Section 8 Fair Market Rent (FMR) for ZIP 48111 - 2027

Investment Score for ZIP 48111

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	$1,100
1 Bedroom	$1,220
2 Bedrooms	$1,530
3 Bedrooms	$1,860
4 Bedrooms	$2,020
5 Bedrooms	$2,343
6 Bedrooms	$2,624
7 Bedrooms	$2,834
8 Bedrooms	$2,976

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
2BR	$1,530	$189,758	0.81%	C
3BR	$1,860	$316,534	0.59%	F
4BR	$2,020	$411,677	0.49%	F
5BR	$2,343	$451,728	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48111 (Belleville, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48111, as set by HUD for 2026, is $1470 for a two-bedroom unit. This represents 23.0% of the median household income of $76,595 in the area. The FMR is a benchmark used to determine the maximum rent that can be charged to tenants using Section 8 vouchers. However, it is crucial to understand how these FMRs compare to actual rents in Belleville. Actual rents in the market tend to be higher than the FMRs. For instance, the Zillow median price for a two-bedroom home in ZIP 48111 is $187,779, which translates to a monthly rental cost of approximately $1565 based on a typical mortgage payment. This is already above the $1470 FMR for a two-bedroom unit. The price-to-FMR ratio of 10.6x suggests that the actual rental costs are significantly higher than the FMRs, making it challenging for voucher holders to find suitable housing. Given that the FMR for a three-bedroom unit is $1790, and the four-bedroom unit is $1950, the gap between FMR and actual market rents increases with the number of bedrooms. This means that families with larger households might struggle even more to find affordable housing within their voucher limits. #### Affordability & Renter Profile ZIP 48111 has a population of 44,709, with 31.6% being renters. This indicates a significant portion of the population relies on rental housing, which is essential for understanding the dynamics of the local rental market. The occupancy rate of 92.9% suggests that the rental market is relatively tight, with most available units being occupied. This high occupancy rate could contribute to upward pressure on rental prices. The median household income of $76,595 provides insight into the economic profile of the area. Given that 23.0% of this income is allocated towards a two-bedroom unit, it implies that the average renter in this ZIP code spends about $1765 per month on housing, which is slightly above the FMR. This indicates that the market is somewhat competitive, with rents often exceeding the FMR levels. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Based on the Zillow median price of $187,779 for a two-bedroom unit, the typical mortgage payment would be around $1565. Considering the FMR for a two-bedroom unit is $1470, this suggests that landlords operating strictly within the FMR guidelines might face challenges in covering their mortgage payments and other expenses such as maintenance, property taxes, and insurance. However, the high occupancy rate and the fact that actual market rents are well above the FMR indicate that there is potential for positive cash flow if investors can secure tenants willing to pay the market rates. Additionally, the price-to-FMR ratio of 10.6x suggests that the market is robust, and investors who can leverage this gap may find themselves in a favorable position. The investment grade for this ZIP code can be considered moderate. While the market is tight and rents are high, the challenge lies in finding tenants who can afford the higher market rates. Investors should consider the broader economic context and the willingness of residents to pay above FMR to ensure long-term profitability. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given that the FMR for larger units (three and four-bedroom) is closer to the actual market rents, investors might want to focus on properties with three or more bedrooms. For example, a three-bedroom unit with an FMR of $1790 is only slightly below the Zillow median price-based rent of $1565, providing a better chance for positive cash flow. 2. **Consider Non-Section 8 Tenants**: Due to the significant gap between FMR and actual market rents, investors should consider targeting non-Section 8 tenants who can afford higher rents. This strategy can help cover the mortgage and other operational costs more effectively. 3. **Explore Government Programs**: Investors should look into government programs that provide additional subsidies or incentives for landlords who accept Section 8 vouchers. These programs can help bridge the gap between FMR and actual market rents, making the investment more viable. #### Bottom Line For Section 8-focused investors, the ZIP code 48111 presents a mixed picture. While the rental market is tight and occupancy rates are high, the gap between FMR and actual market rents poses significant challenges. Therefore, the recommendation is to **Skip** this ZIP code for pure Section 8 investments unless additional subsidies or incentives are available. Instead, investors might want to consider areas where the FMR is closer to the actual market rents or explore strategies that include a mix of Section 8 and non-Section 8 tenants to optimize cash flow and profitability.

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.