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 | $1,030 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,430 |
| 3 Bedrooms | $1,740 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,140 | $100,391 | 1.14% | B |
| 2BR | $1,430 | $193,699 | 0.74% | D |
| 3BR | $1,740 | $301,658 | 0.58% | F |
| 4BR | $1,890 | $387,642 | 0.49% | F |
| 5BR | $2,192 | $441,160 | 0.5% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 48336 (Farmington Hills, MI) on the axes of yield and stability reveals a moderate profile. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,250, while the market rent stands at $1,524. This indicates a modest premium for market rents over the FMR, suggesting that landlords can expect a reasonable return but not exceptionally high yields. Given the median home value of $300,810, the rental market is competitive, and landlords should aim for properties that can command closer to the market rate to maximize their investment.
On the stability axis, Farmington Hills presents a balanced scenario. With 28.8% of residents being renters, the demand for rental properties is significant but not overwhelming, which implies a stable yet not highly volatile market. The Days on Market (DOM) average of 24 days suggests that properties are typically rented out relatively quickly, indicating a healthy demand for rentals. Additionally, the median household income of $88,938 supports the ability of tenants to pay higher rents, further stabilizing the rental market.
Based on these figures, ZIP 48336 is best classified as a steady-cashflow zone. The yield is not extraordinarily high, given the relatively close alignment between FMR and market rent. However, the stability factors—such as the percentage of renters, quick turnover rates, and solid household incomes—indicate a reliable market where consistent returns are more likely than speculative gains. Landlords and small-portfolio investors should focus on quality properties that attract long-term tenants to leverage this stability.
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.