Market Analysis
Detroit Rental Market
Rental investment market data and analysis · Updated November 2026
Median Home Price
$94,950
Average Monthly Rent
$1,350
Estimated Cap Rate
17.1%
Rent-to-Price Ratio
1.4%
Passes 1% Rule
Rent ÷ price by zip code
3 of 4 clear the 1% rule · November 2026
| Zip | Median price | Median rent | Rent ÷ price |
|---|---|---|---|
| 48207 | $90,000 | $1,500 | 1.67% |
| 48228 | $84,900 | $1,250 | 1.47% |
| 48227 | $99,900 | $1,250 | 1.25% |
| 48221 | $173,000 | $1,400 | 0.81% |
Rent ÷ price over time
PacRent rent-to-price index · Detroit
Context · FRED home price index
Market Trends
Detroit metro area — % change since 2018
Home Prices
+82.1%
Rent Index
+38.8%
Average Rent by Bedroom
| Bedrooms | Avg Rent |
|---|---|
| Apartment | $1,056/mo |
| Multi-Family | $1,075/mo |
| Condo | $1,275/mo |
| Townhouse | $1,388/mo |
| Single Family | $1,406/mo |
Sample Investment Analysis
Based on median price + average rent, 20% down, 6.8% rate, 30yr
Purchase Price$94,950
Down Payment (20%)$18,990
Monthly P&I$495
Monthly Rent$1,350
Est. NOI$9,720/yr
Est. Cash Flow$315/mo
Cash on Cash18.1%
Positive cash flow at median prices — Detroit offers strong fundamentals for buy-and-hold investors.
What Investors Should Know About Detroit
- 1Strong cap rates above 7% — excellent cash flow potential
- 2Market passes the 1% Rule — strong rent-to-price ratio for cash flow investors
- 3Below-average rents keep entry costs low for new investors
- 4Affordable market — lower barrier to entry for first-time investors
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