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 | $1,570 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $214,003 | 1.02% | B |
| 3BR | $2,670 | $397,031 | 0.67% | D |
| 4BR | $2,900 | $574,037 | 0.51% | F |
| 5BR | $3,364 | $707,814 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 48375, located in Novi, Michigan within Oakland County, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1940 per month for fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, reflecting the localized rental market conditions.
In contrast, the local market rent, as measured by ZORI (Zillow Observed Rent Index), stands at $1607 for a two-bedroom unit. Landlords should understand that the actual amount a voucher pays is not solely based on the SAFMR but also includes the tenant's portion of the rent and utility allowances.
A voucher holder typically pays 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 for simplicity, the tenant would pay $450 ($1500 * 0.30) towards the rent. Utility allowances can vary, but let’s say it averages around $300 per month. Thus, the total reimbursement to the landlord would be the sum of the tenant's contribution and the utility allowance, plus the subsidy from the housing authority.
To calculate the typical reimbursement, first subtract the tenant's contribution from the SAFMR. In this case, $1940 - $450 = $1490. Adding the utility allowance of $300 brings the total to $1790. Therefore, the landlord would receive approximately $1790 per month from the voucher program for a two-bedroom unit.
Given the local market rent of $1607, this means landlords participating in the Section 8 program for a two-bedroom unit in ZIP 48375 would see a surplus of about $183 per month over the typical market rate. This surplus provides a buffer that can help cover maintenance costs, vacancies, and other expenses associated with property management.
Note that these calculations are illustrative and actual figures will depend on the specific circumstances of each tenant and the terms negotiated with the housing authority. However, this example demonstrates the economic benefits that can accrue to landlords who choose to participate in the Section 8 program in this particular ZIP code.
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.