CloseHound
APrimeWAYNE COUNTY · MIDWEST

Is Detroit a Good Section 8 Market for Cash Flow?

Detroit, MI earns an A on CloseHound, our top grade for Section 8 cash flow. Voucher rent here routinely beats market, and the median 3-bedroom voucher of $1,500/mo supports a purchase price around $150,000 on the 1% rule. Across nine sampled Wayne County ZIPs the 3-bed range spans $1,330 to $1,670, giving the Midwest's deepest voucher-to-price spread.

The honest catch: voucher rents far exceed price only on the right block, so you verify rehab scope and neighborhood block by block, not by ZIP. Property tax runs about 1.4% and insurance roughly 0.8%, both manageable. Screen any Detroit address free on CloseHound to see the cash-on-cash before you offer.

$1,500/mo
Median 3-bed voucher
$150,000
Supported price
1% rule, illustrative
1.4%
Property tax
of value / yr
0.8%
Insurance
of value / yr

Detroit HUD Section 8 voucher rents by ZIP (FY2026)

Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.

ZIP code2-bed3-bed4-bed
48201$1,250/mo$1,530/mo$1,660/mo
48205$1,300/mo$1,590/mo$1,720/mo
48206$1,110/mo$1,360/mo$1,470/mo
48213$1,090/mo$1,330/mo$1,440/mo
48219$1,370/mo$1,670/mo$1,810/mo
48227$1,220/mo$1,490/mo$1,620/mo
48228$1,230/mo$1,500/mo$1,630/mo
48235$1,330/mo$1,620/mo$1,760/mo
48238$1,160/mo$1,420/mo$1,540/mo

Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.

The honest read

Voucher rents far exceed price on the right block. Verify rehab + neighborhood block-by-block.

More Section 8 markets in Michigan

Detroit Section 8 FAQ

What's the Section 8 voucher rent for a 3-bed in Detroit?+

The median 3-bedroom voucher rent in Detroit is about $1,500/mo for FY2026, with sampled ZIPs ranging from $1,330 to $1,670 depending on the area.

Is Detroit a good Section 8 market?+

Yes. Detroit grades A, our top tier, meaning voucher rent routinely beats market and supports strong cash-on-cash before financing. The catch is that the spread holds only on the right block, so vet each property individually.

What home price does the Detroit voucher support?+

At the $1,500/mo median 3-bed voucher, the 1% rule points to a supported price near $150,000. Property tax around 1.4% and insurance near 0.8% are the main carrying costs to underwrite.

How do I find cash-flowing Section 8 deals in Detroit?+

Pull listings in the higher-voucher Wayne County ZIPs, then run each address through CloseHound free to compare the asking price against the voucher rent and confirm the cash-on-cash holds after rehab.

Screen Detroit deals free

See which Detroit listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.

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