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 | $970 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,080 | $188,317 | 0.57% | F |
| 2BR | $1,350 | $245,203 | 0.55% | F |
| 3BR | $1,640 | $167,658 | 0.98% | C |
| 4BR | $1,780 | $213,826 | 0.83% | C |
| 5BR | $2,065 | $289,854 | 0.71% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 48202 in Detroit, Michigan, for fiscal year 2024 is set at $1160. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you will receive; it's the ceiling for the rent subsidy.
In comparison, the local Zillow Observed Rental Index (ZORI) for ZIP 48202 is $1,424. This indicates that the average rent for properties in this area is higher than the Section 8 payment standard. If you decide to participate in the Section 8 program, you will be limited to the $1160 subsidy per month, which is lower than the market rate.
The demand for rental properties in this area is high, with 69.1% of residents being renters. This suggests a strong market for rentals, but it also means that competition for tenants can be fierce. By participating in Section 8, you are targeting a specific subset of renters who qualify for government assistance.
When acquiring a property for your first Section 8 rental, consider the average home value in ZIP 48202, which is around $177,380. This figure gives you an idea of the typical investment required to purchase a home in this area. Keep in mind that property values can vary significantly depending on the condition and location of the property.
Before you make the decision to enter the Section 8 program, verify that your property meets all the necessary requirements for eligibility. This includes ensuring that the property is safe, decent, and sanitary, as well as meeting any local housing codes. Compliance with these standards is mandatory and will help ensure that your application to the program is successful.
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.