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 | $1,050 |
| 1 Bedroom | $1,170 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $1,930 |
| 5 Bedrooms | $2,239 |
| 6 Bedrooms | $2,508 |
| 7 Bedrooms | $2,709 |
| 8 Bedrooms | $2,844 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,460 | $184,877 | 0.79% | D |
| 3BR | $1,780 | $335,320 | 0.53% | F |
| 4BR | $1,930 | $447,291 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP code 48320, located in Keego Harbor, MI, has a population of 4,277 individuals, with 30.1% being renters. This indicates that while there is a significant portion of renters, it is not overwhelmingly dominated by rental properties. The median household income in this area stands at $78,150, which provides context for the affordability of housing.
The market rent for the area is currently set at $1,214 per month. Given the median income, this means that the typical rent consumes approximately 15.5% of the average monthly income, calculated as follows: ($78,150 / 12) * 0.155 = $1,214. This percentage suggests that rent is relatively affordable for the majority of residents, especially when compared to the Fair Market Rent (FMR) of $1,370 for FY 2024, which is higher than the current market rent.
The FMR figure is important for understanding the potential value of Section 8 vouchers in this area. At $1,370, the FMR exceeds the market rent by $156, indicating that landlords who accept Section 8 vouchers could potentially receive slightly higher rents than the current market rate. However, the demand for these vouchers may not be as high as in areas with a larger percentage of renters or lower median incomes.
A landlord in Keego Harbor, MI, can expect tenants who are likely to have stable employment given the median income level. These tenants will benefit from the Section 8 program, which helps them cover a substantial portion of their rent. The typical tenant profile would include individuals or families who are able to contribute a portion of their income towards rent but still require assistance to meet the full cost, particularly if they are looking for units priced closer to the FMR.
In summary, while Keego Harbor has a decent proportion of renters, it is not a heavily renter-dominated area. Landlords here should anticipate a mix of tenants who are financially stable but still rely on Section 8 vouchers to manage their housing costs effectively. The current market conditions suggest that landlords can reasonably expect to receive rents close to the FMR by accepting vouchers, thus maximizing their revenue within the constraints of the 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.