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 | $930 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,040 | $114,259 | 0.91% | C |
| 2BR | $1,300 | $202,212 | 0.64% | D |
| 3BR | $1,580 | $270,490 | 0.58% | F |
| 4BR | $1,720 | $338,533 | 0.51% | F |
| 5BR | $1,995 | $463,177 | 0.43% | F |
U.S. Census Bureau data (2024)
The ZIP code 48328, located in Waterford, Michigan, presents a dynamic rental market. The Fair Market Rent (FMR) for the area is set at $1230 for fiscal year 2024, closely aligning with the market rent figure of $1,264 as indicated by ZORI. This suggests that the rental prices are in line with what the government deems fair for the region, indicating a stable but competitive environment.
A key indicator of market health is the price-cut share, which stands at 0.2%. This low percentage implies that landlords are not frequently lowering their rents to attract tenants, suggesting that demand is steady and possibly keeping pace with supply. Additionally, the days on market (DOM) of 20 days indicates a swift turnover rate for rentals, further supporting the notion that units are being filled relatively quickly once they become available.
The median home value of $252,610 provides context for the overall economic landscape of the area. In a market where homes are valued at this level, it can be inferred that the cost of homeownership might be prohibitive for some individuals, pushing them towards the rental market. This could contribute to a sustained demand for rental properties.
With a renter share of 33.3%, Waterford demonstrates a significant portion of its population choosing to rent rather than buy. This high renter share is indicative of long-term housing pressure, as it suggests that a considerable number of residents find renting more suitable or affordable than purchasing a home. For landlords and small-portfolio investors, this translates into a reliable tenant base, ensuring consistent cash flow from rental properties.
In summary, ZIP 48328 is characterized by a balanced yet active rental market. Rental prices reflect both fair market values and competitive rates, while the low price-cut share and quick DOM suggest that demand is robust enough to support the existing supply without significant downward pressure on rents. The high renter share points to enduring housing dynamics that favor the rental sector, making it an attractive investment opportunity for those looking to capitalize on steady tenant demand.
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.