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 | $770 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $188,749 | 0.73% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 48453, located in Tuscola County, MI metro, reveals several key insights. The HUD Fair Market Rent (FMR) for this area in fiscal year 2024 is set at $1100, which is significantly higher than the current market rent of $896 based on Census ACS data. This discrepancy means that voucher tenants can provide positive cash flow for landlords and small-portfolio investors, as the FMR exceeds the average market rent by $204 per unit.
To further understand the investment potential, consider the median home value in the area, which stands at $177,951. Using this figure, we can derive a rent-to-price ratio. With an average market rent of $896, the annual rent would be approximately $10,752. Dividing this by the median home value gives us a rent-to-price ratio of roughly 6.04%. This suggests that rental income could represent a substantial portion of the property's value, making it a viable option for investors looking to generate passive income.
Note that the median Days on Market (DOM) and the percentage of homes that required price cuts are not applicable (N/A) in this context, as they do not directly impact the rent-vs-buy dynamics for Section 8 investors. However, the strong cash flow potential remains the most compelling angle for investors in ZIP 48453. The ability to consistently earn above-market rents through Section 8 vouchers makes this a robust investment opportunity, particularly for those focused on generating reliable monthly income.
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.