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 | $1,510 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,790 |
| 5 Bedrooms | $3,236 |
| 6 Bedrooms | $3,624 |
| 7 Bedrooms | $3,914 |
| 8 Bedrooms | $4,110 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $276,350 | 0.76% | D |
| 3BR | $2,570 | $383,841 | 0.67% | D |
| 4BR | $2,790 | $560,610 | 0.5% | F |
| 5BR | $3,236 | $684,969 | 0.47% | F |
U.S. Census Bureau data (2024)
Skeptical investors often have valid concerns when considering investment properties in ZIP 48382, Commerce Township, MI. Here are some common objections and the data to address them.
Objection 1: Will FMR $1940 (zip FY 2024) cover the mortgage on a $458,251 home?
The Fair Market Rent (FMR) for ZIP 48382 is set at $1940 for fiscal year 2024. To determine if this will cover the mortgage on a home priced at $458,251, we must consider the prevailing interest rates and typical loan terms. Assuming a fixed-rate mortgage with an average interest rate and a 20% down payment, the monthly mortgage payment would likely be higher than the FMR. However, the FMR does not account for potential rental income above the minimum threshold required by the Housing Choice Voucher program, which could provide additional revenue.
Objection 2: Is there enough renter demand at 7.0%?
Rental vacancy rates can fluctuate based on local economic conditions, job availability, and population trends. With a vacancy rate of 7.0%, it suggests that there is moderate competition among rental properties. While this rate indicates there is space for new rentals, it also means that landlords must be prepared to offer competitive pricing and amenities to attract tenants. A vacancy rate of 7.0% is considered healthy but not overly saturated, indicating steady demand without being too robust.
Objection 3: Will vouchers keep pace with $1,875 market rents?
The Housing Choice Voucher program typically adjusts its payment standards annually to reflect changes in market rents. For ZIP 48382, the voucher payment standard is expected to remain close to the market rent of $1,875. However, the exact amount paid by the voucher program can vary based on the size of the unit and other factors. Landlords should review the voucher payment standards specific to their property type to ensure they align with the market rent. It's important to note that voucher holders might face limitations in finding units that accept vouchers and meet size requirements, which could impact the ability to fully cover the market rent with a voucher alone.
While the data provides insights into these concerns, it's crucial to stay informed about local real estate trends and the specific requirements of the Housing Choice Voucher program to make well-informed decisions.
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.