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 | $1,040 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $294,726 | 0.49% | F |
| 3BR | $1,770 | $444,345 | 0.4% | F |
| 4BR | $1,920 | $587,914 | 0.33% | F |
| 5BR | $2,227 | $730,571 | 0.3% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 48348 in Clarkston, MI, reveals a competitive but manageable landscape. The HUD Fair Market Rent (FMR) for the area is set at $1,580 for the fiscal year 2024. In comparison, the Zillow Observed Rental Index (ZORI) indicates a market rent of $1,689, which is slightly higher. This means that landlords accepting Section 8 vouchers will experience marginal cash flow at the FMR rate, with a shortfall of approximately $109 per unit compared to market rates.
To derive the rent-to-price ratio, we use the median home value of $501,944. Dividing the HUD FMR by the median home value yields a ratio of about 0.32%. This suggests that rental income represents a modest portion of the overall property value, indicating a scenario where investors might prefer to focus on appreciation rather than high rental yields.
The median days on market (DOM) for properties in this area stands at 18 days, and only 0.1% of listings have experienced any price cuts. These figures imply a strong seller's market, where homes are selling quickly without significant reductions. While these dynamics primarily affect the buying market, they do indicate a robust local economy, which can positively influence both rental demand and property values.
In summary, the strongest angle for Section 8 investors in ZIP 48348 is likely to be stability. Given the quick sales and minimal price adjustments, the housing market demonstrates resilience, providing a secure environment for long-term investment. Although cash flow margins may be tight, the potential for steady property appreciation offers a compelling alternative benefit.
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.