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 | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $69,268 | 2.08% | A+ |
| 4BR | $1,560 | $143,803 | 1.08% | B |
| 5BR | $1,810 | $217,964 | 0.83% | C |
U.S. Census Bureau data (2024)
The ZIP code 48206 is a renter-heavy area with significant potential for Section 8 tenants. With a population of 15,227, nearly half (46.4%) of residents are renters, indicating a robust demand for rental properties. The median household income in this ZIP is $45,046, which suggests that the majority of residents are likely to qualify for housing assistance programs.
The market rent in ZIP 48206 is currently at $1,322 per month, representing approximately 35% of the median household income. This high percentage of income spent on rent highlights the financial strain many local residents face when trying to find affordable housing. In contrast, the Fair Market Rent (FMR) for the area, set at $1,100 per month for FY 2024, is lower than the current market rate, potentially making it challenging for landlords to cover costs without assistance.
The disparity between the market rent and the FMR indicates that there is a significant need for subsidized housing in the form of Section 8 vouchers. Landlords in ZIP 48206 can expect a steady stream of tenants seeking affordable housing options, particularly those who rely on government subsidies to meet their monthly rent obligations. Given the income levels and the current market conditions, these tenants will be looking for units that are priced at or near the FMR to ensure affordability.
To summarize, ZIP 48206 is well-suited for landlords willing to participate in the Section 8 program. The tenant profile will predominantly consist of individuals and families with low to moderate incomes, who require assistance to afford the local cost of living. By offering units at the FMR, landlords can attract and retain tenants who are eligible for housing vouchers, thereby stabilizing their cash flow and ensuring occupancy in a highly renter-dependent market.
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.