Section 8 Fair Market Rent (FMR) for ZIP 48219 - 2027

Investment Score for ZIP 48219

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	$1,030
1 Bedroom	$1,140
2 Bedrooms	$1,430
3 Bedrooms	$1,740
4 Bedrooms	$1,890
5 Bedrooms	$2,192
6 Bedrooms	$2,455
7 Bedrooms	$2,651
8 Bedrooms	$2,784

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,430	$61,785	2.31%	A+
3BR	$1,740	$94,923	1.83%	A+
4BR	$1,890	$127,107	1.49%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48219 (Detroit, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48219, as determined by HUD for 2026, is set at $1370 for a two-bedroom unit. This figure represents 37.7% of the median household income in the area, which is $43,655. However, the actual rent prices for two-bedroom units are significantly higher, with the Zillow median price being $60,672 annually, or approximately $5,056 monthly. The price-to-FMR ratio is 3.7x, indicating that actual rents are nearly four times higher than the FMR. This suggests that Section 8 voucher holders face significant constraints in finding affordable housing within the ZIP code. They would be limited to properties priced at or below the FMR, which is much lower than the market rate. #### Affordability & Renter Profile ZIP code 48219 has a population of 47,208, with 45.1% of residents being renters. The occupancy rate is 86.5%, suggesting that the rental market is relatively tight. Given that the median household income is $43,655, it is likely that many renters rely on government assistance such as Section 8 vouchers to afford housing. However, the high price-to-FMR ratio indicates that even with vouchers, affordability remains a challenge. The average renter would need to find a property that fits within their budget, which is constrained by both the FMR and their income level. With the FMR for a two-bedroom unit being only $1370 per month, it is clear that there is a substantial gap between what renters can afford and what the market demands. #### Investor Angle From an investor perspective, the ZIP code presents a mixed picture. While the FMRs provide a baseline for rental pricing, the actual market rates are much higher. For instance, the FMR for a two-bedroom unit is $1370, but the median market price is around $5,056. This means that if an investor were to purchase a property and rent it out at the FMR, they would likely not achieve positive cash flow due to the high acquisition cost. Additionally, the investment grade would be low because the rental income at FMR levels would not cover the mortgage payments and other expenses associated with owning and maintaining a property in this ZIP code. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should consider focusing on acquiring properties that are priced below the FMR, particularly those that can be rented out for $1370 or less for a two-bedroom unit. This would ensure that they can attract Section 8 voucher holders and potentially achieve positive cash flow. 2. **Consider Renovation Projects**: If acquiring properties at or near the FMR is not feasible, investors might consider purchasing distressed properties and renovating them to bring them up to standard while keeping the rental price close to the FMR. This could involve working with local contractors who specialize in affordable housing renovations. 3. **Explore Government Programs**: Investors should explore government programs that offer incentives for landlords who accept Section 8 vouchers. These programs might include tax breaks, grants, or subsidies that can help offset the lower rental income. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors is to **skip** this ZIP code. The disparity between the FMR and the actual market rates makes it difficult to achieve positive cash flow, and the limited number of properties available at or below the FMR suggests that supply is insufficient to meet demand. Therefore, investing in this ZIP code would likely result in financial losses unless the investor can secure properties at a significantly discounted price or benefit from substantial government incentives.

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.