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 | $1,180 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $214,609 | 0.76% | D |
| 3BR | $2,000 | $290,778 | 0.69% | D |
| 4BR | $2,170 | $371,540 | 0.58% | F |
| 5BR | $2,517 | $375,958 | 0.67% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 48150, which includes Livonia, Michigan, is set at $1470 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program, known officially as the Housing Choice Voucher program. It's important to note that this is not the actual rent you will receive; it's the ceiling on what can be charged to tenants participating in the program.
In comparison, the average market rent for the same area is listed at $1867. This is based on the Zillow Observed Rental Index (ZORI), which gives an idea of what typical renters might expect to pay in the open market. The difference between the FMR and the ZORI suggests that landlords might see a slight reduction in potential income when opting for Section 8 rentals, but it also indicates a significant demand for affordable housing options in the area.
The 10.8% renter share of the population in Livonia means that there are a considerable number of people who are already renting and may qualify for Section 8 assistance. This percentage translates into a substantial pool of potential tenants who could benefit from the program, ensuring a steady stream of applicants for your rental property.
If you're considering acquiring a new rental property, the median home value in Livonia is around $275,787. This figure should be used as a reference point for understanding the typical price range of properties in the area. It's crucial to factor in the acquisition cost along with the expected rental income when making investment decisions.
Before committing to a Section 8 rental, verify that your property meets the Housing Quality Standards (HQS). These standards ensure that the rental unit is safe and livable for tenants, covering everything from basic repairs to pest control. Compliance with HQS is mandatory for all Section 8 properties, and failing to meet these requirements can lead to penalties or disqualification from the 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.