Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,190 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 48152, which is part of Livonia, MI, and Wayne County, can be quite favorable for landlords if understood correctly. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $1470 per month for the fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in this area.
Local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,277 for a two-bedroom apartment. This indicates that the SAFMR is higher than the average market rent, which benefits landlords participating in the Section 8 program.
A voucher payment typically covers the difference between the SAFMR and the tenant's portion, which is generally 30% of their income. For instance, if a tenant's income is $1,500 per month, their contribution would be $450 (30% of $1,500). The remaining balance up to the SAFMR of $1470 would be covered by the Section 8 program, less any utility allowances. Utility allowances vary but are usually around $300 per month. Therefore, the landlord would receive the tenant's $450 plus the program's reimbursement, minus the utility allowance.
To illustrate, let’s assume the utility allowance is $300. In this case, the voucher would cover $1170 ($1470 - $300) of the rent. Adding the tenant's $450 contribution, the total monthly rent received by the landlord would be $1620. This is $343 above the local market rent of $1,277, indicating a surplus when compared to typical rental rates in the area.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 48152 would be a surplus of $343 per month. This surplus provides landlords with an incentive to participate in the Section 8 program, as they can potentially earn more than the average market rent while still ensuring their units remain affordable for low-income tenants.
Data Sources: FMR data from HUD (2027). 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.