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 | $770 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $88,652 | 1.21% | A |
| 3BR | $1,300 | $98,493 | 1.32% | A |
| 4BR | $1,410 | $124,105 | 1.14% | B |
U.S. Census Bureau data (2024)
The ZIP code 48209, located in Detroit, MI, falls within the larger Detroit-Warren-Livonia, MI HUD Metro FMR Area. This area sets the Fair Market Rent (FMR) for 2024 at $1,100 for ZIP 48209. Comparatively, the actual market rent in this ZIP is slightly lower at $1,003. The median home value is notably low at $93,243, while the renter share is relatively high at 38.8%. These figures indicate that 48209 is likely a value pocket within its metro area.
A value pocket is characterized by below-average property values and higher-than-average renter populations, making it attractive for Section 8 tenants who might find the cost of housing more manageable. In the context of the Detroit-Warren-Livonia, MI HUD Metro FMR Area, where FMRs are set higher, ZIP 48209 stands out due to its lower market rents and significantly lower home values. This combination suggests that landlords and small-portfolio investors could benefit from focusing on this ZIP, as it aligns well with the needs of low-income renters covered under the Section 8 program.
The divergence between the FMR and the actual market rent in 48209 also points towards a potential sweet spot for Section 8 participation. Landlords can charge the set FMR, which is above the market rate, thereby potentially increasing their rental income without the need to invest heavily in property improvements. Additionally, the high renter share indicates a strong demand for rental properties, which is favorable for those looking to enter or expand in the rental market.
In summary, based on the provided figures, ZIP 48209 appears to be a value pocket within the Detroit-Warren-Livonia, MI HUD Metro FMR Area. It offers opportunities for landlords and small-portfolio investors due to its alignment with the financial capabilities of Section 8 tenants and the presence of a significant renter population.
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.