Section 8 Fair Market Rent (FMR) for ZIP 48095 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 48095

• Roseville Housing Commission (Roseville, MI) - 314 Section 8 vouchers
• Eastpointe Housing Commission (Eastpointe, MI) - 175 Section 8 vouchers
• St Clair Shores Housing Commission (Saint Clair Shores, MI) - 90 Section 8 vouchers
• Sterling Heights Housing Commission (Sterling Heights, MI) - 44 Section 8 vouchers
• Clinton Township Housing Commission (Clinton Township, MI) - 26 Section 8 vouchers
• Mount Clemens Housing Commission (Mount Clemens, MI)
• New Haven Housing Commission (New Haven, MI)

When considering whether to invest in ZIP code 48095 for Section 8 properties, follow these steps:

1) Does FMR $1100 (zip FY 2024) clear debt service on a $528,003 property?

• Yes: The Fair Market Rent (FMR) of $1100 can cover the debt service on a property valued at $528,003, assuming typical financing terms. This indicates that the rental income will be sufficient to meet mortgage payments and other financial obligations.
• No: If the FMR does not cover the debt service, then investing in this area for Section 8 is not financially viable. You would need to find properties priced lower or with better financing options to ensure the $1100 monthly rent covers all costs.

2) Is market rent $917 (Census ACS) above, at, or below FMR?

• Above: If the market rent exceeds the FMR, then there is potential for higher returns outside of Section 8. However, this also means fewer tenants will qualify for the program.
• At: If market rent matches the FMR, then the property is well-aligned with the average rent that Section 8 participants can afford. This scenario suggests a balanced investment opportunity.
• Below: If market rent is below the FMR, it indicates that the property could attract more Section 8 tenants, but you might miss out on higher market rents.

3) Are 6.4% renters + N/A-day days on market (DOM) enough demand?

• It Depends: With only 6.4% of the population being renters, the demand for rental properties is relatively low. However, the absence of data on days on market (DOM) makes it difficult to assess how quickly properties are rented. If DOM is short, it suggests strong demand despite the low percentage of renters. Conversely, if DOM is long, it implies weak demand even among those who rent.

To summarize, if the FMR of $1100 clears the debt service on a $528,003 property and aligns closely with the market rent of $917, the investment is feasible. The low rental population percentage requires further investigation into the actual DOM to determine the viability of the investment. If DOM is favorable, proceed with confidence; otherwise, reconsider the investment due to insufficient demand.

Data Sources: FMR data from HUD (2027). 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.