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 | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $205,432 | 0.51% | F |
| 3BR | $1,280 | $301,509 | 0.42% | F |
| 4BR | $1,390 | $334,073 | 0.42% | F |
U.S. Census Bureau data (2024)
The median income in Imlay City, MI (ZIP 48444) stands at $71,436. At first glance, this figure seems sufficient to cover the market rate rent of $907. However, the reality is more nuanced. For a household to comfortably afford housing costs, it should spend no more than 30% of its income on rent. In Imlay City, spending 30% of the median income would allow a household to pay up to $1,786 per month in rent, far exceeding the market rate.
Comparatively, the Fair Market Rent (FMR) set by the Department of Housing and Urban Development (HUD) for the zip code in fiscal year 2024 is $1,100. This means that while the market rate is lower than the FMR, it still represents a significant portion of the average household's income. The disparity between the median income and both the market rate and FMR highlights an affordability gap that impacts renters and landlords alike.
With 22.8% of the 9,483 population being renters, there is a notable segment of the community seeking affordable housing options. Landlords in Imlay City must consider the competition they face when setting rents. Cash-paying tenants might be more sensitive to price increases due to the already high proportion of their income spent on housing. On the other hand, voucher holders provide a more stable income stream, as their rent is subsidized based on the FMR.
The takeaway for landlords considering voucher versus cash-pay strategies is clear. While the market rate of $907 is below the HUD's FMR of $1,100, it is still a substantial expense for many households. Landlords who accept vouchers ensure a steady tenant who can pay the full FMR, reducing the risk of vacancy and providing a predictable income. Those who focus on cash-paying tenants should be prepared to offer competitive pricing and amenities to attract and retain residents in a market where housing affordability is a concern.
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.