Section 8 Fair Market Rent (FMR) for ZIP 48340 - 2027

Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,000
1 Bedroom	$1,110
2 Bedrooms	$1,390
3 Bedrooms	$1,690
4 Bedrooms	$1,840
5 Bedrooms	$2,134
6 Bedrooms	$2,390
7 Bedrooms	$2,581
8 Bedrooms	$2,710

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

25,669

Median Household Income

$47,891

Housing Units

12,088

Renter Percentage

54.3%

Occupancy Rate

91.3%

Renter Occupied

5,989

Housing Authorities Serving ZIP 48340

Pontiac Housing Commission (Pontiac, MI) - 1,257 Section 8 vouchers
Ferndale Housing Commission (Ferndale, MI) - 984 Section 8 vouchers
Southfield Housing Commission (Southfield, MI) - 339 Section 8 vouchers
Royal Oak Township Housing Commission (Ferndale, MI)
South Lyon Housing Commission (South Lyon, MI)

The ZIP code 48340, located in Pontiac, Michigan, offers a unique blend of urban and suburban living. This area is known for its diverse community and access to major transportation routes, making it attractive for both tenants and investors. The following analysis provides key metrics that define the rental market in this region.

Fair Market Rent (FMR) for ZIP 48340: In fiscal year 2024, the FMR is set at $1140, which reflects the average rent level considered fair for the area.
Market Rent (ZORI): The actual market rent, as indicated by Zillow's Rent Index (ZORI), is $1,298, slightly above the FMR, suggesting a competitive rental market.
Median Home Value: At $138,982, the median home value is relatively low, indicating a predominantly affordable housing market.
Renter Share: With 54.3% of residents being renters, there is a strong demand for rental properties in the area.
Days on Market (DOM): Properties typically spend 29 days on the market before securing a tenant, showing a brisk pace of leasing activity.
Median Income: The median household income in ZIP 48340 is $47,891, which is lower than the national average, but still sufficient to support the current rental rates.

In summary, ZIP 48340 presents a viable investment opportunity for landlords and small-portfolio investors. The gap between the Fair Market Rent and the actual market rent suggests potential for modest returns. A high renter share combined with a quick turnaround time for leases indicates strong demand and low vacancy risk. While the median home value is low, the median income supports the current rental rates, ensuring a steady stream of tenants who can afford the rents. However, investors should be aware that the relatively low median income could affect long-term rent growth, necessitating careful management and maintenance to keep properties competitive and attractive to renters.

Data Sources: FMR data from HUD (2027). 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.