Section 8 Fair Market Rent (FMR) for ZIP 48310 - 2027

Investment Score for ZIP 48310

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	$1,190
1 Bedroom	$1,330
2 Bedrooms	$1,660
3 Bedrooms	$2,020
4 Bedrooms	$2,190
5 Bedrooms	$2,540
6 Bedrooms	$2,845
7 Bedrooms	$3,073
8 Bedrooms	$3,227

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	$1,660	$224,734	0.74%	D
3BR	$2,020	$317,851	0.64%	D
4BR	$2,190	$354,141	0.62%	D
5BR	$2,540	$389,879	0.65%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 48310 (Sterling Heights, MI) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 48310 in Sterling Heights, Michigan, for a two-bedroom apartment is set at $1610 per month for 2026. This figure represents 24.8% of the median household income in the area, which is $78,058. However, the actual rental market is significantly higher, with Zillow reporting a median price for a two-bedroom home at $223,156. The price-to-FMR ratio of 11.6x indicates that the actual cost of renting a two-bedroom unit is approximately $18,760 annually, far exceeding the FMR. For voucher holders, this means that the majority of available rental units are likely out of reach due to the high actual rent costs compared to the FMR. #### Affordability & Renter Profile In ZIP code 48310, 21.6% of the population are renters, indicating a relatively small but significant rental market. With a population of 43,354, there are approximately 9,367 renters in the area. Given the occupancy rate of 96.7%, it suggests that the rental market is quite tight, with very few vacant units available. This tightness can drive up rental prices, making it even harder for low-income families to find affordable housing. #### Investor Angle For investors focusing on Section 8 properties, the ZIP code 48310 presents a challenging environment. The FMR for a two-bedroom unit is $1610, which is considerably lower than the actual market rent. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental rates versus the FMR. Since the actual median rent for a two-bedroom unit is $18,760 annually, and the FMR is only $19,320 annually, it would be difficult to achieve profitability without relying on higher-paying tenants or non-voucher rents. The investment grade for this ZIP code would be considered low due to the significant gap between FMR and actual market rents. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that can be rented at or below the FMR levels. For instance, a one-bedroom apartment with an FMR of $1280 could be a better option for cash flow, given the tight rental market and high demand for affordable housing. 2. **Consider Renovation Projects**: Given the high price-to-FMR ratio, properties that require renovation might offer a better opportunity. By investing in renovations, landlords can potentially increase the rental value while still keeping it within the FMR range, thus attracting voucher holders while maintaining a reasonable profit margin. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 48310 is to **Skip**. The high actual rental prices compared to the FMR make it difficult to find profitable properties that are suitable for voucher holders. Additionally, the tight rental market and limited availability of units at or below FMR levels suggest that there is little room for maneuvering within the constraints of Section 8 vouchers. Investors looking to enter this market should carefully evaluate their options and consider other ZIP codes with more favorable FMR-to-market rent ratios.

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.