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 | $750 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,420 | $224,700 | 0.63% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 48744 reveals that the HUD Fair Market Rent (FMR) of $1130 for FY 2024 significantly exceeds the local market rent of $970 as reported by the Census American Community Survey (ACS). This means that voucher tenants can generate positive cash flow at the HUD FMR rate, even when considering the lower market rents observed in the area.
To further understand the investment potential, the median home value in ZIP 48744 is $188,776. Using this figure, we can calculate the rent-to-price ratio, which stands at approximately 0.51%. This ratio suggests that rental income represents a small portion of the property's total value, indicating a strong preference for homeownership over renting in this region. However, the higher FMR compared to the market rent still makes Section 8 properties attractive for investors seeking guaranteed cash flow.
Note that the median days on market (DOM) and the percentage of price cuts are not available, but these metrics would typically be relevant in assessing the balance between renting and buying. Given the significant gap between the HUD FMR and the market rent, the primary focus for investors should be on the cash flow generated by voucher tenants rather than on the appreciation or stability of property values.
The strongest investor angle in ZIP 48744 is undoubtedly the cash flow potential, as the guaranteed HUD FMR payments provide a substantial cushion above the typical market rent, ensuring profitability for Section 8 landlords and small-portfolio investors.
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.