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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $72,696 | 1.39% | A |
| 3BR | $1,230 | $92,582 | 1.33% | A |
| 4BR | $1,350 | $105,404 | 1.28% | A |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1100 set for ZIP 48218 in River Rouge, MI for fiscal year 2024, landlords and small-portfolio investors can expect to receive competitive subsidies. The Census American Community Survey indicates a market rent of $839, which is significantly lower than the FMR, suggesting a potential opportunity for higher rental yields when participating in the Section 8 program. Median home values stand at $85,477, reflecting a relatively affordable housing market where investment properties can be acquired at reasonable prices. The data shows that 42.7% of residents are renters, indicating a substantial demand for rental properties in the area. With a median income of $41,033, many residents may find it challenging to afford market rents without assistance, making the Section 8 program particularly attractive. Despite the lack of specific data on days on market (DOM), the low price-cut share of 0.2% suggests that properties are generally selling at their listed prices, which is favorable for maintaining property values. Given these factors, the Section 8 program appears to be a viable option for securing steady, government-backed rental income in River Rouge, MI.
The disparity between the $1100 FMR and the $839 market rent highlights the financial advantage of participating in Section 8. This subsidy level allows landlords to charge a rate above the average market rent while still providing affordable housing options for lower-income tenants. Moreover, the 42.7% renter share underscores the importance of rental properties in the local housing ecosystem, further justifying the investment in Section 8 properties. The median income figure of $41,033 supports the notion that many residents will need rental assistance to cover their living costs, thus driving demand for subsidized units. The fact that there is no significant need to cut prices, as evidenced by the 0.2% price-cut share, also points to a stable market where landlords can maintain their asking rents.
In conclusion, the numbers clearly indicate that ZIP 48218 presents a solid opportunity for Section 8 investments, offering a blend of manageable acquisition costs and attractive rental yields. For landlords and small-portfolio investors looking to secure reliable income streams, Section 8 participation in River Rouge, MI is recommended.
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.