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 | $860 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $282,698 | 0.42% | F |
| 3BR | $1,460 | $366,210 | 0.4% | F |
| 4BR | $1,590 | $501,144 | 0.32% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 48393 (Wixom, MI) for Section 8 investment must evaluate several key factors:
1) Does FMR $1100 (zip FY 2024) clear debt service on a $384,717 property?
No. The Fair Market Rent (FMR) for ZIP 48393 in fiscal year 2024 is set at $1100. To determine if this clears debt service, consider the mortgage payment, property taxes, insurance, and maintenance costs. For a $384,717 property, these expenses typically exceed $1100 per month, making it challenging to cover all costs solely with Section 8 income.
2) Is market rent $1,208 (ZORI) above, at, or below FMR?
Above. The Zillow Observed Rental Index (ZORI) for Wixom, MI, stands at $1,208, which is higher than the FMR of $1100. This indicates that the market rent is greater than what the government will pay under the Section 8 program.
3) Are 51.4% renters + N/A-day DOM enough demand?
It depends. With 51.4% of the population being renters, there is a substantial rental market. However, the lack of data on days on market (DOM) means we cannot assess how quickly properties are rented out. High demand can be beneficial for Section 8 properties, but it also depends on the willingness of tenants to accept Section 8 vouchers.
If the FMR does not cover the debt service, then the landlord must either rely on additional sources of income or seek non-Section 8 tenants willing to pay the ZORI rate. Given that market rents are above the FMR, there is potential for landlords to attract non-Section 8 tenants who can afford the higher rates.
The percentage of renters suggests strong demand, but the absence of DOM data introduces uncertainty. Landlords should investigate further to understand local attitudes towards Section 8 and the speed at which units are filled.
In summary, while the FMR is insufficient to cover the debt service on a $384,717 property, the higher market rent provides an opportunity to attract non-Section 8 tenants. The significant rental population offers demand, but the landlord's decision should also factor in the local acceptance of Section 8 and the time it takes to rent out a unit.
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.