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 | $1,230 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $111,995 | 1.1% | B |
| 3BR | $1,500 | $113,263 | 1.32% | A |
| 4BR | $1,630 | $157,561 | 1.03% | B |
U.S. Census Bureau data (2024)
The investment risk in ZIP 48215 in Detroit, MI, for a Section 8 landlord is multifaceted. Tenant turnover is a significant concern, with the market rent at $901 being notably lower than the Fair Market Rent (FMR) of $1130 for FY 2024. This discrepancy suggests that tenants might be attracted to higher-paying Section 8 vouchers, leading to frequent moves and instability for landlords.
Vacancy exposure is another critical issue. The Days on Market (DOM) data is not available, which makes it difficult to predict how long properties might remain vacant between tenants. High vacancy periods can lead to lost rental income and increased costs for maintaining empty properties.
Deferred maintenance is also a risk, given the typical home value of $92,686 and the median household income of $33,812. Landlords may face challenges in keeping up with necessary repairs and upgrades without passing these costs onto tenants, who may struggle to afford them due to their financial situation.
However, these risks must be weighed against the high renter share in the area, which stands at 48.8%. A large proportion of renters typically indicates a higher demand for housing assistance, including Section 8 vouchers. This high demand can stabilize occupancy rates and provide a steady stream of tenants willing to use vouchers to cover their rent.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 48215 is moderate.
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.