Location: Livingston County, MI | Metro: Livingston County, MI HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,360 |
| 1 Bedroom | $1,500 |
| 2 Bedrooms | $1,720 |
| 3 Bedrooms | $2,380 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 landlords in ZIP 48855 in Howell, MI, presents several challenges. Tenant turnover is a significant concern, as the market rent stands at $1,501, while the Fair Market Rent (FMR) for FY 2024 is set at $1,540. This discrepancy can lead to higher tenant churn, especially if the market conditions change. Landlords must be prepared to handle frequent transitions, which can be costly and time-consuming.
Vacancy exposure is another risk factor. With an average Days on Market (DOM) of 16 days, landlords might face periods where units remain unoccupied, leading to lost rental income. In a competitive market, maintaining occupancy rates requires proactive management and possibly offering incentives that can impact profitability.
The deferred-maintenance exposure is substantial due to the typical home value of $376,326 and a median household income of $108,442. The disparity between property values and income levels suggests that tenants may struggle to afford maintenance costs, placing the burden on landlords. Ensuring that properties are well-maintained without overextending financial resources is critical.
However, these risks are offset by the high concentration of renters in the area, with a renter share of 10.1%. High renter density often translates into robust demand for housing vouchers, which can provide a steady stream of tenants. This demand helps mitigate some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 48855 is moderate.
Data Sources: FMR data from HUD (2027). 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.