Location: Sanilac County, 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 | $760 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $251,674 | 0.53% | F |
U.S. Census Bureau data (2024)
ZIP 48416, located in Brown City, Sanilac County, MI, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The median monthly rent for a four-bedroom home or apartment in this area is $1,330, while the Fair Market Rent (FMR) for the same type of unit in FY 2024 is set at $1,100. This creates a spread of $230 between the actual market rent and the FMR, indicating that landlords could potentially benefit from a higher cash flow per unit.
The median home value in ZIP 48416 is $230,569, which is lower than the national average. However, the property tax rate in this area is relatively low at $9.25 per $1,000 of assessed value, compared to the national average of $10.98. Landlords will pay an average of $1,451 in property taxes, which is less than the national average of $2,690. This further enhances the cash flow potential of properties in this ZIP code.
While the median income in ZIP 48416 is $66,474, which is moderate, the 13.9% renter share suggests a reasonable demand for rental properties. Given the specific dollar figures and the slightly below average appreciation rate of 6.41%, ZIP 48416 is best suited as a cash-flow anchor rather than an appreciation play or diversifier. The lower property values and taxes contribute to higher net cash flows, making it an attractive option for landlords seeking steady income from their Section 8 investments.
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.