Section 8 Fair Market Rent (FMR) for ZIP 48048 - 2027
Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
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 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$70,938
Housing Authorities Serving ZIP 48048
If you're considering purchasing a property in ZIP code 48048 (New Haven, MI) for Section 8 investment, follow this decision tree to make an informed choice.
Step 1: Does the Fair Market Rent (FMR) of $1430 cover the debt service on a property valued at $290,019?
- Yes: The FMR of $1430 must be sufficient to meet the monthly mortgage payment, including principal, interest, taxes, and insurance (PITI). To determine if this is possible, calculate the debt service based on the property value. Assuming a 30-year fixed-rate mortgage at 4%, the monthly mortgage payment would be approximately $1,380. This does not include property taxes and insurance, which can vary but are typically around $200-$300 combined per month. Therefore, the FMR of $1430 would barely cover these expenses. Proceed to Step 2.
- No: If the FMR does not cover the debt service, investing in this area for Section 8 is not financially viable. The FMR is too low relative to the cost of servicing the debt on a $290,019 property.
Step 2: Is the market rent of $1,364 above, at, or below the FMR?
- Above: If the market rent were higher than the FMR, it would indicate that Section 8 properties might struggle to compete with market rates. However, since the market rent is $1,364, it is slightly below the FMR of $1430. This means that Section 8 tenants could potentially afford market rates, offering some flexibility in pricing. Proceed to Step 3.
- At or Below: Since the market rent is at or below the FMR, Section 8 properties are likely to be competitive in this market. This supports the viability of Section 8 investments in New Haven, MI.
Step 3: Are the 21.3% renters and the N/A-day days on market (DOM) enough demand for Section 8 properties?
- It Depends: With 21.3% of residents being renters, there is a moderate level of rental demand. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out. A high DOM could indicate a slow-moving market, which would affect the feasibility of a Section 8 investment. If additional research shows that DOM is relatively low, indicating quick turnover, then the demand is sufficient. Otherwise, consider other areas with more robust rental activity.
In conclusion, the ZIP code 48048 presents a marginally viable opportunity for Section 8 investment, given that the FMR covers debt service only marginally and market rents are slightly below the FMR. The presence of 21.3% renters suggests some demand, but the absence of DOM data leaves uncertainty about the speed of property turnover. Landlords should carefully evaluate their financial goals and tolerance for risk before making a purchase in this area.
Data Sources: FMR data from HUD (2027). 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.