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 | $1,300 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,810 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,810 | $223,398 | 0.81% | C |
| 3BR | $2,200 | $336,334 | 0.65% | D |
| 4BR | $2,390 | $475,102 | 0.5% | F |
| 5BR | $2,772 | $547,446 | 0.51% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 48083, Troy, MI, is slightly off balance. The Fair Market Rent (FMR) set by HUD for the area for fiscal year 2024 is $1580, while the actual market rent, as indicated by ZORI, stands at $1685. This means that landlords can expect to earn approximately $105 more per unit than the government's benchmark suggests, but it also indicates that tenants might find the market rent higher than what they anticipate based on government guidelines.
Acquisition of properties in this ZIP code remains relatively affordable. With a median home value of $357,657, the cost of entry is manageable for small-portfolio investors. The average days on market (DOM) is 29 days, which is a positive sign indicating that homes are selling quickly. Additionally, only 0.1% of homes are being listed with a price cut, suggesting that the market is stable and sellers are not feeling pressured to lower their asking prices.
Tenant demand in ZIP 48083 is robust. The area has a population of 23,771, with 37.8% of residents being renters. This significant renter share ensures a steady pool of potential tenants, making it likely that units will be occupied consistently.
Based on these factors, ZIP 48083 presents a viable investment opportunity for landlords and small-portfolio investors. While the rent may exceed HUD's FMR slightly, the quick turnover of properties and strong tenant demand make it a favorable market. The stability in property values and minimal need for price adjustments further support the case for investment 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.