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 | $245,533 | 0.57% | F |
| 3BR | $1,720 | $330,860 | 0.52% | F |
| 4BR | $1,860 | $431,064 | 0.43% | F |
| 5BR | $2,158 | $526,749 | 0.41% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 48079 in Saint Clair, MI, must be carefully considered. Tenant turnover could pose a significant challenge, with the market rent at $1,139 being slightly below the Fair Market Rent (FMR) of $1,240 for FY 2024. This discrepancy suggests that tenants might seek higher rents, leading to frequent changes in occupancy.
Vacancy exposure is another concern due to the lack of available data on days on market (DOM). Without this information, it's difficult to predict how long a property might remain vacant between tenants, which can significantly impact cash flow.
Deferred maintenance is also a risk factor, especially when considering the typical home value of $311,140 and the median income of $79,891. The median income is relatively low compared to the cost of housing, which may limit the ability of tenants to contribute to the upkeep of the property. Landlords should be prepared to manage maintenance costs proactively to avoid accumulating deferred expenses.
However, these risks are tempered by the high renter share of 17.9%. High renter density typically correlates with a greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help ensure a steady stream of qualified tenants who are likely to stay longer, mitigating some of the turnover and vacancy risks.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.