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 | $790 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $278,274 | 0.4% | F |
| 3BR | $1,340 | $363,553 | 0.37% | F |
| 4BR | $1,450 | $480,147 | 0.3% | F |
| 5BR | $1,682 | $622,534 | 0.27% | F |
U.S. Census Bureau data (2024)
A decision tree for ZIP 48356 (Highland, MI) regarding Section 8 investments starts with three key questions. The first question addresses the financial viability of the Fair Market Rent (FMR) in covering the debt service of a property.
Question 1: Does FMR $1330 cover the debt service on a $369,750 property?
The answer is yes. A property priced at $369,750 with an FMR of $1330 would likely clear its debt service. This assumes a typical mortgage rate and term, which allows the rental income to exceed the monthly mortgage payments, property taxes, insurance, and maintenance costs.
Question 2: Is market rent $874 above, at, or below FMR?
The market rent of $874 is below the FMR of $1330. This indicates that properties in ZIP 48356 could be rented out at rates higher than what the market currently offers, potentially attracting more tenants who qualify for Section 8 assistance.
Question 3: Are 8.2% renters and N/A-day days on the market (DOM) indicative of sufficient demand?
The percentage of renters at 8.2% suggests a relatively low demand compared to other areas. However, since the exact number of days on the market (DOM) is not available, we must consider the broader context. If the market rent is significantly lower than the FMR, there might still be enough demand among Section 8 eligible tenants to make the investment viable. It depends on the local housing market dynamics and the availability of Section 8 vouchers.
If the answers to all three questions align positively, then the conclusion is yes. A landlord should consider buying in ZIP 48356 for Section 8 investments given the favorable financial metrics and potential demand from tenants who can leverage the higher FMR to secure housing.
However, if the demand for rentals is too low, despite the high FMR and market rent being below FMR, then the answer is no. Landlords should look elsewhere where there is a higher percentage of renters and/or shorter DOM to ensure their investment will generate consistent cash flow.
In summary, for ZIP 48356, the financial metrics support Section 8 investments, but the success will heavily depend on the local rental demand. Ensure you conduct thorough due diligence on the availability of Section 8 vouchers and tenant interest in the area before making a final decision.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.