Location: Monroe, MI | Metro: Monroe, MI MSA
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 | $880 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $219,851 | 0.57% | F |
| 3BR | $1,540 | $313,009 | 0.49% | F |
| 4BR | $2,080 | $412,456 | 0.5% | F |
| 5BR | $2,413 | $427,036 | 0.57% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 49270, located in Petersburg, MI, within the Monroe, MI MSA metro area, reveals several key points regarding its suitability for Section 8 real estate investment.
Firstly, the rent math does not work favorably for landlords. The Fair Market Rent (FMR) set at $1140 for fiscal year 2024 is significantly higher than the actual market rent reported by the Census ACS, which stands at $918. This discrepancy suggests that landlords might struggle to attract tenants willing to pay the higher FMR rates, thus making it less attractive from a financial standpoint.
Secondly, the acquisition cost of homes in this area is relatively affordable. With a median home value of $306,717, potential investors could find properties at a reasonable price point. However, the lack of available data on days on market (DOM) and the percentage of homes needing price cuts indicates a less transparent market. This could mean either a stable market with few sales, or a lack of comprehensive data on recent transactions, which is crucial for assessing property value trends.
Lastly, tenant demand is modest. The population of 5,567 residents has only a 7.7% renter share. This low percentage implies that there may not be a robust pool of potential tenants, which could affect the ability to consistently lease out properties.
In conclusion, while the median home value offers an affordable entry point for acquisition, the mismatch between the FMR and market rent, combined with a limited tenant base, presents challenges for successful Section 8 investments in ZIP 49270. Landlords should carefully consider these factors before committing to property purchases in this area.
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.