Location: Lenawee County, MI | Metro: Lenawee County, MI
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 | $800 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $185,457 | 0.62% | D |
| 3BR | $1,450 | $234,905 | 0.62% | D |
| 4BR | $1,510 | $281,488 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 49235, located in Clayton, MI, presents a dynamic rental market that is closely aligned with federal guidelines. The Fair Market Rent (FMR) for the area is set at $1,090, reflecting the metro region's fiscal year 2026 budget standards. This figure is slightly above the market rent of $1,052, as reported by the Census American Community Survey (ACS). While specific percentages for price cuts and days on market (DOM) are not available, the median home value of $236,506 suggests a stable property market.
The 17.4% renter share indicates a significant portion of the population relies on rental housing, which can imply ongoing housing pressure. With a notable number of residents choosing to rent rather than buy, it signals a potential demand for rental properties. Landlords and small-portfolio investors should take note of this trend, as it suggests a steady need for rental units in the area.
The proximity of the FMR to the market rent also points towards a balanced market where supply meets demand. However, the slight premium of FMR over market rent could indicate a minor undersupply of affordable housing units. This dynamic provides opportunities for investors who can offer quality rentals at or near the FMR, ensuring they meet the needs of tenants while adhering to HUD guidelines.
In conclusion, ZIP 49235 offers a promising market for those interested in real estate investments, particularly in the rental sector. The current snapshot suggests a stable environment with a slight bias towards demand, driven by the significant renter share and the close alignment of market rents with FMRs. This makes it an attractive location for both landlords and investors looking to capitalize on the existing housing dynamics without the risk of oversupply.
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.