Rental Property Investing in Detroit, MI

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The numbers

Median sale price

$99,999

Median monthly rent

$1,250

Rent / price

1.25%

Estimated cap rate

10.9%

Estimated monthly cash flow

$372

Estimated cash-on-cash

19.4%

Sale prices

rising

Rents

rising

County population change (5 yrs)

0.9%

County unemployment

6.0%

Measured in ZIP 48227 on 2026-10-19. That’s one established investor neighborhood, not the whole city. The cash flow and cash-on-cash figures run the median price and rent through the calculator’s defaults (20% down, 7% interest, 30-year loan, a flat 1.1% property tax rate, standard vacancy, repairs and management), so they describe a typical house in that zip.

What to know about Detroit

Detroit has very low purchase prices and some of the highest property tax rates of any large US city, so the tax line can eat much of the rent advantage. Michigan also reassesses a property's taxable value when it sells, which means the seller's tax bill is not the one you'll pay.

The city requires landlords to register each rental and hold a Certificate of Compliance, valid for three years, before they can legally collect rent. Ask for that paperwork on any address before you make an offer.

Landlord and tenant rules in Michigan

• Overall: balanced
• Security deposit limit: 1.5 months' rent
• Rent control: no statewide rent control
• Notice for unpaid rent: 7 days

General information only, not legal advice. Landlord-tenant law changes and varies by city/county within a state. Verify current rules with a local attorney or your state's housing authority before relying on this. More on this in tenant-friendly vs landlord-friendly states.

Check a real deal in Detroit

Market medians point you at a city. Whether one house works depends on its own price, rent and repair needs, so paste them into the calculator, or read how cash-on-cash return and a good cap rate are worked out. If you’re buying from far away, the out-of-state guide covers property managers and remote closings.

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