Location: Detroit-Warren-Livonia, MI | Metro: Detroit-Warren-Livonia, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 48440, located in the Detroit-Warren-Livonia, MI HUD Metro FMR Area, is defined by a Fair Market Rent (FMR) of $1160 for the fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a voucher tenant in this area, as set by the U.S. Department of Housing and Urban Development (HUD).
Given that the market rent data is currently unavailable, we must rely on the HUD FMR to assess the viability of voucher tenants for cash flow purposes. The median home value in ZIP 48440 is $235,687, which allows us to calculate a rent-to-price ratio. Using the HUD FMR, the annual rent would be $13,920, leading to a rent-to-price ratio of approximately 5.9%. This ratio suggests that the rental income generated from a property priced at the median home value would be relatively low compared to the property's purchase price.
Without specific market rent data, it's challenging to definitively state whether voucher tenants will provide positive cash flow, marginal cash flow, or require premium units to break even. However, given the economic conditions in the broader Detroit metropolitan area, it is likely that voucher tenants will only provide positive cash flow with premium units. Landlords should consider this when evaluating potential investments in the area.
The lack of data on median days on market (DOM) and the percentage of price cuts indicates that the market is stable, with little fluctuation in property values or sales activity. This stability is crucial for investors looking to minimize risk and ensure consistent returns.
The strongest angle for Section 8 investors in ZIP 48440 is stability. The absence of significant fluctuations in the real estate market and the predictable nature of government-subsidized rents offer a secure investment environment, particularly valuable for small-portfolio investors seeking reliable cash flow sources.
Data Sources: FMR data from HUD (2027). 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.