Real Estate Investing in Ann Arbor, Michigan (48105)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 48105 (Ann Arbor, MI)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Ann Arbor, MI (48105)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 48105 Ann Arbor
Not every below-median market is a bargain. Ann Arbor's 48105 ZIP posts signals that favor experienced operators who can absorb the risk $564K pricing implies.
Put differently, the numbers look inviting — $564K purchase price, 0.0% nominal cap — the work to hit that pro forma in 48105 is substantial and deserves full respect.
Regionally, 48105 sits on the difficult end of the MI spectrum. The worth a close look for read — for disciplined operators — is that pricing reflects the difficulty.
Demographically, 48105 is a market where tenant selection matters more than unit finishes. Operators who understand that tend to do fine; those who do not tend to learn why the ZIP trades at a discount.
New investors are better served looking at Ann Arbor's stable or hybrid ZIPs before stepping into 48105. The learning curve here is expensive when the lesson is wrong.
Here's what matters if you're considering buying a home in Ann Arbor:
Property Strategy for 48105
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $323,434 | $1,920 | 4.3% | +4.0% | $161,717 |
| 3BR | $476,974 | $2,300 | 3.5% | +5.3% | $158,991 |
| 4BR | $631,274 | $2,540 | 2.9% | +5.4% | $157,819 |
| 5BR | $935,433 | — | — | +6.3% | $187,087 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 48105 Compare?
| Metric | 48105 | Ann Arbor | Ann Arbor, MI | Michigan |
|---|---|---|---|---|
| Home Value | $563,676 | $237,355 | N/A | $253,279 |
| 5-Year CAGR | 4.4% | 4.9% | N/A | 6.8% |
| Avg Rent | $2,297 | $2,084 | N/A | - |
| Cap Rate | 3.2% | 3.0% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 48105 (Ann Arbor, MI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $563,676 |
| Monthly Rent | $2,297 |
| Price-to-Rent | 20.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.9% |
| Cap Rate | 3.2% |
| 5-Year IRR | 7.6% |
📈 Home Appreciation
| 1-Year | +5.2% ▲ |
| 3-Year CAGR | +4.0% ▲ |
| 5-Year CAGR | +4.4% ▲ |
| 10-Year CAGR | +5.2% ▲ |
🏠 Rent Trends
| 1-Year | -2.0% ▼ |
| 3-Year CAGR | 0.0% ▼ |
| 5-Year CAGR | +2.2% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.2%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 48105
Population: 36,959
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 48105
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 6,143 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Do rentals sit vacant long in Ann Arbor, MI?
Rental vacancy in Ann Arbor, MI is elevated. Investors should budget normal turnover but not chronic empty units.
What are rental rates like in Ann Arbor, MI?
Rental rates in Ann Arbor, MI average $2,297/mo. Tenant demand and $564K home values make the yield look reasonable by investor standards.
Does a duplex house hack pencil in Ann Arbor, MI?
The a challenging house-hack environment in Ann Arbor, MI reflects the rent-to-price spread. Expect meaningful PITI offset at market rents.
How expensive is real estate in Ann Arbor, MI?
Median home price in Ann Arbor, MI is near $564K, with a 5-year CAGR of 0.0%. Prices have been reliable and supportive of buy-and-hold strategies.
What is the best play in Ann Arbor, MI?
For Ann Arbor, MI, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
You know 48105 now. You don’t know where it ranks.
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How 48105 ranks in Ann Arbor, MI
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