Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
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 | $980 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $153,779 | 0.88% | C |
| 3BR | $1,660 | $208,936 | 0.79% | D |
| 4BR | $1,800 | $307,871 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 48195, located in Southgate, MI, presents a dynamic housing market influenced by the interplay between rental and ownership segments. With a Fair Market Rent (FMR) of $1270 for the fiscal year 2024, the area offers an affordable option for renters compared to the Zillow Observed Rental Index (ZORI) of $1,725, indicating a substantial gap between subsidized and market rents. This discrepancy suggests a robust rental market that can support various income levels, particularly those eligible for Section 8 assistance.
The low price-cut share of 0.2% and a relatively short Days on Market (DOM) of 21 days point towards a balanced or slightly tight market condition for homeownership. Homeowners are generally not compelled to reduce their asking prices significantly, and homes are selling quickly, reflecting a steady demand for properties in the area. The median home value stands at $192,311, which is within reach for many first-time buyers and families seeking stable housing options.
A significant 32.8% of the population in ZIP 48195 are renters, a figure that underscores the importance of rental housing in the local economy. This high renter share implies ongoing housing pressure, as a considerable portion of the residents rely on the rental market for accommodation. Over the long term, this dynamic could suggest a persistent need for rental units, driving demand and potentially influencing future property values and investment opportunities.
In summary, ZIP 48195 exhibits characteristics of a market where demand is closely aligned with supply, leaning slightly towards a tighter market for homeownership. The high renter share highlights the significance of rental housing and indicates a potential for sustained rental demand, which is critical for both landlords and small-portfolio investors looking to capitalize on the local housing dynamics.
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.