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 | $1,260 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,760 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,330 |
| 5 Bedrooms | $2,703 |
| 6 Bedrooms | $3,027 |
| 7 Bedrooms | $3,269 |
| 8 Bedrooms | $3,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,760 | $165,791 | 1.06% | B |
| 3BR | $2,140 | $282,227 | 0.76% | D |
| 4BR | $2,330 | $353,703 | 0.66% | D |
| 5BR | $2,703 | $405,384 | 0.67% | D |
U.S. Census Bureau data (2024)
The ZIP code 48076, located in Lathrup Village, MI, presents an interesting scenario for both renters and landlords. The median household income in this area stands at $90,058, which provides a baseline for assessing the affordability of housing. At a market rate of $1,648 per month (ZORI), renting in this ZIP code requires careful budgeting. For context, a household earning the median income would allocate approximately 22% of their annual income towards rent, which is within the generally recommended range but still represents a significant portion of disposable income.
Comparatively, the Fair Market Rent (FMR) for ZIP 48076 in fiscal year 2024 is set at $1,560, which is slightly below the market rate. This means that households participating in the Section 8 voucher program could potentially find units at or below this subsidized rate. However, landlords should be aware that the voucher payment standard is lower than the market rate, indicating a potential affordability gap for tenants without vouchers.
With 26.4% of the 25,405 population being renters, there is a notable demand for rental properties. Yet, the disparity between the market rate and the FMR suggests that many renters might struggle to afford market-rate rents. This gap could intensify competition among landlords, especially those who opt to accept only cash-paying tenants. Landlords who are flexible and willing to participate in the Section 8 voucher program may attract a different segment of the rental market, ensuring a steady stream of income even if it's at a slightly lower rate than the market average.
The takeaway for landlords is clear: while accepting Section 8 vouchers may result in lower monthly rents compared to market rates, it can provide a more stable tenant pool and reduce vacancy rates. Given the affordability challenges faced by some renters, diversifying into both voucher and cash-pay strategies can be a prudent approach to maximize occupancy and income in ZIP 48076.
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.