
Strong Section 8 Deal
Section 8 deal score (0–100)
$80,000.00
+$980/mo Section 8 PremiumHUD SAFMR: $1,620.00/mo
Est. market rent: $640.00/mo
HUD SAFMR rent is estimated at $980.00 above estimated market rent.
20196 Hartwell St, Detroit, MI 48235
PHA & Market Context
Detroit Housing Authority
Wayne County, MI
County est. Section 8 yield: 9.3%
PHAs deduct utility allowances (Form 52641) from gross rent before issuing the HAP payment to the landlord.
Register as a Section 8 landlord with Detroit Housing Authority before executing a lease. Strong voucher demand — SAFMR often supports above-market rents.
Investor Strategy & Negotiation
Listed for 52 days on Zillow.
Target Offer: $64,000.00 (-20%)
Seller Motivation Alert: This property has been listed for 52 days. Consider making an aggressive initial offer around $64,000.00 (20% below asking) to test seller flexibility while capitalizing on the high Section 8 rent gap.
Monthly Cash Flow
$390.83
Cap Rate
10.8%
Cash-on-Cash
18.2%
HUD FMR / Unit
$1,620.00
Itemized Financial Breakdown
| Line Item | Monthly |
|---|---|
| Est. Gross Rent (underwriting) | +$1,228.00 |
| Property Management (8%) | -$98.24 |
| Property Taxes (1.2% annual) | -$80.00 |
| Insurance ($100/unit) | -$100.00 |
| Maintenance Reserve (5%) | -$61.40 |
| Vacancy Reserve (5%) | -$61.40 |
| Net Operating Income (NOI) | +$826.96 |
| Debt Service (P&I @ 6.5%) | -$436.13 |
| Net Monthly Cash Flow | +$390.83 |
Assumes 25% down, 6.5% interest, 30-year fixed. FMR from HUD 2026 payment standards for 48235.
