Section 8 Fair Market Rent (FMR) for ZIP 48208 - 2027

Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area

Investment Score for ZIP 48208

Monthly Rent (2BR)

$1,180

Median Price (2BR)

$302,718

1% Rule

0.39%

Annual Yield

4.68%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,180	$302,718	0.39%	F
3BR	$1,440	$142,464	1.01%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

8,037

Median Household Income

$36,194

Housing Units

5,171

Renter Percentage

65.7%

Occupancy Rate

76.9%

Renter Occupied

2,614

Detroit, MI, specifically ZIP code 48208, presents a unique opportunity for real-estate investors interested in affordable housing markets. This area is characterized by its mix of residential properties and a significant portion of renters, making it an attractive location for those looking to capitalize on rental demand.

The Fair Market Rent (FMR) for ZIP 48208 in fiscal year 2024 is set at $1,100, providing a benchmark for rental pricing.
The actual market rent, as indicated by the Zillow Observed Rent Index (ZORI), stands at $1,321, suggesting that rents are slightly above the government's fair market assessment.
The median home value in the area is $131,426, which is relatively low compared to other parts of Detroit, indicating potential for property appreciation.
Renters make up 65.7% of the population in ZIP 48208, highlighting a strong demand for rental properties.
The median household income in the area is $36,194, reflecting the economic context in which tenants operate and their ability to pay market rents.

Investors should note that the disparity between FMR and ZORI suggests a market where rents are already higher than government estimates, potentially indicating a robust rental market. The high renter share points towards a continued need for rental properties, while the low median home value could be a sign of future growth in property values. However, the median income being lower than average might influence affordability and tenant stability, requiring careful consideration of rental pricing strategies.

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.