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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,360 | $41,902 | 3.25% | A+ |
| 3BR | $1,660 | $54,931 | 3.02% | A+ |
| 4BR | $1,800 | $62,106 | 2.9% | A+ |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 48205 in Detroit, MI, for fiscal year 2024 is set at $1,180. This figure represents the payment standard for Section 8 housing vouchers in your area, meaning that if you participate in the program, this is the maximum amount that the government will pay toward a tenant's rent. It's important to note that this does not necessarily reflect the actual rent you can charge, but rather the subsidy limit.
In comparison, the local market rent for ZIP 48205 is currently at $1,244, based on the Zillow Observed Rental Index (ZORI). This indicates that the average rent for similar properties in your area slightly exceeds the Section 8 payment standard. As a landlord, you should be prepared to either accept a lower rent or cover the difference between the FMR and the market rate.
The demand for rentals in ZIP 48205 is robust, with 49.4% of residents being renters. This high percentage suggests a significant portion of the population is looking for affordable housing options, making it a viable market for Section 8 properties.
The median household income in ZIP 48205 is approximately $53,128. This figure can help you understand the economic context of potential tenants and the general affordability of housing in the area. When acquiring a property for a Section 8 rental, consider this income level to ensure that the property value aligns with the financial capabilities of the neighborhood.
Before proceeding with a Section 8 rental, verify that your property meets the minimum housing quality standards known as Housing Quality Standards (HQS). These standards ensure that the unit is safe, decent, and sanitary, which is a requirement for participation in the program. This step is crucial as it directly impacts your eligibility to receive the subsidy payments.
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.