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 | $1,190 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,190 |
| 5 Bedrooms | $2,540 |
| 6 Bedrooms | $2,845 |
| 7 Bedrooms | $3,073 |
| 8 Bedrooms | $3,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,020 | $320,511 | 0.63% | D |
| 4BR | $2,190 | $391,008 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 48412 presents an interesting scenario for both renters and landlords. The median household income stands at $79,534, which provides some context for how potential tenants might view the market rate rent of $1,375. To put this into perspective, the median income suggests that households have the financial capacity to cover the market rate rent, but it also highlights a significant affordability gap.
A household earning the median income would typically allocate around 30% of their income towards housing costs. At $79,534, this translates to approximately $2,386 per month available for housing expenses. However, the actual market rate of $1,375 represents a substantial portion of this budget, leaving little room for other expenses such as utilities, food, and transportation. This makes the market rate somewhat challenging for average-income households.
The situation becomes even more pronounced when comparing the market rate to the Fair Market Rent (FMR) set by the Housing Choice Voucher program, which is $1,100. This means that while the market rate is higher, the government-supported voucher rate is significantly lower. For landlords, this creates a competitive landscape where they must decide between accepting voucher payments, which are lower but guaranteed, or relying on market-rate tenants who might find the cost high relative to their income.
The rental market in ZIP 48412 is relatively small, with only 6.3% of the 5,815 population being renters. This low percentage indicates limited competition among landlords for rental properties. However, it also implies that the pool of potential tenants who can afford the market rate is narrow, especially considering the affordability gap mentioned earlier.
Landlords in ZIP 48412 should consider the balance between voucher tenants and market-rate tenants carefully. While voucher payments are lower at $1,100 compared to the market rate of $1,375, they offer stability and a guaranteed income source. On the other hand, market-rate tenants could potentially provide higher income, but they come with the risk of being more price-sensitive and possibly harder to attract due to the higher cost of living in the area.
The takeaway for landlords is that they need to weigh the benefits of guaranteed, stable income from voucher tenants against the possibility of higher rents from market-rate tenants. Given the small number of renters and the affordability gap, focusing on attracting voucher tenants might be a safer strategy to ensure consistent occupancy and income.
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.