Location: Tuscola 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 | $870 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,570 | $234,533 | 0.67% | D |
U.S. Census Bureau data (2024)
A landlord considering ZIP 48435 for Section 8 investments should follow this decision tree:
1) Does FMR $1100 (ZIP FY 2024) clear debt service on a $217,714 property?
If the landlord's debt service payment is less than $1100 per month, then the answer is yes. For instance, if the monthly mortgage payment is $900, then the FMR comfortably covers it, allowing for additional expenses such as maintenance and utilities.
If the debt service payment exceeds $1100, the answer is no. A monthly mortgage payment of $1200 would mean that the FMR does not sufficiently cover the cost, leading to financial losses over time.
2) Is market rent $1,007 (Census ACS) above, at, or below FMR?
If the market rent is above the FMR, landlords should consider whether they can attract non-Section 8 tenants willing to pay the higher market rate. In ZIP 48435, where the market rent is slightly above the FMR at $1,007, it suggests a competitive advantage for landlords who can charge market rates.
If the market rent is at or below the FMR, landlords must rely on Section 8 tenants to fill their properties. This scenario could limit income potential but still be viable if the debt service is covered by the FMR.
3) Are 5.4% renters + N/A-day DOM enough demand?
The percentage of renters in ZIP 48435 is 5.4%, which is relatively low. Additionally, the days on market (DOM) being listed as N/A indicates incomplete data, possibly suggesting that properties are either rented quickly or there is a lack of rental activity data.
In summary, a landlord should proceed with buying in ZIP 48435 if the FMR covers the debt service and the market rent offers a slight advantage. However, the low percentage of renters and uncertain DOM data suggest caution and further investigation into local demand before making a final decision.
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.