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 | $880 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $110,153 | 0.89% | C |
| 2BR | $1,230 | $145,840 | 0.84% | C |
| 3BR | $1,500 | $188,548 | 0.8% | D |
| 4BR | $1,630 | $204,130 | 0.8% | D |
| 5BR | $1,891 | $224,146 | 0.84% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,100 for ZIP 48060 in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $170,055. The answer depends on the mortgage terms and interest rates. Assuming a typical 30-year fixed-rate mortgage with an interest rate of around 5%, the monthly payment on a $170,055 home would be approximately $910. This means that the FMR of $1,100 could indeed cover the mortgage payment, leaving some room for maintenance and other expenses.
The same investor could also doubt if there is sufficient renter demand given the occupancy rate of 37.0%. While this percentage seems low, it's important to consider the context. Port Huron, MI, has a stable population with steady rental demand. The low occupancy rate suggests that there are opportunities for new landlords to enter the market and capture a share of the renters. Additionally, a lower occupancy rate can be seen as a positive indicator for potential vacancy risk mitigation, as it implies less competition for tenants.
Another concern might be whether Housing Choice Vouchers will keep up with the market rents of $1,059. According to the latest HUD guidelines, voucher holders can pay up to 40% of their adjusted income towards rent, which is typically calculated based on the area median income (AMI). In ZIP 48060, the AMI for a family of four is around $51,000, meaning voucher recipients could potentially contribute up to $204 per month towards rent. However, the actual voucher amount varies widely depending on individual circumstances. In practice, landlords often find that voucher payments are sufficient but may require additional rent from tenants to reach market levels. This situation is common across many markets and not unique to Port Huron.
To summarize, while the FMR of $1,100 can cover the mortgage on a $170,055 home, the occupancy rate of 37.0% indicates a niche market opportunity rather than a saturated one. As for the Housing Choice Vouchers, they generally help offset the cost of rent, though they may not fully meet the $1,059 market rent figure without tenant contributions. These points provide a balanced view of the investment landscape in ZIP 48060, highlighting both the challenges and the opportunities.
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.