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 | $1,440 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,440 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,000 | $274,439 | 0.73% | D |
| 3BR | $2,440 | $439,793 | 0.55% | F |
| 4BR | $2,640 | $681,235 | 0.39% | F |
| 5BR | $3,062 | $846,531 | 0.36% | F |
U.S. Census Bureau data (2024)
The ZIP code 48098, located in Troy, Michigan, is primarily a homeowner-dominated area with only 8.9% of residents being renters. This indicates that the tenant pool is relatively small compared to the number of homeowners. The median household income in this area is quite high at $164,759, which places it among the higher-income brackets nationally.
The market rent for the area stands at $1,963 per month, which consumes approximately 11.9% of the median household income. This is a significant portion of income but still manageable for most households given the high median income level. However, when comparing the market rent to the Fair Market Rent (FMR) of $1,840 for FY 2024, we see that the market rent slightly exceeds the FMR, indicating a slight premium on rental properties in this ZIP code.
The demand for Section 8 vouchers in this area is likely to be lower due to the smaller proportion of renters and the higher income levels. Landlords should not expect a deep pool of tenants relying solely on vouchers. Instead, they should anticipate a mix of tenants who may have some financial assistance but also contribute additional income to cover the market rent. Given the premium on market rents over the FMR, landlords might need to consider offering competitive amenities and maintaining a high standard of property upkeep to attract tenants in this ZIP code.
In summary, landlords in ZIP 48098 should prepare for a tenant pool that is less dependent on housing vouchers and more capable of paying higher rents reflective of the local market conditions. While some tenants may use vouchers, they will likely supplement their voucher amount to meet the $1,963 market rent. This ZIP code's characteristics suggest a focus on attracting financially stable tenants who value the quality of living in a high-income neighborhood.
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.