Location: Monroe, MI | Metro: Monroe, MI MSA
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 | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $190,549 | 0.63% | D |
| 3BR | $1,450 | $254,292 | 0.57% | F |
| 4BR | $1,940 | $294,224 | 0.66% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 48133, located in Erie, MI, within the Monroe County County and Monroe, MI MSA metro area, reveals a favorable environment for cash flow. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1280, significantly higher than the reported market rent of $988 based on Census ACS data. This discrepancy indicates that voucher tenants can provide a substantial positive cash flow at the HUD FMR rate.
To further analyze the investment potential, consider the median home value in the area, which stands at $249,097. Using this figure, we can derive a rent-to-price ratio. Given the market rent of $988, the annual rent would be approximately $11,856, leading to a rent-to-price ratio of about 4.75%. This suggests that rental income is relatively low compared to home values, making ownership more attractive for long-term investments focused on property appreciation rather than immediate cash flow.
The dynamics between renting and buying are also important. However, with the median Days on Market (DOM) being N/A and the percentage of homes experiencing price cuts being N/A%, there isn't enough data to fully assess these trends. Despite this, the high FMR relative to market rents supports the idea that voucher holders can cover costs and generate profit without needing premium units.
The strongest angle for investors in this market is cash flow. With the HUD FMR well above the average market rent, landlords and small-portfolio investors can expect a steady stream of income from voucher tenants, ensuring financial stability and potentially higher returns than what the current market rent offers.
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.