Real Estate Investing in Dearborn, Michigan (48120)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 48120 (Dearborn, MI)? Our answer, based on the numbers below.
Solid choice — values are growing steadily and the market is stable enough to buy with confidence.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated poverty: 25.0% poverty rate — can affect rent collection.
What’s happening in Dearborn, MI (48120)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 48120 Dearborn
ZIP 48120 in Dearborn, MI carries a solid set of headwinds. Home values near $255K and rents of $1,525/mo sit inside a market where underwriting has to be tight.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 48120 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
On balance, 48120 offers a low basis, the region around Dearborn has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
A notable renter share of 60% in 48120 is not, on its own, a problem — but paired with below-average income and high mobility, it changes the operating playbook.
Distressed ZIPs reward experience. impressive returns are possible in 48120, but they flow to investors who already understand how to operate in soft markets.
Here's what matters if you're considering buying a home in Dearborn:
Property Strategy for 48120
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $218,240 | $1,800 | 5.9% | +10.0% | $109,120 |
| 3BR | $283,465 | $2,200 | 5.6% | +8.5% | $94,488 |
| 4BR | $246,062 | $2,380 | 7.0% | +9.2% | $61,516 |
| 5BR | $206,498 | — | — | +10.5% | $41,300 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 48120 Compare?
| Metric | 48120 | Dearborn | Detroit-Warren-Dearborn, MI | Michigan |
|---|---|---|---|---|
| Home Value | $255,450 | $264,150 | N/A | $253,279 |
| 5-Year CAGR | 6.9% | 6.6% | N/A | 6.8% |
| Avg Rent | $1,525 | $1,793 | N/A | - |
| Cap Rate | 4.7% | 5.3% | - | - |
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 48120 (Dearborn, MI). Anonymous, moderated, never written by AI.
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Property managers serving Wayne County
Manage rentals here? List your business →Metro Detroit Property Management manages and maintains properties with high standards, committed to the success of real estate investments in the Metro Detroit area. summary from their website
Michigan Property Management Solutions offers homes for rent in Michigan, near Macomb Twp., Fraser, Utica, Clinton Valley, and Detroit. summary from their website
Premier Property Services offers real estate services in Detroit, Fort Lauderdale, and Grosse Pointe Woods. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $255,450 |
| Monthly Rent | $1,525 |
| Price-to-Rent | 14.0:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.2% |
| Cap Rate | 4.7% |
| 5-Year IRR | 11.6% |
📈 Home Appreciation
| 1-Year | +5.4% ▲ |
| 3-Year CAGR | +7.2% ▲ |
| 5-Year CAGR | +6.9% ▲ |
| 10-Year CAGR | +7.9% ▲ |
🏠 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 (4.7%). 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 48120
Population: 8,771
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 48120
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Harms Elementary School
Maybury Elementary School
Geer Park Elementary School
Henry Ford Elementary School
Lowrey Elementary School
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 6,511 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How much does a house cost in Dearborn, MI?
In Dearborn, MI the median home value sits at $255K. Against the broader MI market, that reads as reasonable for most investors.
Are renters plentiful in Dearborn, MI?
Dearborn, MI draws a predictable base of working renters. Demand at the $1,525/mo rent level is reasonable for standard single-family and small multi rentals.
What do landlords charge for rent in Dearborn, MI?
Rent in Dearborn, MI is around $1,525/mo. The resulting rent-to-value relationship with $255K pricing is reasonable for most investor models.
How do landlord-tenant laws work in Dearborn, MI?
MI law landlord-friendly for landlords, and Dearborn inherits those rules. Investors should still review local ordinances for rental licensing.
Is Dearborn, MI good for house hacking?
House hacking in Dearborn, MI is a challenging. With home values around $255K and rents at $1,525/mo, owner-occupants can offset a meaningful share of PITI.
You know 48120 now. You don’t know where it ranks.
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How 48120 ranks in Detroit-Warren-Dearborn, MI
Every ZIP in this metro, ranked. Free.
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