Section 8 Fair Market Rent (FMR) for ZIP 48333 - 2027

FY 2027 Fair Market Rent Rates

The economics of Section 8 housing in ZIP code 48333, located in the Detroit-Warren-Livonia County, Michigan, are driven by the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1460. This figure represents the maximum amount that the government will pay for rent and utilities combined, based on the voucher program.

Landlords often wonder how much they can expect to receive from a voucher. Here's a breakdown: the SAFMR of $1460 covers both the tenant's portion of the rent and any utility allowances. Typically, tenants are required to contribute 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 (this is a hypothetical example for illustrative purposes), the tenant would contribute approximately $450 per month. The remaining balance, up to the SAFMR limit, is then covered by the government.

In practice, this means if the tenant contributes $450, the government would cover the rest, up to $1460. So, the landlord would receive the full $1460 minus the tenant's contribution. In our example, that would be $1010 from the government. However, the actual amount depends on the individual tenant's income and the specific terms of their voucher.

Note that the SAFMR of $1460 is set for this specific ZIP code, reflecting local rental market conditions. Unlike broader metro or county-level FMRs, the SAFMR aims to provide a more accurate representation of the cost of renting in ZIP 48333.

Given the SAFMR and assuming a typical market rent for a 2BR property in this ZIP code, there might be a gap between what the government pays and what the landlord charges. If the market rent were higher than $1460, the landlord would have to absorb the difference. Conversely, if the market rent is lower, the landlord would benefit from a surplus. Since the local market rent data is currently unavailable, it's impossible to determine the exact gap or surplus for 2BR properties in ZIP 48333.

To summarize, landlords should anticipate receiving a total of $1460 for a two-bedroom apartment in ZIP 48333, with the tenant contributing a portion based on their income. The remainder, up to the SAFMR limit, comes from the government. Without specific local market rent figures, the precise reimbursement gap or surplus cannot be calculated, but landlords should use the $1460 SAFMR as a benchmark for their rental pricing strategy.

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.