Section 8 Fair Market Rent (FMR) for ZIP 48229 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 48229

• Detroit Housing Commission (Detroit, MI) - 6,612 Section 8 vouchers
• Plymouth Housing Commission (Plymouth, MI) - 2,058 Section 8 vouchers
• Westland Housing Commission (Westland, MI) - 1,255 Section 8 vouchers
• Taylor Housing Commission (Taylor, MI) - 1,216 Section 8 vouchers
• Livonia Housing Commission (Livonia, MI) - 1,013 Section 8 vouchers
• Inkster Housing Commission (Inkster, MI) - 946 Section 8 vouchers
• River Rouge Housing Commission (River Rouge, MI) - 439 Section 8 vouchers
• Lincoln Park Housing Commission (Lincoln Park, MI) - 332 Section 8 vouchers
• Melvindale Housing Commission (Melvindale, MI) - 246 Section 8 vouchers
• Hamtramck Housing Commission (Hamtramck, MI)

A decision tree for evaluating whether to invest in ZIP 48229 (Ecorse, MI) using Section 8 involves several key considerations based on the provided data points.

Step 1: Does the Fair Market Rent (FMR) of $1100 cover the debt service on a property valued at $80,994?

• Yes: The FMR of $1100 can potentially cover the debt service on a property priced at $80,994. This means that if the property's debt service is less than or equal to $1100 per month, it would be financially viable under Section 8 guidelines.
• No: If the debt service exceeds $1100 per month, then the investment is not advisable since the FMR would not sufficiently cover the costs associated with owning the property.

Step 2: Is the market rent of $840 above, at, or below the FMR?

• Market Rent Below FMR: With the market rent at $840, which is below the FMR of $1100, there is an opportunity for landlords to potentially charge higher rents through Section 8 vouchers. This could lead to increased cash flow compared to non-Section 8 rentals.
• Market Rent At or Above FMR: If the market rent were at or above the FMR, it would indicate that the rental market is already competitive and landlords might not see significant benefits from participating in Section 8.

Step 3: Are the 37.9% renters combined with the unknown number of days on the market (DOM) sufficient to ensure demand?

• It Depends: With 37.9% of the population renting, there is a moderate level of demand. However, the lack of data on DOM makes it difficult to assess how quickly properties can be rented out. A high DOM could suggest a slow-moving market, whereas a low DOM would indicate strong demand.

In conclusion, ZIP 48229 (Ecorse, MI) offers a mixed picture for potential Section 8 investments. The FMR covers the debt service, and the market rent is below the FMR, suggesting a positive outlook. However, the demand scenario hinges on the DOM, which is not available. Landlords must evaluate other local market conditions to make a fully informed decision.

Data Sources: FMR data from HUD (2027). 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.