Real Estate Investing in Dearborn Heights, Michigan (48125)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 48125 (Dearborn Heights, MI)? Our answer, based on the numbers below.
Strong fundamentals — affordable, appreciating, and stable. A confident pick for primary residence.
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 Dearborn Heights, MI (48125)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 48125 Dearborn Heights
This part of Wayne County is not an easy win. The 48125 ZIP clocks in at softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Rent of $1,575/mo on a $166K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 48125 sits below the stated 0.0% once reality is priced in.
The gap between 48125 and stronger Dearborn Heights ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Demographically, 48125 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 48125 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 Dearborn Heights:
Property Strategy for 48125
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $127,666 | $1,570 | 8.9% | +10.4% | $63,833 |
| 3BR | $167,311 | $1,920 | 8.3% | +8.8% | $55,770 |
| 4BR | $185,443 | $2,080 | 8.1% | +8.3% | $46,361 |
| 5BR | $234,844 | — | — | +8.5% | $46,969 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 48125 Compare?
| Metric | 48125 | Dearborn Heights | Detroit-Warren-Dearborn, MI | Michigan |
|---|---|---|---|---|
| Home Value | $165,740 | $216,626 | N/A | $253,279 |
| 5-Year CAGR | 5.8% | 5.9% | N/A | 6.8% |
| Avg Rent | $1,575 | $1,493 | N/A | - |
| Cap Rate | 7.4% | 5.8% | - | - |
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 48125 (Dearborn Heights, 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 | $165,740 |
| Monthly Rent | $1,575 |
| Price-to-Rent | 8.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 11.4% |
| Cap Rate | 7.4% |
| 5-Year IRR | 13.2% |
📈 Home Appreciation
| 1-Year | +4.5% ▲ |
| 3-Year CAGR | +5.9% ▲ |
| 5-Year CAGR | +5.8% ▲ |
| 10-Year CAGR | +10.0% ▲ |
🏠 Rent Trends
| 1-Year | +3.3% ▲ |
| 3-Year CAGR | +5.4% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) is close to the estimated cap rate (7.4%). Financing this market at current rates produces a cash-on-cash return near the cap rate. Appreciation and tax benefits may still support the investment.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 48125
Population: 22,156
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 48125
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
David Hicks School
WhitmoreBolles Elementary School
Nowlin Elementary School
Smith Middle School
Snow 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
What kind of market is Dearborn Heights, MI for investors?
With a 3.0/5 investability score, Dearborn Heights, MI ranks as a solid market for rental property investors. Median prices of $166K and rents of $1,575/mo drive the underlying numbers.
What is the median home value in Dearborn Heights, MI?
Median home price in Dearborn Heights, MI is near $166K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
How tight is the rental market in Dearborn Heights, MI?
Dearborn Heights, MI vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Is Dearborn Heights, MI better for rentals, flips, or BRRRR?
A careful cash-flow rentals with hands-on management strategy Dearborn Heights, MI best. The market produces steady results for that approach at the $166K price point.
How strong are rents in Dearborn Heights, MI?
Rents in Dearborn Heights, MI run near $1,575/mo. Compared with median home prices of $166K that produces solid gross yields for typical rentals.
You know 48125 now. You don’t know where it ranks.
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How 48125 ranks in Detroit-Warren-Dearborn, MI
Every ZIP in this metro, ranked. Free.
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