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 | $1,170 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,150 |
| 5 Bedrooms | $2,494 |
| 6 Bedrooms | $2,793 |
| 7 Bedrooms | $3,016 |
| 8 Bedrooms | $3,167 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $245,664 | 0.66% | D |
| 3BR | $1,980 | $318,829 | 0.62% | D |
| 4BR | $2,150 | $552,108 | 0.39% | F |
| 5BR | $2,494 | $627,961 | 0.4% | F |
U.S. Census Bureau data (2024)
The potential downsides for investing in Section 8 housing in ZIP 48359, Orion, MI, are significant. Firstly, tenant turnover is likely to be high due to the disparity between the market rent of $2,285 and the Fair Market Rent (FMR) of $1,430 for FY 2024. Landlords who set rents above the FMR risk higher turnover rates as tenants seek more affordable options. Secondly, there is a notable exposure to vacancy given that the days on market (DOM) data is unavailable, indicating possible instability in the rental market. Lastly, the risk of deferred maintenance is considerable, considering the typical home value of $396,448 and the median income of $93,125. The median income suggests that many residents may struggle to afford the upkeep of their homes, potentially leading to more wear and tear.
However, these risks must be weighed against the substantial demand for rental properties. With a 31.2% renter share, the area boasts high renter density, which often translates into higher demand for housing vouchers. This can provide a steady stream of tenants for Section 8 properties, mitigating some of the vacancy concerns. Moreover, the high renter share indicates a robust rental market, which can support the presence of Section 8 properties.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.