The Best Zip Codes for Section 8 Investing in Detroit with Stu Hicks

Why This Episode Matters for Affordable Housing Investors

When most people think of Detroit, they picture headlines about crime, abandoned houses, and economic collapse. What they miss is that Detroit is also the number one market in the United States for Section 8 housing on a per capita basis. For investors who want strong returns, consistent tenant demand, and the ability to make a social impact, Detroit is a goldmine—if you know where to look.

In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He welcomes back Stu Hicks, widely known as the “King of Section 8 in Detroit.” Stu has been working on the ground for years, helping landlords navigate the complex world of vouchers, tenant placement, and neighborhood selection. His advice is blunt, practical, and rooted in real-world experience. If you want to succeed in Detroit’s affordable housing market, this conversation is your roadmap.

What Are the Best Zip Codes in Detroit for Section 8 Investing?

Not all neighborhoods in Detroit are created equal. Some zip codes have strong tenant demand, stable schools, and high voucher approval rates. Others are almost impossible to lease due to reputation, abandonment, or safety issues.

According to Stu Hicks, the top Detroit zip codes for Section 8 investing include:

• 48221 – The most desirable area in the city, especially for long-term stability.
  
  

• 48235, 48227, 48228, and 48229 – Strong Westside neighborhoods with steady demand.
  
  

• 48224 – Eastside favorite, home to Morningside and East English Village subdivisions.
  
  

• Parts of 48215 and 48213 – Near Jefferson, where $200,000+ rehabs are happening.
  
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On the flip side, 48205—often nicknamed “42 or Die”—is one to avoid unless you’re investing north of Seven Mile, where conditions improve.

How Do Families in Detroit Get Section 8 Vouchers Faster?

The Detroit waitlist for Section 8 vouchers can stretch 7 to 10 years, depending on the agency. But certain groups can accelerate the process.

Stu explains that families who are homeless or survivors of domestic violence can apply through rapid rehousing agencies such as CAM (Coordinated Assessment Model). By first registering at a licensed shelter, they get immediate access to caseworkers, social workers, and housing specialists who help them transition more quickly into permanent housing.

This means that investors providing quality, well-managed homes aren’t just filling units—they’re directly helping vulnerable families rebuild stability.

Should Investors Focus on Single Family Homes or Duplexes?

A common mistake out-of-state investors make is assuming duplexes offer double the income. In Detroit’s Section 8 market, that logic doesn’t always hold.

Stu warns that tenants with three-bedroom vouchers overwhelmingly prefer single-family homes over three-bedroom flats in duplexes. Landlords often end up renting the entire duplex to one tenant with a four-bedroom voucher, earning less than expected.

His advice: focus on single-family rentals in the right neighborhoods. They lease faster, retain tenants longer, and align better with what families actually want.

What Do Investors Get Wrong About Fair Market Rents (FMR)?

New landlords often pull up HUD’s Fair Market Rent (FMR) tables and assume that’s exactly what they’ll be paid. Stu sets the record straight:

• FMR is just a guideline, not a guarantee.
  
  

• Voucher amounts vary by agency budgets and tenant circumstances.
  
  

• In Detroit, one tenant with a three-bedroom voucher might get $1,200, while another agency could issue $1,800 for the same unit.
  
  

This is why networking with local experts and agencies is critical. Online numbers alone can’t tell the whole story.

How Do You Protect Detroit Rental Properties from Squatters and Theft?

Detroit’s large inventory of vacant homes makes squatting a real issue. Stu has seen everything from stolen furnaces to break-ins during renovations. His recommendations include:

• Posting signs: “No furnace or tank installed here.”
  
  

• Boarding windows from inside and out with multiple screws.
  
  

• Hiring security companies like DAWGS, which install steel doors and plates ($700–$1,500 plus monthly rental).
  
  

• Installing motion-sensor alarms and cameras that loudly announce, “Smile, you’re being recorded.”
  
  
  

While no system is foolproof, these steps make your property less attractive to opportunists.

Key Insights from Stu Hicks

• Tenant demand in Detroit is as strong as ever, especially as agencies issue new vouchers.
  
  

• Single-family homes outperform duplexes in the Section 8 space.
  
  

• Avoid relying solely on FMR when underwriting deals—agency budgets vary widely.
  
  

• Renovate “cheap and cheerful”: solid, durable, mid-grade finishes that make the home livable and appealing.
  
  

• Section 8 tenants often outperform cash tenants, with far fewer cases of property damage.
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Memorable Quotes from Stu Hicks

“Stop disappointing yourself. Invest in things people actually want to live in.”

“There’s no such thing as a bad home. There could be a bad situation surrounding that home.”

“Cash tenants destroy homes four to five times more than Section 8 tenants do.”

“If you’re not from Detroit, don’t rely on the media. Talk to the people on the ground who actually know the neighborhoods.”

Common Questions This Episode Answers

Q: What are the best zip codes in Detroit for Section 8 investing?
A: Westside favorites like 48221, 48235, 48227, and Eastside zip 48224 are top picks, along with pockets of 48215 and 48213

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Q: How long is the waitlist for a Section 8 voucher in Detroit?
A: Typically 7–10 years, but survivors of abuse or homeless families can qualify more quickly through rapid rehousing agencies.

Q: Should I buy duplexes or single-family homes for Section 8?
A: Stick with single-family rentals. They lease faster and attract more stable tenants than duplexes with three-bedroom flats.

Q: Are Section 8 tenants riskier than cash tenants?
A: No. In fact, Section 8 tenants are far less likely to damage properties because they don’t want to risk losing their vouchers.

Q: How do I protect my property from squatters in Detroit?
A: Use steel doors, board windows inside and out, and install motion-sensing alarms and cameras.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to equip investors with practical tools and insider knowledge to grow their portfolios while creating long-term community impact.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.