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 | $1,190 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $89,838 | 1.85% | A+ |
| 3BR | $2,020 | $161,274 | 1.25% | A |
| 4BR | $2,190 | $198,975 | 1.1% | B |
U.S. Census Bureau data (2024)
In ZIP code 48225 in Harper Woods, MI, the potential risks for a first-time Section 8 landlord are significant. Tenant turnover can be a challenge, especially when comparing the market rent of $1,362 to the Federal Market Rent (FMR) of $1,480 for fiscal year 2024. This discrepancy suggests that tenants might struggle to meet their portion of the rent, leading to higher turnover rates. Vacancy exposure is another concern, as the Days on Market (DOM) data is not available, indicating uncertainty in how quickly units can be filled. Given the typical home value of $150,463 and a median income of $61,750, there is a substantial gap between housing costs and residents' earnings, which increases the likelihood of deferred maintenance issues due to financial constraints.
However, these risks are somewhat mitigated by the high proportion of renters in the area, which stands at 33.8%. High renter density generally translates into a greater demand for rental properties, including those that accept Section 8 vouchers. This demand can help stabilize occupancy levels and reduce the impact of vacancy periods.
The assessment concludes that the risk for a first-time Section 8 landlord in ZIP 48225 is moderate. While there are notable challenges, the strong demand for rentals provides a buffer against some of the potential pitfalls.
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.