Section 8 Fair Market Rent (FMR) for ZIP 48186 - 2027

Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area

Investment Score for ZIP 48186

B
Monthly Rent (2BR)
$1,370
Median Price (2BR)
$122,119
1% Rule
1.12%
Annual Yield
13.46%

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$980
1 Bedroom$1,100
2 Bedrooms$1,370
3 Bedrooms$1,670
4 Bedrooms$1,810
5 Bedrooms$2,100
6 Bedrooms$2,352
7 Bedrooms$2,540
8 Bedrooms$2,667

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 $1,370 $122,119 1.12% B
3BR $1,670 $213,780 0.78% D
4BR $1,810 $269,896 0.67% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
35,103
Median Household Income
$65,187
Housing Units
14,562
Renter Percentage
31.3%
Occupancy Rate
92.6%
Renter Occupied
4,225

The classification of ZIP 48186 in Westland, Michigan, reveals a mixed profile that leans towards a steady cashflow zone rather than a high-yield/low-stability market. The Federal Market Rent (FMR) for the fiscal year 2024 is set at $1,270, which is higher than the market rent of $1,148. This indicates a potential for above-average rental yields when considering the FMR as a benchmark.

However, the median home value of $197,720 suggests a more stable housing market, where quick flips might not be as profitable due to higher property values and slower appreciation rates. The median income of $65,187 supports a moderate level of financial stability among residents, providing a reliable tenant pool who can afford the average rent.

On the stability axis, the data points to a fairly secure rental environment. With 31.3% of the population being renters, there is a significant demand for rental properties, but it's not overwhelmingly high, which could indicate a more balanced market. Additionally, the days on market (DOM) of 12 days suggest that rental units are typically occupied quickly, reducing vacancy risks.

To summarize, ZIP 48186 offers a moderate yield potential with an FMR of $1,270 compared to the market rent of $1,148, and a median home value of $197,720. The stability indicators, such as a 31.3% rental rate and a median income of $65,187, point to a market that is less prone to volatility and more suited for steady cashflow investments. While it's not a low-stability/high-yield market, it provides a reasonable balance that can be attractive to landlords and small-portfolio investors looking for consistent returns.

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.