Location: Monroe, 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 | $980 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $277,978 | 0.49% | F |
| 3BR | $1,670 | $312,325 | 0.53% | F |
| 4BR | $1,820 | $413,529 | 0.44% | F |
| 5BR | $2,111 | $431,350 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP 48134, located in Flat Rock, MI, within the Monroe, MI MSA metro area, serves as an ideal appreciation play within a Section 8 portfolio strategy. The key indicators that support this classification include a low 0.2% price-cut share and a non-applicable day DOM (Days on Market), which suggests strong demand and minimal supply pressure.
The spread between the Fair Market Rent (FMR) of $1270 and the actual market rent of $1,454 indicates a slight underperformance in terms of cash flow. However, this is mitigated by the high median home value of $309,077, which points to significant equity appreciation potential over time. Landlords should focus on the long-term value of their properties rather than short-term rental income discrepancies.
Additionally, the ZIP code has a 15.7% renter share, which is relatively low but still substantial enough to ensure a steady stream of tenants. This, combined with a median income of $92,076, suggests that residents have the financial stability to meet rental obligations and potentially seek higher-quality housing options, driving up property values.
To summarize, while ZIP 48134 may not offer the highest cash flow due to the slightly lower FMR compared to market rents, it excels as an appreciation play. The robust median home value, coupled with strong local demand, makes it a valuable addition to any Section 8 portfolio aimed at capital growth.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.