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 | $1,070 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,190 | $118,764 | 1% | B |
| 2BR | $1,490 | $243,632 | 0.61% | D |
| 3BR | $1,810 | $333,224 | 0.54% | F |
| 4BR | $1,970 | $414,389 | 0.48% | F |
| 5BR | $2,285 | $458,805 | 0.5% | F |
U.S. Census Bureau data (2024)
A landlord considering Section 8 properties in ZIP 48154 (Livonia, MI) should follow these steps to make an informed decision:
Step 1: Determine if the Fair Market Rent (FMR) of $1,410 for fiscal year 2024 can cover the debt service on a property valued at $334,291.
If the monthly debt service is less than $1,410, then the answer is yes. For instance, if the mortgage payment is around $800-$900, the FMR comfortably covers this amount, making the investment viable.
If the monthly debt service exceeds $1,410, the answer is no. This would mean that the rental income under Section 8 does not sufficiently cover the mortgage payments and other expenses, leading to financial losses.
Step 2: Compare the market rent of $1,213 (as per Census ACS) with the FMR.
If the market rent is below the FMR, then the answer is yes. Landlords can potentially charge the higher FMR rate to Section 8 tenants, thus ensuring better financial returns compared to the average market rent.
If the market rent is above the FMR, the answer is no. This suggests that landlords might struggle to find tenants willing to pay the lower FMR rate, especially when market rates are higher.
Step 3: Evaluate the rental demand in the area. Consider whether the 9.3% of renters combined with a 7-day days-on-market (DOM) statistic indicates sufficient demand.
If the percentage of renters is high and the DOM is low, indicating quick turnover, then the answer is yes. A low DOM suggests that there is strong demand for rental properties in Livonia, which can be a positive sign for Section 8 investments.
If the percentage of renters is low and the DOM is high, then the answer is no. High DOM values suggest that properties take longer to rent out, which could indicate weak demand or difficulty in finding tenants.
In summary, the viability of purchasing a Section 8 property in ZIP 48154 depends on the answers to these three questions. If the FMR clears debt service, if market rent is below FMR, and if there is sufficient demand, then the investment is likely to be profitable. Otherwise, it may not meet financial expectations.
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.