Real Estate Investing in Chelsea, Michigan (48118)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 48118 (Chelsea, MI)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
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.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Chelsea, MI (48118)?
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Market Analysis: 48118 Chelsea
Investors eyeing 48118 need to respect the fundamentals at play. Home values of $420K come alongside slower price movement and elevated management overhead.
On the rental side, the numbers look inviting — $420K purchase price, 0.0% nominal cap — the work to hit that pro forma in 48118 is substantial and deserves full respect.
Nearby ZIPs in Chelsea have seen price recovery that 48118 has not matched. Washtenaw County data supports the view that the spread is structural rather than temporary.
Demographically, 48118 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.
The right play in 48118 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Chelsea:
Property Strategy for 48118
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $296,389 | $1,960 | 4.8% | +5.8% | $148,194 |
| 3BR | $387,742 | $2,350 | 4.4% | +6.0% | $129,247 |
| 4BR | $489,825 | $2,600 | 3.8% | +6.5% | $122,456 |
| 5BR | $569,566 | — | — | +6.8% | $113,913 |
Market Trends
Home Value History (with trend line)
📊 How Does 48118 Compare?
| Metric | 48118 | Chelsea | Ann Arbor, MI | Michigan |
|---|---|---|---|---|
| Home Value | $420,265 | $420,265 | N/A | $253,279 |
| 5-Year CAGR | 2.0% | 2.0% | N/A | 6.8% |
| Avg Rent | $1,764 | $1,764 | N/A | - |
| Cap Rate | 3.3% | 3.3% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 48118 (Chelsea, MI). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $420,265 |
| Monthly Rent | $1,764 |
| Price-to-Rent | 19.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.0% |
| Cap Rate | 3.3% |
| 5-Year IRR | 5.3% |
📈 Home Appreciation
| 1-Year | +5.1% ▲ |
| 3-Year CAGR | +0.3% ▲ |
| 5-Year CAGR | +2.0% ▲ |
| 10-Year CAGR | +3.4% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.3%). 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 48118
Population: 13,088
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 48118
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.
Frequently Asked Questions
What is the typical vacancy rate in Chelsea, MI?
Occupancy in Chelsea, MI runs measured with elevated vacancy. Well-priced units at $1,764/mo lease on reasonable timelines.
How much rent can I charge in Chelsea, MI?
Chelsea, MI rentals go for roughly $1,764/mo a month. That puts gross yield in solid territory relative to $420K acquisition costs.
Can I live-in-and-rent in Chelsea, MI?
House hacking in Chelsea, MI is a challenging. With home values around $420K and rents at $1,764/mo, owner-occupants can offset a meaningful share of PITI.
Are homes affordable in Chelsea, MI?
Chelsea, MI home values average about $420K. That price point suits investors targeting rentals with $1,764/mo in monthly income.
Is Chelsea, MI a good place for real estate investing?
Chelsea, MI records an investability rating of 3.0/5, with median home values near $420K and average rents around $1,764/mo. That combination puts it in the robust tier for investor interest.
You know 48118 now. You don’t know where it ranks.
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