Section 8 Fair Market Rent (FMR) for ZIP 48108 - 2027

Location: Ann Arbor, MI | Metro: Ann Arbor, MI MSA

Investment Score for ZIP 48108

Monthly Rent (2BR)

$1,730

Median Price (2BR)

$277,911

1% Rule

0.62%

Annual Yield

7.47%

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	$1,400
1 Bedroom	$1,440
2 Bedrooms	$1,730
3 Bedrooms	$2,080
4 Bedrooms	$2,270
5 Bedrooms	$2,633
6 Bedrooms	$2,949
7 Bedrooms	$3,185
8 Bedrooms	$3,344

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	$1,730	$277,911	0.62%	D
3BR	$2,080	$391,130	0.53%	F
4BR	$2,270	$612,564	0.37%	F
5BR	$2,633	$787,882	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

27,666

Median Household Income

$89,355

Housing Units

12,796

Renter Percentage

44.6%

Occupancy Rate

96.5%

Renter Occupied

5,507

The ZIP code 48108, located in Ann Arbor, Michigan, is part of a vibrant college town known for its high quality of life, excellent educational institutions, and diverse economy. This area attracts students, young professionals, and families, making it a desirable location for real estate investments. Here's a concise market analysis based on recent data:

Fair Market Rent (FMR) for ZIP 48108 in fiscal year 2024 is set at $1,380. This figure represents the maximum amount that a low-income household can afford to pay for housing without spending more than 30 percent of their adjusted income.
The market rent for ZIP 48108, as indicated by ZORI (Zillow Observed Rental Index), stands at $2,123. This suggests that rental properties in the area are priced above the government-set FMR, indicating strong demand and potential for higher returns on investment.
The median home value in ZIP 48108 is $439,928. This reflects a robust residential market where property values are relatively high, which could be indicative of a stable and growing local economy.
Renters make up 44.6% of the population in this ZIP code. This significant share of renters highlights the importance of the rental market in the area and suggests a steady demand for rental properties.
The average Days on Market (DOM) for rental listings is 11 days. This short period indicates a quick turnover rate for rentals, which is beneficial for landlords and investors looking to minimize vacancy periods.
The median household income in ZIP 48108 is $89,355. This level of income supports a strong rental market and implies that residents have the financial capability to sustain higher rental rates.

Investors in ZIP 48108 can expect a solid rental market driven by a mix of students and working professionals. The gap between the FMR and the actual market rent points to opportunities for higher yields, while the short DOM and substantial renter share indicate a healthy and competitive market. With median incomes supporting higher rents, there is a good chance that rental prices will remain resilient, making this area attractive for both long-term and short-term investments.

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.