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 | $1,130 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,580 |
| 3 Bedrooms | $1,920 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,580 | $308,774 | 0.51% | F |
| 3BR | $1,920 | $447,299 | 0.43% | F |
| 4BR | $2,090 | $624,056 | 0.33% | F |
| 5BR | $2,424 | $837,328 | 0.29% | F |
U.S. Census Bureau data (2024)
The ZIP code 48094, located in Washington, Michigan, presents a dynamic housing market with clear indicators of ongoing pressures. The Fair Market Rent (FMR) for the area, set at $1,500 for fiscal year 2024, contrasts sharply with the actual market rent, which stands at a higher $1,970. This disparity suggests that the rental market is robust, likely due to strong demand exceeding what is considered fair market pricing.
The low price-cut share of 0.2% indicates that property owners are generally not feeling compelled to reduce their asking prices, a sign of steady demand for homeownership. However, the lack of available data on days on market (DOM) makes it challenging to fully assess the speed at which homes are selling. Nevertheless, the median home value of $461,556 reflects a stable and potentially growing real estate market, assuming that sales are closing without significant reductions from initial asking prices.
A key factor in understanding the market dynamics is the 18.7% share of renters. This percentage is relatively high and signals a significant segment of the population preferring or needing to rent rather than buy. Such a trend can exert long-term pressure on the rental market, as it implies a continuous demand for rental properties. Landlords and small-portfolio investors should note that this persistent rental demand can be an opportunity for steady income generation, especially if they can offer competitive rents that align closely with the FMR but still capture the higher market rent.
In summary, the market in ZIP 48094 appears to be one where demand, particularly for rentals, is strong. The gap between FMR and market rent, along with the low rate of price cuts, points towards a scenario where demand may be outpacing supply, creating opportunities for those who can provide rental units that meet the needs of the local population.
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.