Section 8 Fair Market Rent (FMR) for ZIP 48101 - 2027

Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area

Investment Score for ZIP 48101

C
Monthly Rent (2BR)
$1,450
Median Price (2BR)
$168,180
1% Rule
0.86%
Annual Yield
10.35%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,040
1 Bedroom$1,160
2 Bedrooms$1,450
3 Bedrooms$1,770
4 Bedrooms$1,920
5 Bedrooms$2,227
6 Bedrooms$2,494
7 Bedrooms$2,694
8 Bedrooms$2,829

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,450 $168,180 0.86% C
3BR $1,770 $221,843 0.8% D
4BR $1,920 $283,181 0.68% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
27,925
Median Household Income
$81,655
Housing Units
12,374
Renter Percentage
12.7%
Occupancy Rate
95.3%
Renter Occupied
1,497

Allen Park, located in Wayne County, Michigan, is a residential area with a population of 27,925. The ZIP code 48101 stands out due to several key metrics that define its housing landscape. Only 12.7% of the residents rent their homes, indicating a predominantly owner-occupied community. The median household income is $81,655, which is relatively strong for the region. However, the median home value at $206,297 suggests a mixed housing market where affordability and property values coexist.

The economics of Section 8 vouchers in Allen Park are favorable for landlords. The Fair Market Rent (FMR) for ZIP 48101 in fiscal year 2024 is set at $1,290, while the actual market rent, as measured by ZORI, is $1,220. This means that landlords can expect a slightly higher rent payment from Section 8 tenants compared to the average market rate, providing a margin that compensates for any potential risks associated with the program.

The data signature for ZIP 48101 reads as stable. With a low rental rate and a moderate median income, the majority of residents are likely able to afford homeownership without relying heavily on rental assistance. The slight premium offered by the Section 8 voucher program can be seen as an additional incentive for landlords to participate, ensuring steady tenant occupancy and predictable income streams.

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.