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 | $1,200 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,340 | $56,860 | 2.36% | A+ |
| 2BR | $1,670 | $128,112 | 1.3% | A |
| 3BR | $2,030 | $187,489 | 1.08% | B |
| 4BR | $2,210 | $233,503 | 0.95% | C |
| 5BR | $2,564 | $245,336 | 1.05% | B |
U.S. Census Bureau data (2024)
The Section 8 thesis for Redford, Michigan, specifically ZIP code 48239, revolves around the discrepancy between the Fair Market Rent (FMR) set by HUD and the actual market rents. For fiscal year 2024, the FMR in ZIP 48239 is $1460, whereas the market rent, measured by Zillow's ZORI index, stands at $1566. This creates a gap of $106, which is approximately 7.25% of the market rent.
In Redford, where 21.1% of residents are renters and the median home value is $174,140, the FMR is lower than the market rent. This means that landlords accepting Section 8 vouchers will be renting their properties below the open-market rate. The median income in the area is $71,151, indicating that while there is demand for rental properties, the income levels suggest a significant portion of the population relies on subsidized housing.
The cost of housing voucher tenants below open-market rates can be seen as a trade-off between higher occupancy rates and the potential for lower maintenance costs due to the oversight and support provided by the housing authority. However, it also means landlords must accept a lower rent, which directly impacts their yield. Given the median home value, landlords might find that the properties they invest in could command higher rents if they were not tied to Section 8 vouchers.
To summarize, in ZIP 48239, landlords face a choice: they can either rent to voucher holders at a rate that is $106 less than the market average, or they can seek tenants willing to pay the full market rent. The decision should be informed by the local economic conditions, including the percentage of renters and median income levels, which point towards a significant need for affordable housing options.
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.