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 | $1,450 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $2,020 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,020 | $263,798 | 0.77% | D |
| 3BR | $2,460 | $353,008 | 0.7% | D |
| 4BR | $2,670 | $572,199 | 0.47% | F |
| 5BR | $3,097 | $1,024,364 | 0.3% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 48236, Grosse Pointe Woods, MI, are straightforward when analyzed against the local rental market. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP code is $1730 per month for the fiscal year 2024. This SAFMR represents the maximum amount that the housing authority will pay on behalf of a tenant under the Section 8 program. In contrast, the local market rent for a similar unit, according to the Census ACS data, is $1624 per month.
A landlord participating in the Section 8 program should understand how the total payment is structured. The voucher payment consists of two parts: the tenant's portion and the housing authority's portion. The tenant's portion is typically 30% of their adjusted income, which can vary widely depending on the individual circumstances of the tenant. However, it is capped at the lower of either 30% of the household’s monthly adjusted income or the payment standard minus the utility allowance for the ZIP code.
In ZIP 48236, the SAFMR of $1730 includes an allowance for utilities, which means that if the total rent plus utilities exceeds $1730, the landlord will only receive up to $1730 from the housing authority. The tenant is responsible for paying the difference between the actual rent and the housing authority's payment, but it cannot exceed the SAFMR. Therefore, if a landlord charges $1730 or less, the housing authority will cover the full rent as long as it does not exceed the tenant's 30% contribution plus the utility allowance.
To illustrate, assume a tenant has an adjusted income that results in a 30% contribution of $400 towards rent. If the landlord charges $1730, the housing authority would cover the remaining $1330, ensuring the landlord receives the full SAFMR. However, if the landlord charges more than $1730, say $1800, the housing authority would still only pay up to $1730, leaving the landlord with a $70 shortfall unless the tenant can afford to pay the extra amount.
Given the local market rent is $1624, a landlord could potentially charge slightly above this figure and still be within the SAFMR limit, thus avoiding any financial gaps. But charging exactly at or below the market rate would ensure that the landlord receives the full rent without relying on the tenant to cover any additional costs beyond their 30% contribution.
In summary, the typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 48236 would be zero if the landlord sets the rent at or below the SAFMR of $1730. Landlords should carefully consider their pricing strategy to align with the SAFMR to avoid shortfalls and to maximize the benefits of the Section 8 program.
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.