Location: Detroit-Warren-Livonia, 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 | $1,150 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $1,950 |
| 4 Bedrooms | $2,120 |
| 5 Bedrooms | $2,459 |
| 6 Bedrooms | $2,754 |
| 7 Bedrooms | $2,974 |
| 8 Bedrooms | $3,123 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,280 | $85,700 | 1.49% | A |
| 2BR | $1,600 | $172,526 | 0.93% | C |
| 3BR | $1,950 | $238,705 | 0.82% | C |
| 4BR | $2,120 | $376,434 | 0.56% | F |
| 5BR | $2,459 | $510,375 | 0.48% | F |
U.S. Census Bureau data (2024)
The real estate landscape in Dearborn, Michigan (ZIP 48124), is characterized by a median home value of $234,507. This figure, combined with the observation that only 0.3% of listings have reduced their prices, indicates a market where sellers retain significant pricing power. The 21-day median days on market (DOM) further supports this, suggesting that homes are selling quickly, often before reaching their full price potential.
For landlords and small-portfolio investors, the setup implies a favorable environment for maintaining or slightly increasing rental rates. The Federal Market Rent (FMR) for ZIP 48124 in fiscal year 2024 is projected at $1,430, whereas the actual market rent, measured by Zillow's Observed Rental Index (ZORI), stands at $1,793. This gap signals that rental properties can command higher rates than the government benchmark, which could continue as demand remains steady and supply tight.
In terms of long-term holding, the appreciation thesis for Dearborn leans towards moderate growth. The quick sale times and minimal price reductions suggest that property values are likely to remain stable, if not increase gradually. However, the realistic expectation is that appreciation will not be rapid, but rather a slow and steady process. Investors should prepare for an environment where capital gains are modest, relying instead on rental income and potentially refinancing opportunities as interest rates evolve.
The data points to a balanced market, where neither buyers nor renters are exerting overwhelming pressure. Landlords can expect to maintain occupancy levels without significant concessions, while small-portfolio investors can anticipate a steady, albeit not explosive, rise in property values. This stability is particularly valuable in a broader economic context that may introduce volatility.
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.