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 | $880 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,490 | $48,785 | 3.05% | A+ |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP 48211 for Section 8 properties, follow these steps:
1) Does the Fair Market Rent (FMR) of $1,100 cover the debt service on a property valued at $56,318?
To determine if the FMR covers the debt service, calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at 4.5%, the monthly principal and interest payment would be approximately $275. Adding property taxes, insurance, and maintenance costs can bring the total monthly debt service to around $350-$400. The FMR of $1,100 easily exceeds this amount, covering all debt service costs with a surplus.
2) How does the market rent of $1,044 compare to the FMR?
The market rent of $1,044 is slightly below the FMR of $1,100. This suggests that there is a small margin where landlords could potentially charge more than the market rate but still remain within the limits set by the Section 8 program. However, it also indicates that landlords might face some competition from non-subsidized rentals.
3) Is the rental demand sufficient with 49.1% of residents being renters and the number of days on market (DOM) being N/A?
The percentage of renters at 49.1% is significant and suggests a robust rental market. However, the absence of data on the average days on market (DOM) makes it difficult to assess how quickly properties are rented out. Without this information, it's challenging to gauge the urgency of the rental demand.
Decision Tree:
In summary, ZIP 48211 presents a viable opportunity for Section 8 investments, particularly if your primary concern is covering debt service. However, the slight gap between market rent and FMR, along with the lack of DOM data, introduces some uncertainty regarding profitability and demand.
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.