Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,000 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
The ZIP code 48123, located within the broader Detroit-Warren-Livonian, MI HUD Metro FMR Area, has a Fair Market Rent (FMR) of $1220 for fiscal year 2024. This figure represents the median rental cost for a two-bedroom apartment in the area, according to HUD guidelines. However, specific market rents and home values for ZIP 48123 are not available, nor is the exact percentage of renters. Despite this, we can make some inferences based on the FMR alone.
To contextualize, let's consider the typical characteristics of ZIP codes within the Detroit-Warren-Livonian, MI HUD Metro FMR Area. The area generally experiences a mix of economic conditions, with some neighborhoods offering more affordable housing options while others cater to higher-income residents. The absence of market rent and home value data for ZIP 48123 suggests it might be an outlier, possibly due to unique local conditions or limited availability of real estate data.
Given that the FMR for ZIP 48123 is $1220, this places it slightly above the average FMR for the metro area. However, without market rent data, it's unclear if this reflects a premium sub-market where rents exceed the FMR or a value pocket where market rents are lower but still within the HUD guidelines. Typically, areas with a higher FMR could indicate a premium sub-market, especially if coupled with higher home values, which would suggest a more affluent demographic. Conversely, if the area had a below-average FMR but a high renter share, it might represent a value pocket attractive to Section 8 tenants.
The unknown percentage of renters in ZIP 48123 adds another layer of complexity. A high renter share in a neighborhood with below-metro average home values often signifies a favorable environment for Section 8 participants, as it indicates a concentration of affordable rental properties. However, since we don't have specific renter share data, we cannot definitively classify ZIP 48123 as a sweet spot for Section 8 investments solely based on the FMR.
In summary, ZIP 48123 appears to lean towards being a mid-tier neighborhood within the Detroit-Warren-Livonian, MI HUD Metro FMR Area, given its FMR of $1220. To accurately determine its status as a value pocket or premium sub-market, additional data on market rents, home values, and the percentage of renters would be necessary. Landlords and small-portfolio investors should proceed with caution and seek further information before making investment decisions.
Data Sources: FMR data from HUD (2027).
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.