Location: Detroit-Warren-Livonia, 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 | $880 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $128,505 | 0.96% | C |
| 3BR | $1,500 | $165,943 | 0.9% | C |
| 4BR | $1,630 | $179,203 | 0.91% | C |
| 5BR | $1,891 | $186,641 | 1.01% | B |
U.S. Census Bureau data (2024)
The Section 8 program's financial dynamics in ZIP code 48146, specifically within Lincoln Park, Michigan, reveal a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the fiscal year 2024 is set at $1,140, while the market rent, measured by Zillow's ZORI index, stands at $1,261. This creates a $121 difference, representing approximately a 10.6% gap between what landlords can charge voucher tenants and the open-market rate.
Given that the FMR is lower than the market rent, landlords who participate in the Section 8 program must accept a rental rate that is below the prevailing market conditions. In Lincoln Park, where the median home value is $150,839 and the median income is $58,616, the decision to rent to voucher tenants comes with an opportunity cost. Landlords forfeit $121 per month per unit to serve these tenants, which could otherwise be earned by renting to the general market. This scenario makes it less profitable for landlords to participate in the program, especially considering the additional administrative requirements and potential delays in receiving rent payments.
Despite the gap, participating in Section 8 can still be a strategic move for landlords looking to ensure consistent occupancy and stable cash flow. However, they must carefully consider the economics of their properties. For instance, if the operating costs and mortgage payments are high relative to the FMR, accepting a Section 8 tenant might not be financially viable. Additionally, with only 31.2% of residents being renters, the competition for rental units is likely less intense compared to areas with higher percentages of renters. Therefore, landlords should weigh the benefits of guaranteed tenancy against the reduced rental income when deciding whether to participate in the Section 8 program.
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.