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 | $1,000 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $173,063 | 0.8% | C |
| 3BR | $1,690 | $279,867 | 0.6% | D |
| 4BR | $1,840 | $403,474 | 0.46% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 48173, located in Brownstown, MI, within Wayne County and the Detroit-Warren-Livonia, MI HUD Metro FMR Area, reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1,210 per month for fiscal year 2024. In contrast, the Census American Community Survey (ACS) reports the market rent at $1,164 per month.
Voucher tenants in this area will cashflow at the HUD FMR rate, as the FMR exceeds the current market rent. This indicates that landlords can expect a positive cashflow when renting to voucher holders under the current HUD guidelines.
To derive the rent-to-price ratio, we use the median home value of $267,073. With a monthly rent of $1,164, the annual rent is approximately $13,968. Dividing the annual rent by the median home value gives us a rent-to-price ratio of about 0.0052 or 0.52%. This low ratio suggests that the rental income generated is relatively modest compared to the purchase price of homes in the area, which could influence the decision between buying and renting.
The data does not provide a median Days on Market (DOM) or the percentage of price cuts shared among listings. However, these metrics would be crucial in understanding the local real estate market's health and how it impacts the decision-making process for investors considering either the rental or purchase market.
The strongest investor angle in ZIP 48173 is cashflow. Given the positive cashflow potential from voucher tenants and the current rental rates, landlords can expect steady and reliable income from their properties without significant risk or investment in premium units.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.