scenario where hands-on value-add strategies may be more rewarding than a purely passive approach, given the economic dynamics at play.
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.