Section 8 Fair Market Rent (FMR) for ZIP 48066 - 2027

Investment Score for ZIP 48066

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	$1,050
1 Bedroom	$1,180
2 Bedrooms	$1,470
3 Bedrooms	$1,790
4 Bedrooms	$1,940
5 Bedrooms	$2,250
6 Bedrooms	$2,520
7 Bedrooms	$2,722
8 Bedrooms	$2,858

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
1BR	$1,180	$65,052	1.81%	A+
2BR	$1,470	$122,129	1.2%	A
3BR	$1,790	$181,709	0.99%	C
4BR	$1,940	$203,112	0.96%	C
5BR	$2,250	$223,545	1.01%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48066 (Roseville, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48066, as of 2026, is set at $1430 for a two-bedroom unit, which represents 27.6% of the median household income of $62,182. This indicates that the FMR is relatively affordable compared to the average income in the area. However, it is important to understand how these FMRs compare to actual rents in the market. Actual rents in Roseville, MI, can be significantly higher than the FMR. The Zillow median price for a two-bedroom rental property is $118,952, which translates to a monthly rent of approximately $991 if we assume a standard mortgage payment based on a 30-year fixed-rate loan at 4%. However, this calculation is not directly relevant since the Zillow median price reflects home values rather than rental rates. Instead, the price-to-FMR ratio of 6.9x suggests that actual market rents are likely much higher than the FMR. For instance, a two-bedroom unit might cost around $9,781 annually ($1430 * 6.9), or about $815 per month. This means that voucher holders face significant constraints. They can only pay up to the FMR, which is substantially lower than what landlords might charge in the open market. Consequently, voucher holders have limited options and must often settle for units that are below average in terms of quality and location. #### Affordability & Renter Profile With 34.4% of the population renting, Roseville has a substantial number of renters. Given the occupancy rate of 95.7%, it is clear that the rental market is tight. There is little room for vacancy, suggesting that demand is high relative to supply. This tight market condition makes it difficult for renters to find affordable housing, especially those relying on Section 8 vouchers. The median household income of $62,182 indicates that many residents are middle-class families who may struggle to afford housing costs. With 27.6% of the median income allocated to a two-bedroom unit, it is evident that housing expenses represent a considerable portion of their budget. This tight allocation leaves little room for other essential expenditures such as healthcare, education, and transportation. #### Investor Angle From an investor perspective, the ZIP code 48066 offers mixed opportunities. While the rental market is tight, the FMRs are set quite low compared to potential market rents. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing rental properties. Assuming a two-bedroom unit, the FMR is $1430 per month. If we factor in typical operating expenses such as property taxes, insurance, maintenance, and utilities, which might total around 50% of the rent, the net income would be approximately $715 per month. This figure needs to cover the mortgage payment, if any, and still leave some profit. If the purchase price of a two-bedroom unit is close to the Zillow median of $118,952, the mortgage payment could be around $597 per month (assuming a 4% interest rate and 20% down payment). Therefore, the net cash flow would be roughly $118 per month, which is minimal but positive. However, the investment grade would be considered moderate due to the low margin between FMR and actual market rents. Investors should be prepared for the possibility of having to accept lower rents than they might otherwise command in the open market, particularly if they wish to attract tenants using Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Quality Units**: Given the tight market, investors should focus on acquiring well-maintained and desirable units. These units are more likely to attract tenants willing to pay closer to the FMR, even if they are voucher holders. A two-bedroom unit in good condition could potentially command a slight premium over the FMR, though this would depend on the specific location and amenities. 2. **Consider Smaller Units**: One-bedroom units have an FMR of $1140, which is still a significant portion of the median income but might offer better cash flow opportunities. Since the price-to-FMR ratio is 6.9x, the actual market rent for a one-bedroom unit could be around $7,794 annually ($1140 * 6.9), or about $649 per month. This could provide a slightly better margin for investors, especially if they can secure tenants paying the full FMR. 3. **Location Matters**: In a tight market like Roseville, the location of the property is crucial. Units located near public transportation, schools, and shopping centers are more likely to be occupied and command higher rents. Investors should prioritize properties in these areas to maximize their chances of attracting tenants and achieving positive cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 48066 presents a challenging yet potentially rewarding opportunity. The tight rental market and high occupancy rate suggest strong demand, but the low FMRs mean that investors will need to carefully manage their properties to ensure profitability. Given the moderate investment grade and the potential for positive cash flow, the recommendation is to **hold** investments in this ZIP code. Investors should focus on maintaining high-quality units and strategically positioning them in desirable locations to maximize their chances of attracting tenants willing to pay the full FMR. While the margins are thin, the overall stability and demand in the market make it a viable option for those willing to invest in improving and managing their properties effectively.

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.