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 | $1,120 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,560 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,900 | $421,031 | 0.45% | F |
| 4BR | $2,060 | $585,958 | 0.35% | F |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP 48096 highlights several potential challenges that landlords and small-portfolio investors must consider before entering into a Section 8 agreement. Tenant turnover poses a significant issue, with the market rent at $1,259 compared to the Fair Market Rent (FMR) of $1,230 for FY 2024. This slight discrepancy can lead to higher turnover rates as tenants might seek more affordable housing options, thereby increasing the likelihood of vacancies.
Vacancy exposure is another concern, given the lack of data on days on market (DOM). The absence of this metric makes it difficult to predict how long a property might remain vacant between tenancies. In a scenario where the DOM is unexpectedly high, the financial impact on the landlord could be substantial.
Deferred maintenance also presents a risk, particularly considering the typical home value of $415,523 and the median income of $117,917. Landlords need to be prepared for potential higher maintenance costs, as the median income suggests that residents may not have the financial capacity to cover additional expenses beyond their rental obligations.
However, these risks are somewhat mitigated by the high renter share of 13.5%. High renter density usually indicates a greater demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants. Despite the challenges, the presence of a large number of renters in the area ensures a consistent pool of potential voucher holders, reducing the overall risk of vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.