Rental property in Detroit, MI
2026 Market Data & Investment Analysis
Gross Yield
12%
Annual rent / price
Median Home Price
$95,000
As of 2026-Q1
Median Monthly Rent
$950
Per month
Population
620,376
-0.9% / yr (5y avg)
Estimates based on median market data. Actual returns depend on your specific property. Source: Zillow Research / U.S. Census Bureau, 2026-Q1.
Calculate your rental yield in Detroit
Pre-filled with Detroit's median values. Adjust to match your specific property.
Property Details
Total acquisition cost before taxes
HOA, insurance, property management
% of time the property is empty
% of purchase price (e.g. 2% = 2)
Rule of thumb: 1% of purchase price/yr
Results
Gross Rental Yield
12.00%
Net Rental Yield
7.87%
Cap Rate
7.87%
Monthly Cash Flow
$623.33
Annual Cash Flow
$7,480.00
Detroit rental market at a glance
Median Home Price — 5-Year Trend
Median Monthly Rent — 5-Year Trend
Detroit offers significantly above-average rental yields of 12%, making it an attractive market for income-focused investors.
Declining population of 0.9% per year may pose risks to long-term rental demand. Investors should focus on established neighborhoods with stable tenant bases.
The vacancy rate of 11.5% is above average, which could impact cash flow consistency. Thorough tenant screening and competitive pricing are important in this market.
What type of investment market is Detroit?
Detroit is a cash flow-focused market where high rental yields can generate strong monthly income. Lower population growth means price appreciation may be limited, making this primarily an income play.
✓ Strengths
- •High gross yield of 12% supports strong monthly cash flow
- •Lower entry prices relative to rents reduce upfront capital needed
- •Income-driven returns are less dependent on market timing
! Risks
- •Limited price appreciation potential reduces total return
- •Declining population may increase vacancy risk over time
Key Metrics
How does Detroit compare to nearby cities?
Detroit vs Cleveland: 2.0 percentage point difference in gross yield.
| City | Median Price | Median Rent | Gross Yield | Pop. Growth |
|---|---|---|---|---|
| Cleveland, OH | $120,000 | $1,000 | 10% | -0.5% |
| Pittsburgh, PA | $180,000 | $1,200 | 8% | -0.3% |
| Columbus, OH | $250,000 | $1,350 | 6.5% | +1.1% |
| Chicago, IL | $290,000 | $1,600 | 6.6% | -0.5% |
| Indianapolis, IN | $235,000 | $1,300 | 6.6% | +0.8% |
Common questions about investing in Detroit
Is rental investing profitable in Detroit?▾
What is the average rental yield in Detroit?▾
How does Detroit compare to Cleveland for investors?▾
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