Section 8 Fair Market Rent (FMR) for ZIP 48325 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 in ZIP code 48325 (located in the Detroit-Warren-Livonia County) revolve around the Subsidized Average Fair Market Rent (SAFMR), which for a two-bedroom apartment is set at $1460 for fiscal year 2024. This SAFMR is specific to this ZIP code, meaning it reflects the rental rates deemed fair within 48325 itself.

A landlord participating in the Section 8 program will receive a payment from the Housing Choice Voucher Program, which covers the difference between the tenant's contribution and the SAFMR. The tenant's portion is typically 30% of their adjusted income, and they also receive a utility allowance. To illustrate, if a tenant's monthly adjusted income is $1000, they would contribute $300 towards rent and have an additional utility allowance.

The voucher payment to the landlord is calculated as follows:

• The SAFMR for a two-bedroom unit is $1460.
• The tenant contributes 30% of their income, which in this case is $300.
• The utility allowance varies but can be estimated at around $200 per month for simplicity.

This means the total amount the landlord receives from both the tenant and the voucher program would be $1660 ($300 from the tenant plus $1460 from the voucher). However, since the SAFMR is $1460, the landlord effectively receives this amount from the voucher program, with the tenant contributing $300 directly.

Given that the local market rent is currently not available, we cannot provide a direct comparison to determine the surplus or shortfall. However, based on the SAFMR, landlords should expect a stable and government-backed income of $1460 per month for a two-bedroom apartment under the Section 8 program. This figure is designed to cover the majority of rental costs in the area, ensuring that landlords are compensated fairly while tenants pay an affordable portion of their income towards housing.

In summary, landlords in ZIP 48325 who accept Section 8 vouchers will receive $1460 per month for a two-bedroom apartment, with the tenant paying an additional $300 directly and receiving a utility allowance. The exact surplus or shortfall compared to the local market rent cannot be determined without current market data, but the SAFMR is intended to closely align with typical rental costs in the area.

Data Sources: FMR data from HUD (2027).

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.