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 | $780 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $258,185 | 0.54% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,100 for ZIP 48464 in fiscal year 2024 will adequately cover the mortgage on a home priced at $232,083. To evaluate this, we must consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly payment for a $232,083 home would be approximately $1,250. Therefore, the FMR of $1,100 would fall short by around $150 per month.
The investor might also wonder if there's sufficient rental demand given that only 4.9% of the housing stock is rented. According to the data, the rental market in ZIP 48464 is relatively small, with renters making up 13.3% of the population. However, the low percentage of rental units does not necessarily mean a lack of demand. The rental vacancy rate stands at 23.5%, which is higher than the national average of 11.2%. This suggests that while there is some excess supply, the market could still accommodate new rental properties.
Another concern is whether housing vouchers will keep pace with the market rents, which are estimated at $1,333. The voucher program aims to provide affordable housing options, but the actual amount can vary based on local conditions and federal guidelines. While the FMR of $1,100 is below the market rent, it is possible that some voucher holders might be able to negotiate higher rent payments or receive additional subsidies to bridge the gap.
In summary, the FMR of $1,100 may not fully cover the mortgage on a $232,083 home, indicating that landlords or investors might need to rely on other sources of income or increase rent above the FMR to break even. The rental market, though small, does have room for new properties, and while vouchers might not fully meet market rents, they can still offer a significant subsidy to tenants.
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.