Section 8 Fair Market Rent (FMR) for ZIP 48188 - 2027

Investment Score for ZIP 48188

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	$1,340
1 Bedroom	$1,500
2 Bedrooms	$1,870
3 Bedrooms	$2,280
4 Bedrooms	$2,470
5 Bedrooms	$2,865
6 Bedrooms	$3,209
7 Bedrooms	$3,466
8 Bedrooms	$3,639

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
2BR	$1,870	$282,591	0.66%	D
3BR	$2,280	$386,810	0.59%	F
4BR	$2,470	$552,055	0.45%	F
5BR	$2,865	$692,925	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48188 (Canton, MI) #### Section 8 Voucher Dynamics In Canton, MI (ZIP 48188), the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1880 per month for the year 2026. This figure represents 18.4% of the median household income of $122,781, which is relatively low compared to national standards where the FMR is typically around 30% of the median income. The lower percentage suggests that voucher holders have a more favorable rent-to-income ratio, but it also means that landlords might face tighter margins when accepting vouchers. The FMRs for other bedroom sizes are as follows: - 0BR: $1340 - 1BR: $1490 - 3BR: $2300 - 4BR: $2490 These figures indicate that landlords who accept Section 8 vouchers must adhere to these rent caps, which can be significantly lower than market rates. For instance, the Zillow median price for a two-bedroom home in Canton is $277,920, which translates to a monthly mortgage payment far exceeding the FMR. This discrepancy highlights the financial constraints voucher holders face in finding suitable housing within their budget. #### Affordability & Renter Profile The population of Canton is 45,665, with 17.2% being renters. This indicates a relatively small rental market compared to the overall population, suggesting that the demand for rentals is not overwhelming. However, the high occupancy rate of 96.7% implies that the available rental units are mostly occupied, creating a competitive environment for both tenants and landlords. Given the median household income of $122,781, the rental market in Canton is generally considered affluent. The majority of residents likely have the financial means to afford market-rate housing, making the rental market tight for those relying on Section 8 vouchers. The affordability gap is evident in the Price-to-FMR ratio of 12.3x, meaning that market prices are substantially higher than what is covered by the FMR. #### Investor Angle From an investor perspective, the FMRs in Canton do not provide a significant margin for profit. For example, a two-bedroom unit priced at $1880 would generate a monthly income that is only a fraction of the potential market value. Given the Zillow median price of $277,920 for a similar property, the monthly mortgage payment alone could exceed the FMR cap, especially considering additional costs such as maintenance, utilities, and property taxes. The investment grade in this ZIP code is likely to be low due to the tight rental market and the high cost of properties relative to the FMR. Investors should carefully consider the financial implications of accepting Section 8 vouchers, as they will need to balance the lower rents against the higher acquisition and operational costs. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high Price-to-FMR ratio, investors should focus on smaller units like one-bedroom apartments, which have an FMR of $1490. These units are more likely to be affordable for voucher holders while still providing some margin for profit. 2. **Consider Multi-Family Properties**: Single-family homes may be too expensive for voucher holders, given the high median home price. Multi-family properties, such as duplexes or small apartment buildings, could offer better opportunities for cash flow, as they allow for spreading costs across multiple units. 3. **Utilize Vacant Units Strategically**: With an occupancy rate of 96.7%, there is a limited number of vacant units. Investors should prioritize maintaining a high-quality living environment to attract and retain tenants, particularly those with Section 8 vouchers. #### Bottom Line For investors focusing on Section 8 properties, Canton, MI (ZIP 48188) presents a challenging market. The high cost of properties and the tight rental market make it difficult to achieve positive cash flow. Therefore, the recommendation is to **Skip** this ZIP code unless you are willing to accept lower returns and operate under constrained financial conditions. If you decide to invest, focus on smaller units and multi-family properties to optimize your chances of profitability.

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.