Location: Flint, 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 | $720 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $188,561 | 0.55% | F |
| 3BR | $1,260 | $252,895 | 0.5% | F |
| 4BR | $1,470 | $317,100 | 0.46% | F |
U.S. Census Bureau data (2024)
To determine how ZIP 48463 (Otisville, MI, Flint, MI MSA metro) fits into a Section 8 portfolio strategy, we need to analyze the key metrics that influence rental investments. This ZIP code presents itself primarily as a cash-flow anchor. The rationale for this classification is based on the significant spread between the Fair Market Rent (FMR) for FY 2024 and the actual market rents.
The FMR for a one-bedroom apartment in ZIP 48463 for FY 2024 is set at $1100. However, the current market rent for a similar unit stands at only $797. This means that landlords participating in the Section 8 program can expect to receive a higher rental income than what the local market offers, thus providing a stable and reliable cash flow. With a median home value of $238,663, it's evident that the housing market in Otisville is relatively affordable, which supports the lower market rents observed.
ZIP 48463 cannot be classified as an appreciation play due to the lack of data indicating a trend towards rising property values. The absence of percentage changes in price-cut shares and days on market (DOM) suggests that there isn't enough evidence to support an investment strategy focused on capital appreciation.
While the 8.0% renter share and median income of $72,500 might suggest some potential for diversification, these factors alone are not sufficient to outweigh the benefits of using this ZIP code as a cash-flow anchor. The median income figure indicates that there is a reasonable level of financial stability among residents, but the primary driver for Section 8 investments should be the guaranteed income stream provided by the government subsidy.
In summary, ZIP 48463 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. Landlords can secure a steady income through the government-subsidized rental payments, which exceed the current market rates, ensuring profitability even in a challenging economic environment. This ZIP code provides a solid foundation for investors looking to stabilize their rental income streams without relying heavily on speculative growth.
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.