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

Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area

Investment Score for ZIP 48229

A+

Monthly Rent (2BR)

$1,150

Median Price (2BR)

$68,003

1% Rule

1.69%

Annual Yield

20.29%

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	$830
1 Bedroom	$920
2 Bedrooms	$1,150
3 Bedrooms	$1,400
4 Bedrooms	$1,520
5 Bedrooms	$1,763
6 Bedrooms	$1,975
7 Bedrooms	$2,133
8 Bedrooms	$2,240

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,150	$68,003	1.69%	A+
3BR	$1,400	$94,587	1.48%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

9,061

Median Household Income

$40,264

Housing Units

4,118

Renter Percentage

37.9%

Occupancy Rate

87.7%

Renter Occupied

1,367

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). 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.