Location: Monroe, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,330 | $231,200 | 0.58% | F |
| 3BR | $1,630 | $322,540 | 0.51% | F |
| 4BR | $2,200 | $381,545 | 0.58% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48117 in Carleton, Michigan, reveals a unique balance between yield and stability that is neither purely high-yield/low-stability nor a steady cash-flow zone. The Family Monthly Rent (FMR) for the fiscal year 2024 is set at $1,100, which is slightly below the market rent of $1,120. This indicates a modest potential for rental income above the guaranteed FMR, but not at levels that would classify it as a high-yield market.
On the stability axis, the ZIP code presents a mixed picture. With only 10.8% of residents being renters, the market has limited demand for rental properties. Additionally, the median household income is relatively low at $78,942, which could impact the ability of tenants to consistently pay rent. However, the lack of data on days on market (DOM) suggests either a very stable rental market where properties are quickly rented out, or a scarcity of recent rental transactions making it difficult to assess volatility.
The median home value of $323,470 provides insight into the overall property values in the area, but does not directly correlate with rental yields. It's important to note that the rental market in ZIP 48117 is moderately attractive due to the slight premium over the FMR, but the low percentage of renters and lower median income indicate potential challenges in maintaining occupancy and rent payment consistency.
To summarize, ZIP 48117 is best classified as a market with moderate yield potential and moderate stability concerns. Landlords and small-portfolio investors should carefully consider these factors when evaluating the suitability of this ZIP code for their investment strategies.
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.