Location: Monroe, MI | Metro: Monroe, MI MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 48162, located in Monroe, Michigan, within the Monroe, MI MSA metro area, reveals several key insights for landlords and small-portfolio investors.
First, the rent math does not work favorably for Section 8 tenants. The Fair Market Rent (FMR) set at $1100 for fiscal year 2024 is significantly below the market rent, which stands at $1,264 according to ZORI. This means that landlords might find it challenging to cover their costs solely through Section 8 rental assistance.
Second, the acquisition of properties in this ZIP code is relatively affordable. The median home value is $231,444, indicating that homes are priced reasonably for potential investors. However, the lack of data on days on market (DOM) and the fact that only 0.1% of listings involve a price cut suggest that the housing market here is stable but may lack liquidity, making property acquisition straightforward but resale potentially less so.
Third, there is a notable tenant demand. With a total population of 28,156 and a renter share of 23.4%, there are approximately 6,600 renters in the area. This figure represents a substantial pool of potential tenants for landlords and small-portfolio investors.
In conclusion, while the rent math poses a challenge due to the discrepancy between FMR and market rent, the acquisition cost remains favorable with a median home value of $231,444. The stable housing market and significant tenant demand provide a balanced opportunity for investment. Landlords should consider supplementing Section 8 rents with additional income sources or targeting the broader rental market to ensure profitability.
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.