Section 8 Fair Market Rent (FMR) for ZIP 48183 - 2027

Investment Score for ZIP 48183

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$910
1 Bedroom	$1,020
2 Bedrooms	$1,270
3 Bedrooms	$1,550
4 Bedrooms	$1,680
5 Bedrooms	$1,949
6 Bedrooms	$2,183
7 Bedrooms	$2,358
8 Bedrooms	$2,476

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,270	$174,190	0.73%	D
3BR	$1,550	$256,853	0.6%	D
4BR	$1,680	$337,800	0.5%	F
5BR	$1,949	$360,765	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48183 (Woodhaven, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Woodhaven, MI, as per the 2026 data, is set at $1220 for a two-bedroom unit, which represents 17.5% of the median household income of $83,508. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the income levels in the area. However, the actual rents in the market can be significantly higher, as evidenced by the Zillow median price for a two-bedroom home being $171,034. The price-to-FMR ratio of 11.7x suggests that the actual rental prices in the market are much higher than the FMR. Given these figures, it is likely that many landlords will find the FMR insufficient to cover their costs, especially when considering the median home value. For instance, if a landlord were to rent out a property valued at $171,034, they would need to charge well above the FMR to achieve a reasonable return on investment. This means that voucher holders might face challenges in finding properties that accept their vouchers due to the high cost of living in the area. #### Affordability & Renter Profile With a population of 41,765 and a renter percentage of 23.8%, Woodhaven has a relatively small but significant rental market. The occupancy rate of 95.9% indicates that the rental market is quite tight, with very few vacant units available. This tight market condition suggests that there is strong demand for rental properties, making it a competitive environment for both tenants and landlords. The median household income of $83,508 implies that the typical resident in Woodhaven is reasonably well-off, which could mean that the majority of renters are also likely to have stable incomes. However, the FMR for a two-bedroom unit being only $1220, which is 17.5% of the median income, indicates that a portion of the residents may still struggle with affordability. Given the high price-to-FMR ratio, it is clear that the market is not particularly affordable for those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the FMRs do not appear to be sufficient to generate positive cash flow on properties valued at the median Zillow price. For example, a two-bedroom unit priced at $171,034 would require a monthly rent of approximately $1,425 to break even, assuming a 5% annual return on investment. This is nearly double the FMR of $1220, indicating that landlords who rely solely on Section 8 vouchers may struggle to cover their expenses. The investment grade for this ZIP code would be considered low, given the disparity between the FMR and the actual market rents. Investors looking to enter this market should be prepared for lower returns unless they can secure tenants willing to pay above the FMR. Additionally, the high occupancy rate suggests that there is limited opportunity for new rental properties to enter the market without facing competition from existing units. #### Specific Actionable Insights 1. **Focus on Properties Below Median Value**: Investors should consider acquiring properties below the median Zillow price of $171,034 to ensure better cash flow. For instance, a property valued at around $120,000 would require a monthly rent of about $1,000 to break even, which is closer to the FMR of $1220 for a two-bedroom unit. 2. **Diversify Tenant Base**: To mitigate the risk of relying solely on Section 8 vouchers, investors should aim to diversify their tenant base. This could include offering a mix of market-rate and subsidized units, or targeting a broader range of income levels within the community. 3. **Consider Multi-Family Units**: Given the higher FMRs for larger units, multi-family properties such as duplexes or small apartment buildings might offer better opportunities for positive cash flow. A three-bedroom unit with an FMR of $1490 could potentially be more attractive to landlords, especially if they can leverage the higher rent to cover expenses. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 48183 (Woodhaven, MI) is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow using only Section 8 vouchers. While there is a significant demand for rental properties, the financial constraints imposed by the FMRs suggest that investors would be better served by exploring other markets where the FMRs are more aligned with the actual rental prices.

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.