Location: Ann Arbor, MI | Metro: Ann Arbor, MI MSA
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 | $1,670 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,480 |
| 4 Bedrooms | $2,720 |
| 5 Bedrooms | $3,155 |
| 6 Bedrooms | $3,534 |
| 7 Bedrooms | $3,817 |
| 8 Bedrooms | $4,008 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $323,055 | 0.64% | D |
| 3BR | $2,480 | $488,662 | 0.51% | F |
| 4BR | $2,720 | $648,947 | 0.42% | F |
| 5BR | $3,155 | $991,959 | 0.32% | F |
U.S. Census Bureau data (2024)
The ZIP code 48105, located within the Ann Arbor, MI Metropolitan Statistical Area (MSA), has several notable characteristics that distinguish it from typical ZIP codes in the same metro area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1750, which is significantly lower than the market rent of $2,497. This indicates that 48105 could be considered a value pocket within the broader Ann Arbor MSA.
Additionally, the median home value in 48105 stands at $555,720. While this figure is above average for many areas, it's important to note that the overall cost of living in the Ann Arbor MSA can be quite high, so this home value might still represent a relatively affordable option compared to other ZIP codes within the metro.
A key indicator for potential rental opportunities is the renter share, which in 48105 is 49.9%. This suggests that nearly half of the residents are renters, aligning closely with the national average but potentially higher than some suburban areas within the MSA. The combination of a high renter share with below-metro market rents and above-average home values makes 48105 an interesting consideration for landlords and small-portfolio investors looking to capitalize on the demand for affordable housing.
Given the data, it's reasonable to infer that 48105 is a mid-tier neighborhood within the Ann Arbor MSA. It offers a balance between affordability and property value, making it attractive to both tenants and investors. However, the discrepancy between the FMR and market rent also points to a segment of the market where subsidized housing programs like Section 8 could play a significant role in stabilizing rental costs for low-income residents.
In conclusion, ZIP 48105 presents itself as a valuable opportunity for real estate investment, particularly for those interested in the Section 8 program. Its economic indicators suggest a stable yet affordable market, with potential for steady rental income and appreciation in property value over time.
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.