Section 8 Fair Market Rent (FMR) for ZIP 48230 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 48230

• 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)

To decide whether to invest in ZIP 48230 (Grosse Pointe Park, MI) for Section 8 properties, follow these steps:

• If you can find a property priced at or below $487,389:
  • Does the Fair Market Rent (FMR) of $1,560 cover the debt service?
    • Yes. At this price point, the FMR of $1,560 is sufficient to cover the debt service, making it financially viable for a Section 8 investment.
    • No. If the debt service exceeds the FMR, investing in this ZIP code would not be advisable as the rental income would not cover your costs.
• If the Zillow Observed Rent Index (ZORI) of $1,363 is considered:
  • ZORI is below FMR. This suggests that market rents are lower than what Section 8 tenants can pay, which could make renting to Section 8 tenants more attractive than renting to market-rate tenants.
  • ZORI is equal to or above FMR. This indicates that market rents are competitive with or exceed the FMR, which might lead to landlords preferring to rent to market-rate tenants over Section 8 tenants.
• Regarding demand:
  • Are 21.5% of residents renters and is the Days on Market (DOM) for rentals N/A?
    • Yes. The 21.5% renter population indicates a moderate level of demand. The lack of days on market data (N/A) suggests that rental listings are either scarce or sell quickly, both of which could imply strong demand for rental properties. However, without specific DOM data, the exact speed of rental absorption cannot be determined.
    • No. If the percentage of renters is significantly lower or if the DOM data is available and high, it may indicate a weak rental market, making it less favorable for Section 8 investments.

In summary, if you can secure a property for $487,389 or less, the FMR of $1,560 will cover your debt service. The ZORI of $1,363 being below the FMR makes Section 8 units more appealing compared to market-rate units. With 21.5% of residents being renters and the lack of DOM data suggesting a quick rental market, demand appears to be stable but requires further investigation into the local rental market dynamics.

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.