Section 8 Fair Market Rent (FMR) for ZIP 48212 - 2027

Investment Score for ZIP 48212

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	$830
1 Bedroom	$920
2 Bedrooms	$1,150
3 Bedrooms	$1,400
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

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	$1,150	$116,370	0.99%	C
3BR	$1,400	$112,327	1.25%	A
4BR	$1,520	$170,286	0.89%	C
5BR	$1,763	$191,531	0.92%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48212 (Hamtramck, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48212 is set by HUD for 2026, with the following figures: - 0BR: $780 - 1BR: $870 - 2BR: $1090 (which is 34.3% of the median household income) - 3BR: $1330 - 4BR: $1440 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. For a 2BR unit, the Zillow median price is $110,524, which translates to a monthly rent of approximately $780 if rented out at a typical 1% cap rate. However, the price-to-FMR ratio is 8.4x, suggesting that the actual rental prices are significantly higher than the FMRs. This means that voucher holders face a challenge in finding affordable housing that fits within their budget. The actual rents for a 2BR unit could be around $916 per month, considering the price-to-FMR ratio. Therefore, voucher holders would struggle to find units that do not exceed their $1090 limit. #### Affordability & Renter Profile Hamtramck has a population of 43,384, with 38.3% being renters. The occupancy rate stands at 81.1%, indicating a relatively tight market where there is a good demand for rental properties. Given the median household income of $38,186, it is clear that many residents rely on Section 8 vouchers to afford housing. The affordability of housing is a significant concern, especially for low-income households who must spend a substantial portion of their income on rent. A 2BR unit at the FMR of $1090 represents 34.3% of the median income, which is already a considerable expense. If actual rents are higher, the burden on low-income families increases further. #### Investor Angle From an investor perspective, the ZIP code 48212 presents a mixed picture. The price-to-FMR ratio of 8.4x suggests that the actual rents are much higher than the FMRs, potentially leading to cash-flow positive scenarios for landlords. However, the high ratio also indicates that the market is overpriced relative to the FMRs, which might make it difficult for Section 8 voucher holders to find suitable housing. To assess the investment grade, we should consider the demand for rental properties and the ability to attract tenants. With a 38.3% renter population and an occupancy rate of 81.1%, there is a strong demand for rentals. However, the high price-to-FMR ratio could be a deterrent for Section 8 voucher holders, limiting the pool of potential tenants. Investors should be cautious about relying solely on Section 8 vouchers, as they might face challenges in filling units due to the limited number of eligible tenants. #### Specific Actionable Insights 1. **Focus on Units Within FMR Limits**: Investors should prioritize acquiring or developing units that fall within the FMR limits. For example, a 2BR unit should ideally be priced at $1090 or less to ensure it is accessible to Section 8 voucher holders. This can help in securing a steady stream of tenants and avoiding vacancy issues. 2. **Consider Diversifying Tenant Pool**: Given the high price-to-FMR ratio, it might be beneficial to diversify the tenant pool beyond just Section 8 voucher holders. This could include offering units at slightly above FMR rates to other low-income renters who might still find the prices affordable compared to the market rate. For instance, renting a 2BR unit at $1100 could still attract non-voucher low-income renters. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability of vouchers and the needs of the community. This can help investors tailor their offerings to better meet the demands of Section 8 voucher holders and improve the chances of unit occupancy. #### Bottom Line For Section 8-focused investors, the ZIP code 48212 presents a challenging but potentially rewarding opportunity. While the high price-to-FMR ratio makes it difficult for voucher holders to find affordable housing, the strong demand for rentals and the presence of a significant renter population suggest that there is still a viable market. However, investors should be prepared to navigate the constraints imposed by the FMR limits and consider diversifying their tenant pool. **Recommendation**: **Hold**. Investors should hold off on making large investments until they can secure units within the FMR limits or develop strategies to attract a broader range of tenants. This will ensure a stable and sustainable business model in the long term.

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.