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 | $1,410 |
| 1 Bedroom | $1,570 |
| 2 Bedrooms | $1,960 |
| 3 Bedrooms | $2,390 |
| 4 Bedrooms | $2,590 |
| 5 Bedrooms | $3,004 |
| 6 Bedrooms | $3,364 |
| 7 Bedrooms | $3,633 |
| 8 Bedrooms | $3,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,570 | $164,901 | 0.95% | C |
| 2BR | $1,960 | $254,688 | 0.77% | D |
| 3BR | $2,390 | $347,454 | 0.69% | D |
| 4BR | $2,590 | $502,209 | 0.52% | F |
| 5BR | $3,004 | $670,319 | 0.45% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 48390 in Commerce Township, MI, comes with several inherent risks that must be carefully considered. One significant issue is tenant turnover, which can be higher when the market rent is $2,058 compared to the Federal Market Rent (FMR) of $1,680 for FY 2024. This disparity may lead some tenants to seek higher-value housing outside of the voucher program, increasing the likelihood of frequent moves.
Vacancy exposure is another concern, especially given the average Days on Market (DOM) of 21 days. While this indicates a relatively quick rental process, it also suggests that landlords might face periods of vacancy between tenants, impacting cash flow.
The risk of deferred maintenance is also present. With a typical home value of $311,869 and a median income of $91,381, maintaining the property up to standards required by the Housing Choice Voucher program can be financially challenging. Landlords need to ensure that they have the resources to address any maintenance issues promptly to avoid penalties or loss of vouchers.
However, these risks are offset by the high renter share in the area, which stands at 25.3%. A large proportion of renters often translates into a higher demand for Section 8 vouchers, ensuring a steady pool of potential tenants. Additionally, the local rental market dynamics suggest that there is a strong interest in affordable housing options, making it easier to find qualified applicants who can benefit from the voucher program.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 48390 is moderate. While challenges such as tenant turnover and maintenance costs exist, the high renter density provides a solid foundation for finding reliable tenants and maintaining occupancy rates.
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.