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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,410 | $171,239 | 0.82% | C |
| 3BR | $1,720 | $251,120 | 0.68% | D |
| 4BR | $1,860 | $284,938 | 0.65% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 48088, located in Warren, Michigan, within Macomb County, can be dissected into several key components. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1220. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program in this particular area.
In contrast, the local market rent for a two-bedroom unit, according to the Census ACS (American Community Survey), averages around $1172. This indicates that the SAFMR for ZIP 48088 is slightly above the average market rent, which could be beneficial for landlords participating in the program.
A landlord should understand that the total reimbursement received from a Section 8 voucher includes both the tenant's portion of the rent and any utility allowances. Typically, the tenant is responsible for paying approximately 30% of their adjusted income towards rent. The remaining amount, up to the SAFMR limit, is paid by the Housing Authority.
Utility allowances vary but are generally set to cover the cost of utilities such as electricity, gas, water, and sewage. These allowances are added to the basic rental payment made by the Housing Authority. However, the exact amount depends on the tenant's voucher and the specific utility costs in the area.
To illustrate, if a tenant's portion of the rent is $350 (based on 30% of an adjusted income of $1167), the Housing Authority would pay the remainder up to the SAFMR limit. In this case, the Housing Authority would pay $870, making the total reimbursement $1220.
If the actual market rent is below the SAFMR, landlords still receive the full amount of the voucher payment, which means they might not face a shortfall. However, in ZIP 48088 where the SAFMR is higher than the local market rent, landlords could experience a surplus. With a local market rent of $1172, a landlord renting out a two-bedroom unit for the market price would receive a surplus of $48 per month from the Section 8 voucher program.
This surplus allows landlords to potentially increase their profit margins without charging tenants more than they can afford. It also provides some buffer against maintenance and vacancy costs, making Section 8 participation a viable option for landlords in Warren, Michigan.
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.