Section 8 Fair Market Rent (FMR) for ZIP 48131 - 2027

Location: Monroe, MI | Metro: Monroe, MI MSA

Investment Score for ZIP 48131

D
Monthly Rent (2BR)
$1,460
Median Price (2BR)
$206,393
1% Rule
0.71%
Annual Yield
8.49%

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$1,020
1 Bedroom$1,120
2 Bedrooms$1,460
3 Bedrooms$1,790
4 Bedrooms$2,410
5 Bedrooms$2,796
6 Bedrooms$3,132
7 Bedrooms$3,383
8 Bedrooms$3,552

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,460 $206,393 0.71% D
3BR $1,790 $311,512 0.57% F
4BR $2,410 $371,995 0.65% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
8,637
Median Household Income
$85,747
Housing Units
3,852
Renter Percentage
30.4%
Occupancy Rate
94.9%
Renter Occupied
1,112

The ZIP code 48131, encompassing Dundee, Michigan, presents a dynamic rental market. With a Fair Market Rent (FMR) of $1280 for the fiscal year 2024 and a reported market rent of $1,243 according to the Census ACS, it's evident that the rental market is closely aligned with the government's assessment of fair rents. This suggests stability and a healthy equilibrium between what tenants can afford and what landlords charge.

A key indicator of market health is the price-cut share, which stands at 0.2%. This figure implies that very few landlords are forced to reduce their rental rates to attract tenants, indicating strong demand relative to supply. The fact that the days on market (DOM) for rentals is listed as N/A further supports the idea that units are leased quickly, reinforcing the notion of a robust tenant base.

The median home value in ZIP 48131 is $286,077. While this figure alone doesn't provide a complete picture of the housing market, it can be inferred that homeownership remains accessible to many residents. However, the significant 30.4% renter share suggests that a considerable portion of the population prefers or needs to rent rather than buy. This high percentage of renters can indicate long-term housing pressure, as it signals a persistent demand for rental properties. Landlords and small-portfolio investors should take note of this trend, as it suggests a steady demand for rental units in the area.

In summary, ZIP 48131 appears to be a market where demand for rentals is robust, and the relatively low price-cut share indicates that supply is not outpacing demand. The substantial renter share points to ongoing housing pressure, making it a viable market for those interested in rental investments. These dynamics create an environment where landlords can maintain competitive rents without resorting to frequent price reductions, ensuring a stable income stream for property owners.

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.