Section 8 Fair Market Rent (FMR) for ZIP 48238 - 2027

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

Investment Score for ZIP 48238

A+

Monthly Rent (2BR)

$1,220

Median Price (2BR)

$44,160

1% Rule

2.76%

Annual Yield

33.15%

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	$880
1 Bedroom	$980
2 Bedrooms	$1,220
3 Bedrooms	$1,490
4 Bedrooms	$1,610
5 Bedrooms	$1,868
6 Bedrooms	$2,092
7 Bedrooms	$2,259
8 Bedrooms	$2,372

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$44,160	2.76%	A+
3BR	$1,490	$58,279	2.56%	A+
4BR	$1,610	$75,018	2.15%	A+

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

24,731

Median Household Income

$33,315

Housing Units

16,014

Renter Percentage

53.0%

Occupancy Rate

64.0%

Renter Occupied

5,435

Detroit, Michigan's ZIP code 48238 represents a neighborhood deeply embedded in the city's rich history and currently undergoing various stages of revitalization and challenge. The area is characterized by a significant renter population and relatively low median home values, reflecting broader economic conditions and housing trends in Detroit.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 48238 for fiscal year 2024 is set at $1,100.
The Zillow Observed Rent Index (ZORI) indicates that the average market rent for a two-bedroom apartment in this ZIP code is $1,149.
The median home value in ZIP 48238 is notably low at $53,778, which is significantly below the national average.
Renters make up a substantial portion of the local population, with 53.0% of residents choosing to rent rather than own their homes.
The median household income in this area is $33,315, which is lower than the national median and indicates a community facing economic challenges.

For landlords and small-portfolio investors, ZIP 48238 presents a mixed landscape. The high renter share suggests strong demand for rental properties, while the ZORI and FMR figures provide a clear benchmark for setting competitive rents. However, the low median home value and median income highlight the need for careful management and pricing strategies to ensure profitability and sustainability in the face of economic constraints. Investors should focus on providing quality, affordable housing options to meet the needs of this predominantly renting population.

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.