Section 8 Fair Market Rent (FMR) for ZIP 48187 - 2027

Investment Score for ZIP 48187

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	$1,300
1 Bedroom	$1,450
2 Bedrooms	$1,810
3 Bedrooms	$2,200
4 Bedrooms	$2,390
5 Bedrooms	$2,772
6 Bedrooms	$3,105
7 Bedrooms	$3,353
8 Bedrooms	$3,521

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	$1,810	$253,932	0.71%	D
3BR	$2,200	$359,649	0.61%	D
4BR	$2,390	$503,473	0.47%	F
5BR	$2,772	$734,820	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48187 (Canton, MI) #### Section 8 Voucher Dynamics In Canton, MI (ZIP code 48187), the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1720 per month for the year 2026. This figure represents 17.2% of the median household income in the area, which stands at $120,321. However, it is important to note that the actual rental prices in the market can be significantly higher. The Zillow median price for a two-bedroom home in Canton is $255,801, which translates to a monthly rent of approximately $1249 if we assume a 5% annual rental yield. This is much lower than the FMR but still higher than what many voucher holders might be able to afford due to the strict cap on rent subsidies. The constraints for voucher holders in Canton include finding landlords willing to accept Section 8 vouchers, as well as ensuring that the rent does not exceed the FMR. Given the high median household income, there is a strong likelihood that landlords may prefer tenants who can pay market rates rather than those relying on vouchers. This could limit the availability of housing options for voucher holders. #### Affordability & Renter Profile Canton has a relatively affluent population, with a median household income of $120,321. Despite this, 28.6% of the residents are renters, indicating a significant demand for rental properties. The occupancy rate of 93.9% suggests that the rental market is quite tight, with limited vacancies available. This tight market means that landlords have a degree of pricing power, and they may be reluctant to accept Section 8 vouchers unless they are forced to do so by a lack of other options. Given the high median income and the fact that the FMR for a two-bedroom unit is only 17.2% of the median household income, it is likely that most renters in Canton can afford market-rate rents without assistance. This makes the market less attractive for Section 8 voucher holders, who may struggle to find affordable housing within the FMR limits. #### Investor Angle From an investor perspective, the key metric to consider is whether the rental income generated at the FMR level is sufficient to cover the costs associated with owning and managing a property. In Canton, the FMR for a two-bedroom unit is $1720 per month. To determine if this is cash-flow positive, we need to look at the typical expenses involved in property ownership. Assuming a mortgage payment of around $1249 per month (based on the Zillow median price of $255,801 and a 5% annual rental yield), property taxes, insurance, maintenance, and other miscellaneous costs would need to be covered by the remaining rental income. Property taxes in Wayne County are typically around 1.5%, which would amount to approximately $384 per month ($255,801 * 1.5% / 12). Insurance costs can vary widely, but a reasonable estimate might be $100 per month. Maintenance and miscellaneous costs might total another $200 per month. Adding these up, the total monthly cost would be around $1933 ($1249 + $384 + $100 + $200). Since the FMR of $1720 is below the estimated total monthly cost of $1933, it is clear that investing in Canton at the FMR level would not be cash-flow positive. This makes the area less attractive for investors focusing solely on Section 8 vouchers. #### Investment Grade Given the high costs of ownership and the low FMR relative to these costs, the investment grade for Canton when considering Section 8-focused investments is poor. The tight rental market and the preference for market-rate tenants further reduce the attractiveness of this ZIP code for such investors. #### Specific Actionable Insights 1. **Focus on Larger Units**: While the FMR for a two-bedroom unit is not sufficient to cover costs, larger units like three-bedroom and four-bedroom apartments may offer better opportunities. The FMR for a three-bedroom unit is $2100, and for a four-bedroom unit, it is $2280. These higher FMRs could potentially cover the costs of ownership, especially if the property is large enough to accommodate multiple families. 2. **Consider Alternative Subsidies**: Investors should explore alternative subsidy programs that may offer higher rental assistance levels. For example, some local government programs or non-profit organizations might provide additional support to low-income renters, making the overall rental income more viable. 3. **Target Areas with Lower Median Income**: If the goal is to focus on Section 8 vouchers, investors might want to look at areas within Wayne County that have a lower median household income. This would make the FMR a larger percentage of the median income, increasing the likelihood of finding tenants who can afford the rent with their vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for Canton, MI (ZIP code 48187) is to **skip** this market. The high costs of ownership and the low FMR relative to these costs make it unviable for generating positive cash flow. Additionally, the tight rental market and preference for market-rate tenants further diminish the potential for success in this ZIP code. Investors should consider other areas within Wayne County or neighboring counties where the median income is lower and the FMR is more aligned with the costs of ownership.

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.