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 | $1,180 |
| 1 Bedroom | $1,310 |
| 2 Bedrooms | $1,640 |
| 3 Bedrooms | $2,000 |
| 4 Bedrooms | $2,170 |
| 5 Bedrooms | $2,517 |
| 6 Bedrooms | $2,819 |
| 7 Bedrooms | $3,045 |
| 8 Bedrooms | $3,197 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,640 | $251,199 | 0.65% | D |
| 3BR | $2,000 | $377,789 | 0.53% | F |
| 4BR | $2,170 | $565,731 | 0.38% | F |
| 5BR | $2,517 | $627,228 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 48316, located in Shelby Township, MI, presents an interesting balance between yield and stability for real-estate investors. The Fair Market Rent (FMR) for FY 2024 is set at $1,460, which is notably higher than the local market rent of $1,378. This discrepancy suggests a potential opportunity for rental income above the typical market rate, especially when considering the median home value stands at $414,042.
On the stability axis, the data points towards a relatively secure investment environment. With 21.3% of residents being renters, there is a consistent demand for rental properties. Additionally, the days on market (DOM) average is 18 days, indicating that homes are typically occupied quickly once they become available, reducing the risk of vacancy. The median household income of $107,776 further supports the stability of the area, as it implies a strong economic base capable of sustaining rental payments.
Given these factors, ZIP 48316 leans more towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The slightly elevated FMR compared to the market rent and the robust median income suggest that while yields might not be exceptionally high, the likelihood of maintaining a stable occupancy and steady cash flow is significant. The quick turnover rate of 18 days also indicates a healthy demand for housing, which can be beneficial for long-term investments.
To summarize, the key figures driving this assessment are the FMR of $1,460 versus the market rent of $1,378, the median home value of $414,042, the percentage of renters at 21.3%, the DOM of 18 days, and the median income of $107,776. These metrics collectively point to a market where investors can expect reliable returns without the volatility associated with higher-risk, higher-reward strategies.
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.