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 | $1,000 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,120 | $85,523 | 1.31% | A |
| 2BR | $1,400 | $164,551 | 0.85% | C |
| 3BR | $1,700 | $231,470 | 0.73% | D |
| 4BR | $1,850 | $293,056 | 0.63% | D |
| 5BR | $2,146 | $319,445 | 0.67% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP 48080, located in Saint Clair Shores, MI, does not favor landlords. The Federal Market Rent (FMR) for FY 2024 is set at $1280, while the actual market rent, measured by Zillow's ZORI index, stands at $1642. This discrepancy means that tenants eligible for Section 8 assistance would not be able to cover the full market rent, resulting in a shortfall for landlords.
Acquisition in this area remains affordable. With a median home value of $218,699, the cost of entry into the real estate market is relatively low. Additionally, the average number of days on the market (DOM) is 21, indicating a brisk pace of sales. The low price-cut share of 0.3% suggests that homes are selling close to their asking prices, which is favorable for both buyers and sellers.
Tenant demand is present but not overwhelming. The total population of ZIP 48080 is 21,561, with 21.5% of residents being renters. This translates to approximately 4,635 potential rental applicants. While this number represents a sizeable tenant pool, it may not be sufficient to sustain a high volume of rental properties, especially considering the rent shortfall mentioned earlier.
In summary, while the acquisition costs in ZIP 48080 are affordable and the market moves quickly, the disparity between FMR and market rent makes Section 8 properties less profitable. Tenant demand exists but is limited, making it essential for landlords and small-portfolio investors to carefully consider the financial implications before investing in this area.
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.