Location: Livingston County, MI | Metro: Ann Arbor, MI MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,230 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,500 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,500 | $278,387 | 0.54% | F |
| 3BR | $1,910 | $383,375 | 0.5% | F |
| 4BR | $2,150 | $496,310 | 0.43% | F |
| 5BR | $2,494 | $612,711 | 0.41% | F |
U.S. Census Bureau data (2024)
The ZIP code 48189, located in Whitmore Lake, MI, presents an interesting mix of yield and stability factors that are crucial for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1290. This FMR is significantly lower than the current market rent of $2,100, indicating a potential for higher rental yields if properties can be leased at market rates. However, the median home value in the area stands at $354,100, which is relatively high compared to the FMR, suggesting that the cost of acquiring investment properties could be substantial.
On the stability front, ZIP 48189 has a rental population of 20.7%, which is moderate and implies a reasonable level of demand for rental properties. Unfortunately, the average number of days on the market (DOM) is not available, which would have been useful for assessing how quickly rental units can be filled. The median household income in the area is $87,145, providing a solid economic foundation for tenants' ability to pay rent.
Given these figures, ZIP 48189 leans towards being a steady-cashflow zone. While the potential for high yields exists due to the disparity between FMR and market rents, the high median home value suggests that property acquisition costs are also elevated. The moderate rental population percentage indicates a stable tenant base, and the decent median income supports the likelihood of timely rent payments. These conditions make it less suitable for a high-yield/low-stability 'flip-style' market, where quick turnover and high-risk tolerance are more common. Instead, the area offers a balanced approach with reliable cash flow and the possibility of above-average returns, making it attractive for investors seeking long-term, stable investments.
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.