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 | $1,230 |
| 1 Bedroom | $1,370 |
| 2 Bedrooms | $1,710 |
| 3 Bedrooms | $2,080 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,710 | $254,088 | 0.67% | D |
| 3BR | $2,080 | $401,439 | 0.52% | F |
| 4BR | $2,260 | $502,089 | 0.45% | F |
| 5BR | $2,622 | $597,635 | 0.44% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 48383, White Lake, MI, reveals a nuanced balance between yield and stability. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,560, while the market rent stands at $1,732. This suggests a relatively strong rental market, with a slight premium over the FMR, indicating potential for higher yields.
However, the median home value of $418,806 places significant pressure on the overall cost of investment properties. When considering the average household income of $102,072, the affordability ratio for tenants is critical. With only 6.1% of residents being renters, competition for tenants is likely low, which could stabilize occupancy rates but also limit the number of potential tenants.
The absence of data regarding the number of days on market (DOM) makes it difficult to assess how quickly properties might be rented out. However, given the low percentage of renters and assuming a stable local economy, it's reasonable to infer that once a property is occupied, there is a good chance of maintaining steady cash flow.
To summarize, ZIP 48383 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The rental market shows promise with above-FMR rates, but the high median home values and limited rental population suggest a conservative approach is warranted. Landlords and small-portfolio investors should expect solid, reliable returns rather than explosive growth.
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.