Section 8 Fair Market Rent (FMR) for ZIP 48135 - 2027
Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
Investment Score for ZIP 48135
D
Monthly Rent (2BR)
$1,320
Median Price (2BR)
$167,262
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 | $950 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
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 |
$1,320 |
$167,262 |
0.79% |
D |
| 3BR |
$1,610 |
$215,843 |
0.75% |
D |
| 4BR |
$1,740 |
$242,777 |
0.72% |
D |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$67,294
To determine if you should buy in ZIP 48135 (Garden City, MI) for Section 8, follow this decision tree:
- Does FMR $1360 (zip FY 2024) clear debt service on a $200,485 property?
- If yes: The Fair Market Rent (FMR) of $1360 is sufficient to cover the debt service on a property valued at $200,485. This means that the rental income can support the mortgage payments and other expenses associated with owning the property.
- If no: The FMR of $1360 does not cover the debt service on a property valued at $200,485. In this case, purchasing for Section 8 would be financially unviable unless you can find ways to reduce costs or increase revenue.
- Is market rent $1,723 (ZORI) above, at, or below FMR?
- If above: The Zillow Observed Rent Index (ZORI) of $1,723 is higher than the FMR of $1360. This indicates that the market rent is favorable, and you could potentially earn more than the Section 8 payment cap.
- If at: The ZORI of $1,723 matches the FMR of $1360. This means that the market rent aligns with the Section 8 payment standard, making it a neutral point in your decision-making process.
- If below: The ZORI of $1,723 is lower than the FMR of $1360. This suggests that the market rent is below the Section 8 payment cap, which could indicate an overvalued FMR or a unique market situation.
- Are 20.9% renters + 9-day DOM enough demand?
- If yes: With 20.9% of the population being renters and an average Days on Market (DOM) of 9 days, there is a strong demand for rental properties. This combination suggests that properties will be occupied quickly, minimizing vacancy periods.
- If no: The 20.9% renters and 9-day DOM do not constitute enough demand. However, this scenario is unlikely given the relatively low DOM, indicating that properties are rented out swiftly.
- If it depends: The demand is present but varies based on other factors such as the type of property, its condition, and location within the zip code. A deeper analysis of these specifics might be required to make a final decision.
The decision to purchase a property in ZIP 48135 for Section 8 ultimately hinges on whether the FMR clears debt service and how the market rent compares to the FMR. Additionally, consider the strength of demand as indicated by the percentage of renters and the DOM. If all conditions are met favorably, then the answer is yes; otherwise, it depends on further details.
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.