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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $221,009 | 0.68% | D |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 48216 present a market in motion, characterized by strong rental demand and limited supply. With a Fair Market Rent (FMR) set at $1100 for the fiscal year 2024, the area stands well below the market rent of $1,725, as indicated by the Zillow Rent Index (ZORI). This gap suggests that the rental market is robust, with tenants willing to pay significantly above the FMR to secure living spaces.
The 0% price-cut share further underscores the strength of the rental demand, indicating that landlords have little need to negotiate on rent prices due to high occupancy rates. The absence of days on market (DOM) data for sales might hint at a quick turnover in the housing market, although this remains speculative without concrete figures.
The median home value of $195,893 provides insight into the affordability of homeownership in the area, but when juxtaposed with the rental dynamics, it becomes clear that owning a home here is less prevalent than renting. With a 64.6% renter share, it's evident that the majority of residents prefer or require rental housing over purchasing homes. This high percentage of renters implies ongoing long-term housing pressure, as a significant portion of the population relies on the rental market rather than owning property.
The disparity between the FMR and the market rent, combined with the lack of necessity for landlords to cut prices, points towards a market where demand outpaces supply. Landlords can maintain higher rents without compromising occupancy, suggesting a competitive environment for renters. The high renter share also indicates that the area may be attractive for investment in rental properties, as the local economy supports a large number of individuals who choose or must rent their homes.
In conclusion, ZIP 48216 is a market driven by strong rental demand, supported by a high renter share and a median home value that makes homeownership accessible to some but not all. The rental market's ability to sustain prices above the FMR and the absence of price cuts suggest a favorable climate for landlords and small-portfolio investors looking to capitalize on the current housing dynamics.
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.