Section 8 Fair Market Rent (FMR) for ZIP 48185 - 2027

Investment Score for ZIP 48185

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	$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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,190	$98,780	1.2%	A
2BR	$1,490	$178,942	0.83%	C
3BR	$1,810	$247,017	0.73%	D
4BR	$1,970	$359,606	0.55%	F
5BR	$2,285	$331,775	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48185 (Westland, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48185 in 2026 is set at $1420 for a two-bedroom unit, which represents 28.0% of the median household income of $60,854. This suggests that the rent for a two-bedroom unit is relatively affordable for households earning the median income. However, the actual rental market price for a two-bedroom unit, based on Zillow data, is significantly higher at $175,270, which translates to a price-to-FMR ratio of 10.3x. This means that the actual market rent for a two-bedroom unit is approximately $14,000 per year, far exceeding the FMR of $1420 per month. Given these figures, Section 8 voucher holders face significant constraints in finding suitable housing. The voucher amount may not cover the actual market rent, leading to potential difficulties in securing housing units. Landlords who accept vouchers might need to consider offering additional incentives or amenities to attract tenants given the disparity between FMR and market rates. #### Affordability & Renter Profile ZIP code 48185 has a population of 48,530, with 43.2% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate stands at 94.6%, suggesting that the rental market is quite tight, with very few vacant units available. Given the high proportion of renters and the low vacancy rate, it is likely that many residents are facing affordability challenges, especially those relying on Section 8 vouchers. The median household income of $60,854 provides some context for the economic profile of the area. With 28.0% of the median income allocated towards a two-bedroom unit, the remaining 72.0% must cover all other living expenses. This implies that many residents, particularly those receiving Section 8 assistance, may be living on a tight budget. The high price-to-FMR ratio further exacerbates the affordability issue, making it difficult for voucher holders to find units that landlords will accept at the voucher rate. #### Investor Angle From an investor perspective, the ZIP code 48185 presents both opportunities and challenges. The tight rental market with a high occupancy rate of 94.6% suggests strong demand for rental properties. However, the high price-to-FMR ratio of 10.3x indicates that the actual market rent is much higher than the FMR. For investors focusing on Section 8 vouchers, this means that they would need to accept lower rents compared to market rates to participate in the program. To determine if this ZIP code is cash-flow positive at FMR, we can compare the FMR to typical mortgage payments. Assuming a two-bedroom unit priced at $175,270 and using a conservative estimate of a 4.5% interest rate on a 30-year fixed mortgage, the monthly payment would be around $875. Adding property taxes (assuming 1.5% of the home value), insurance, and maintenance costs, the total monthly expense could be estimated at $1,200-$1,300. This is slightly above the FMR of $1420 for a two-bedroom unit, indicating that while it may be possible to break even or generate a small profit, the margin is thin. In terms of investment grade, the high occupancy rate and strong demand for rental properties suggest a stable market. However, the reliance on Section 8 vouchers, which often come with lower rents and administrative requirements, may reduce the attractiveness for investors seeking higher returns. The investment grade would be considered moderate, with potential for steady but not exceptionally high returns. #### Specific Actionable Insights 1. **Targeting Lower-Rent Units**: Investors should focus on acquiring properties that can be rented out at or below the FMR levels. For example, a one-bedroom unit with an FMR of $1130 may be more attractive for Section 8 voucher holders and easier to manage financially for landlords. 2. **Offering Incentives**: Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers could offer additional incentives such as utilities included, free parking, or other amenities to make their units more appealing to tenants. This could help offset the lower rent received through the voucher program. 3. **Improving Property Value**: Investing in property improvements that align with the needs of Section 8 tenants could increase the likelihood of acceptance by voucher holders. For instance, upgrading kitchen appliances, adding energy-efficient features, or enhancing the exterior appearance could make a unit more desirable. #### Bottom Line For Section 8-focused investors, the ZIP code 48185 presents a mixed picture. While the tight rental market and high occupancy rate indicate strong demand, the high price-to-FMR ratio poses significant challenges. The recommendation would be to **Hold** on existing investments and **Skip** new acquisitions unless they can be acquired at a price that allows for reasonable cash flow at FMR levels. Targeting lower-rent units and offering incentives could improve the chances of success in this market.

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.