Section 8 Fair Market Rent (FMR) for ZIP 48104 - 2027

Investment Score for ZIP 48104

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	$1,730
1 Bedroom	$1,780
2 Bedrooms	$2,140
3 Bedrooms	$2,570
4 Bedrooms	$2,810
5 Bedrooms	$3,260
6 Bedrooms	$3,651
7 Bedrooms	$3,943
8 Bedrooms	$4,140

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,780	$279,867	0.64%	D
2BR	$2,140	$311,321	0.69%	D
3BR	$2,570	$527,582	0.49%	F
4BR	$2,810	$805,390	0.35%	F
5BR	$3,260	$931,373	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48104 (Ann Arbor, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48104 in Ann Arbor, Michigan, for 2026 is set at $1970 for a two-bedroom unit. This represents 36.8% of the median household income of $64,231. However, the actual rent prices in the area are significantly higher. The Zillow median price for a two-bedroom unit is $305,251, which translates to a monthly rental cost that is approximately 12.9 times the FMR. This means that landlords who accept Section 8 vouchers must limit their rent to $1970 per month for a two-bedroom unit, which is far below the market rate. This constraint can be a significant deterrent for landlords, especially those who might be looking to maximize their returns on investment properties. #### Affordability & Renter Profile ZIP code 48104 has a high percentage of renters at 63.1%, indicating a strong demand for rental housing. The occupancy rate stands at 90.8%, suggesting that the market is relatively tight, with few vacant units available. Given that the median household income is $64,231, the affordability of housing becomes a critical issue for many residents. The high rent-to-income ratio, particularly for two-bedroom units, makes it challenging for families to find affordable housing without assistance like Section 8 vouchers. The majority of the population relies heavily on rental subsidies to manage their housing costs effectively. #### Investor Angle From an investor perspective, accepting Section 8 vouchers in ZIP code 48104 would likely result in a negative cash flow. Given the FMR for a two-bedroom unit is $1970, and the market rent is much higher, landlords would need to consider the trade-offs between accepting vouchers and maximizing their rental income. The investment grade for properties in this ZIP code is low due to the stringent rent limits imposed by the Section 8 program. Investors should also factor in the administrative burden and potential delays associated with the voucher process. #### Specific Actionable Insights 1. **Consider Alternative Rental Assistance Programs**: Since the FMR is significantly lower than market rates, landlords might want to explore alternative rental assistance programs that offer higher subsidy levels. This could help mitigate the financial impact of accepting vouchers while still providing affordable housing options for tenants. 2. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investing in smaller units such as studios or one-bedroom apartments might be more financially viable. For example, the FMR for a one-bedroom unit is $1650, which is closer to the actual market rent for these types of units compared to larger ones. 3. **Target Areas with Lower Market Rates**: Within the broader Ann Arbor area, there might be sub-markets or neighborhoods where the market rent is closer to the FMR. Identifying these areas could provide better opportunities for cash flow-positive investments while still serving the needs of voucher holders. #### Bottom Line For investors focusing specifically on Section 8 vouchers, ZIP code 48104 presents a challenging environment due to the wide gap between FMR and market rent. The recommendation for this ZIP code is to **Skip** unless you can identify specific strategies to improve cash flow, such as targeting smaller units or exploring alternative rental assistance programs. The high market rent and low FMR make it difficult to achieve positive cash flow while adhering to the voucher program's guidelines.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.