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 | $900 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $57,084 | 2.21% | A+ |
| 3BR | $1,530 | $101,742 | 1.5% | A+ |
| 4BR | $1,670 | $184,774 | 0.9% | C |
U.S. Census Bureau data (2024)
The ZIP code 48223 in Detroit, MI, is a unique area within Wayne County with a population of 22,622 residents. A significant portion, 43.8%, of these residents are renters, indicating a robust demand for rental properties. The median income in this ZIP code is $44,512, which is relatively low compared to the median home value of $85,650. This disparity suggests that homeownership is less accessible to many residents, further emphasizing the importance of rental housing.
When it comes to Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 48223 in fiscal year 2024 is set at $1,170. In contrast, the market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1,210. This slight difference means that landlords accepting Section 8 vouchers can expect rents slightly below the market rate, but still within a reasonable range. The gap between the FMR and ZORI highlights the economic reality faced by low-income tenants in the area, who rely on government assistance to find affordable housing.
Based on the data signature, ZIP 48223 appears to be in a stable state. While the median income is lower than the median home value, the high percentage of renters and the close alignment between FMR and ZORI suggest that the housing market is functioning predictably. Landlords and small-portfolio investors should be aware of the economic conditions and consider the balance between market rates and Section 8 voucher amounts when setting their rental prices. The slight difference between FMR and market rent indicates that there is a consistent demand for subsidized housing, making Section 8 properties a viable option for investors looking to serve the local community while maintaining financial stability.
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.