Section 8 Fair Market Rent (FMR) for ZIP 48341 - 2027

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

Investment Score for ZIP 48341

Monthly Rent (2BR)

$1,160

Median Price (2BR)

$112,703

1% Rule

1.03%

Annual Yield

12.35%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$830
1 Bedroom	$930
2 Bedrooms	$1,160
3 Bedrooms	$1,410
4 Bedrooms	$1,530
5 Bedrooms	$1,775
6 Bedrooms	$1,988
7 Bedrooms	$2,147
8 Bedrooms	$2,254

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,160	$112,703	1.03%	B
3BR	$1,410	$150,378	0.94%	C
4BR	$1,530	$196,505	0.78%	D
5BR	$1,775	$191,756	0.93%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

18,924

Median Household Income

$51,390

Housing Units

8,481

Renter Percentage

46.6%

Occupancy Rate

91.1%

Renter Occupied

3,599

Pontiac, MI, represented by ZIP code 48341, is a suburban area known for its blend of residential neighborhoods and historical significance. The city has been undergoing redevelopment efforts to revitalize its housing market, making it an interesting area for real estate investors, especially those considering Section 8 properties.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 48341 for fiscal year 2024 is set at $1,100. This figure represents the maximum rent that a landlord can charge for a Section 8 voucher holder in the area.
The Zillow Observed Rental Index (ZORI), which measures the average rental price for a typical home, stands at $1,320. This indicates that the market rent is above the FMR, suggesting potential opportunities for landlords who can offer competitive amenities or locations.
The median home value in ZIP 48341 is $148,687, reflecting a relatively affordable housing market that could attract first-time buyers and renters alike.
Renters make up 46.6% of the population, indicating a substantial demand for rental properties. This high percentage of renters suggests that there is a steady stream of potential tenants for landlords.
The median household income in the area is $51,390, providing insight into the economic profile of the residents and their ability to afford higher rents or mortgage payments.

For landlords and small-portfolio investors, Pontiac's real estate landscape presents a balanced opportunity. The gap between the FMR and market rent suggests potential for earning above government-set limits through property enhancements or strategic location choices. The median home value and renter share indicate a market where rental properties are likely to find a ready audience, though the median income should be considered when setting rent prices to ensure affordability for tenants. Overall, the area offers a mix of affordability and demand, making it a viable option for investors looking to enter or expand in the Pontiac market.

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.