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.
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 code | 2-bed | 3-bed | 4-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.
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.
Screen free →10 free screens · no card · all 50 states