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 | $1,570 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $346,595 | 0.63% | D |
| 3BR | $2,670 | $416,290 | 0.64% | D |
| 4BR | $2,900 | $508,483 | 0.57% | F |
| 5BR | $3,364 | $657,557 | 0.51% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1940 for ZIP code 48085 in Troy, MI, landlords can expect to receive this amount per unit from the government for Section 8 participants. The market rent, or ZORI, stands at $2,800, indicating that properties rented through traditional means fetch a significantly higher rate. Given the median home value of $459,998, it's evident that the area commands premium pricing. Renter share in the region is 8.5%, which is relatively low, suggesting that homeownership remains a popular choice among residents. However, the median income of $146,390 provides a strong financial base for both renters and potential homeowners. The average Days on Market (DOM) of 6 days reflects a robust demand for rental properties, ensuring quick turnovers for landlords. Furthermore, the price-cut share of just 0.2% indicates that properties are typically rented at or near their asking price, minimizing the need for discounts. For landlords and small-portfolio investors, these figures paint a picture of a stable and desirable market. The low renter share combined with high market rents suggests that while competition might be stiff, there are ample opportunities to capitalize on the demand for affordable housing. With the FMR set at $1940, participating in the Section 8 program can provide a steady and reliable source of income. However, given the median income and market rents, landlords might also consider targeting the broader market to achieve higher returns. In conclusion, for those willing to engage with the Section 8 program, ZIP 48085 presents a viable option, but the broader rental market offers significant potential for higher yields.
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.