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 | $1,050 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,790 | $388,934 | 0.46% | F |
| 4BR | $1,940 | $515,081 | 0.38% | F |
| 5BR | $2,250 | $644,313 | 0.35% | F |
U.S. Census Bureau data (2024)
ZIP code 48455 is situated within the Detroit-Warren-Livonia, MI HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 48455 is set at $1,160 for fiscal year 2024, while the average market rent stands at $1,285. This indicates that the rental market in 48455 is slightly above the HUD's FMR but remains relatively close.
The median home value in ZIP 48455 is $406,780, which is a key figure when comparing it against other ZIP codes within the same metro area. Additionally, the renter share in 48455 is 6.0%, suggesting that a significant portion of the housing stock is owner-occupied rather than rented.
To determine if ZIP 48455 is a value pocket, a mid-tier neighborhood, or a premium sub-market within the Detroit-Warren-Livonia metro, we must consider the interplay between FMR, market rent, and home values. Given that the FMR and market rent are closely aligned and slightly below the potential market rate, this suggests that 48455 is a mid-tier neighborhood where rental properties are priced reasonably for the area.
The median home value of $406,780 is indicative of a middle-class residential area, neither particularly low nor exceptionally high compared to the broader metro region. This aligns with the mid-tier classification, as it reflects a balance between affordability and quality of life.
A notable divergence is the relatively low renter share of 6.0%. Typically, areas with higher renter shares might be considered more attractive for landlords due to greater demand for rental units. However, without specific comparative data on renter shares across the entire metro area, it is difficult to conclusively state that 48455 is a Section 8 sweet spot solely based on this metric.
In summary, ZIP code 48455 appears to be a mid-tier neighborhood within the Detroit-Warren-Livonia metro, offering a reasonable balance between rental pricing and home values. Landlords and small-portfolio investors should find the area appealing for its moderate investment opportunities and alignment with HUD's FMR guidelines.
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.