Location: Livingston County, MI | Metro: Ann Arbor, 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 | $1,230 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $272,580 | 0.55% | F |
| 3BR | $1,930 | $366,395 | 0.53% | F |
| 4BR | $2,160 | $467,563 | 0.46% | F |
U.S. Census Bureau data (2024)
The median household income in ZIP code 48137, which includes Gregory, Michigan, stands at $78,973. At first glance, the market rate for rent at $1,084 might seem manageable for residents. However, when considering the Full Monthly Rent (FMR) standard set for the Housing Choice Voucher Program at $1,710 for fiscal year 2024, the financial landscape becomes more complex.
The disparity between the market rate and the FMR indicates an affordability gap for potential renters. A household earning the median income would find it challenging to meet the higher FMR without significant budget adjustments. This suggests that many renters in the area might lean towards finding properties at the lower market rate rather than those requiring the higher voucher payment.
Given that only 11.8% of the 4,157 population are renters, competition among landlords is likely to be intense. Landlords must carefully consider their pricing strategies to attract tenants in a market where affordability is a critical factor.
Takeaway: For landlords and small-portfolio investors in ZIP 48137, focusing on cash-paying tenants who can afford the market rate of $1,084 may be more practical. While voucher programs offer a guaranteed source of income, the higher FMR of $1710 could deter many local households. Landlords should weigh the benefits of voucher stability against the risk of reduced tenant interest due to higher costs. In a tight rental market, attracting cash-paying tenants who fit the local income profile can be a strategic advantage.
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.