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 | $1,470 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $2,710 |
| 5 Bedrooms | $3,144 |
| 6 Bedrooms | $3,521 |
| 7 Bedrooms | $3,803 |
| 8 Bedrooms | $3,993 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $248,508 | 0.82% | C |
| 3BR | $2,500 | $302,043 | 0.83% | C |
| 4BR | $2,710 | $378,381 | 0.72% | D |
| 5BR | $3,144 | $477,328 | 0.66% | D |
U.S. Census Bureau data (2024)
The median income in ZIP code 48128, located in Dearborn, Michigan, stands at $101,037. This figure provides a baseline for understanding the financial capabilities of the average household in this area. The market rate for rent, according to the Census ACS, is $1,533 per month. Given the median income, a household would need to dedicate approximately 18.5% of their gross monthly income to cover this rent expense. This calculation assumes a two-monthly income cycle, which is standard practice for assessing rental affordability.
In comparison, the Fair Market Rent (FMR) for ZIP 48128 in fiscal year 2024 is set at $1,860, which is higher than the current market rate. For households relying on Housing Choice Vouchers, this means they could potentially afford slightly pricier units, though the actual cost would still be capped at the voucher amount. Landlords who accept vouchers should note that the voucher payment standard is higher than the typical market rate, offering a slight premium over current rents.
With only 14.9% of the 12,624 population being renters, competition among landlords is relatively low compared to areas with a higher percentage of renters. However, the affordability gap between the median income and both the market and voucher rates highlights a significant challenge for many renters. The difference between the median income and the required rent payments suggests that while some households can comfortably afford the current market rate, others may struggle, especially when factoring in other living expenses.
Landlords considering their strategy for accepting vouchers versus cash-paying tenants should weigh the benefits of guaranteed rent through the voucher program against the potential for higher rents from cash-paying tenants. The voucher program ensures consistent income and reduces the risk of non-payment, but it caps the rent at the FMR level. Cash-paying tenants might offer more flexibility in pricing, but they also come with the inherent risks associated with market fluctuations and tenant default.
The takeaway for landlords is that while the voucher payment standard offers a stable income source, it is slightly above the current market rate. This means that landlords who accept vouchers could still attract tenants without the need to undercut the market price significantly. However, the relatively low percentage of renters in the area indicates that there is room to increase rents for cash-paying tenants if the market supports such a move. Landlords must balance these factors to optimize their investment strategy.
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.