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 | $1,010 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,410 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $175,735 | 0.8% | C |
| 3BR | $1,720 | $268,394 | 0.64% | D |
| 4BR | $1,860 | $327,487 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 48074, encompassing Smiths Creek, MI, presents an interesting landscape for both renters and landlords. The median income in this area stands at $71,047, which provides a baseline for understanding the financial capabilities of local households.
A household earning the median income would find the market rate of $1,150 per month challenging but not impossible to afford. However, it is crucial to note that the actual affordability hinges on other factors such as the number of dependents, additional expenses, and savings goals. For those who qualify, the Housing Choice Voucher program offers some relief, with the Fair Market Rent (FMR) set at $1,140 for the fiscal year 2024. This figure is nearly identical to the market rate, indicating that voucher recipients might face little to no reduction in rent compared to paying out-of-pocket.
With only 11.0% of the 9,624 residents being renters, the competition among landlords is relatively low. However, this also means there is a smaller pool of potential tenants, making it imperative for landlords to consider the benefits of accepting vouchers. While the difference between the market rate and the voucher payment is minimal, the stability and security of receiving timely payments from the government can be a significant advantage over relying solely on cash-paying tenants.
Takeaway: Landlords in ZIP 48074 should weigh the advantages of accepting Housing Choice Vouchers against the slight reduction in rent they might receive. Given the low percentage of renters and the comparable FMR to market rates, accepting vouchers can provide a steady stream of income and reduce the risk of vacancy or late payments. This strategy can be particularly beneficial in a market where the affordability gap for renters is narrow.
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.