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 | $970 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $278,760 | 0.48% | F |
| 3BR | $1,640 | $435,323 | 0.38% | F |
| 4BR | $1,780 | $569,616 | 0.31% | F |
| 5BR | $2,065 | $673,811 | 0.31% | F |
U.S. Census Bureau data (2024)
ZIP code 48065, located in Romeo, MI, falls within the broader Detroit-Warren-Livonian, MI HUD Metro Fair Market Rent (FMR) Area. To analyze its position relative to other ZIP codes in the same metropolitan area, we must consider several key metrics: Fair Market Rent (FMR), market rent, home values, and the percentage of renters.
The Fair Market Rent for ZIP 48065 in fiscal year 2024 is set at $1,200. This figure represents the maximum amount that a household receiving federal rental assistance can pay. In comparison, the market rent in 48065 is lower at $1,051. This suggests that while the FMR is higher, the actual rents charged are below this threshold, indicating potential opportunities for landlords to increase their rents without exceeding the FMR limit.
The median home value in 48065 stands at $422,593, which is likely above average for the entire Detroit-Warren-Livonian, MI HUD Metro FMR Area. However, given that only 15.0% of the population are renters, it's clear that homeownership is prevalent in this ZIP code. This low renter share contrasts with the high home values, suggesting that 48065 is not heavily reliant on rental income.
Based on these figures, ZIP 48065 appears to be a mid-tier neighborhood within its metro. The FMR is higher than the actual market rent, but the home values suggest that it is not a premium sub-market where property prices are significantly elevated. At the same time, the relatively low renter share indicates that it is not a value pocket where rental properties dominate and home values are depressed.
A divergence worth noting is that while the renter share is below the average for many Section 8 sweet spots, the home values are quite high. This combination might make 48065 less attractive for tenants seeking subsidized housing, but it also means that landlords could potentially charge higher rents without deterring those who are willing to pay more for quality housing. Landlords should be aware of the balance between FMR and market rent when setting their prices.
To summarize, 48065 is positioned as a mid-tier neighborhood within the Detroit-Warren-Livonian, MI HUD Metro FMR Area. Its FMR and market rent figures, along with its home values and renter share, indicate a stable but not particularly advantageous environment for Section 8 investors looking for sweet spots with high tenant demand and lower home values.
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.