Real Estate Investing in Detroit, Michigan (48202)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 48202 (Detroit, MI)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- High vacancy: 26.3% of homes vacant — above national norms.
- Declining values: -2.5% 5-year CAGR — values have moved lower.
- 1-year downturn: Values declined 5.4% in the last year.
- Higher unemployment: 7.0% unemployment — tenant risk signal.
What’s happening in Detroit, MI (48202)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 48202 Detroit
The 48202 ZIP covers a section of Detroit that demands careful diligence. Prices near $181K look accessible, but the work to make a deal cash flow is real.
The investment case in 48202 is healthy only for operators who understand what they are buying. A $181K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Statewide comparisons place 48202 among MI's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
Who lives in 48202 is part of why the ZIP is priced as it is. The demographic profile requires hands-on management, tight screening, and local knowledge.
Distressed ZIPs reward experience. durable returns are possible in 48202, 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 Detroit:
Property Strategy for 48202
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $177,836 | $1,030 | 4.2% | -4.3% | $177,836 |
| 2BR | $240,093 | $1,290 | 3.9% | -0.4% | $120,047 |
| 3BR | $176,957 | $1,580 | 6.4% | +2.1% | $58,986 |
| 4BR | $222,388 | $1,710 | 5.5% | +4.0% | $55,597 |
| 5BR | $295,588 | — | — | +3.5% | $59,118 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 48202 Compare?
| Metric | 48202 | Detroit | Detroit-Warren-Dearborn, MI | Michigan |
|---|---|---|---|---|
| Home Value | $180,552 | $99,748 | N/A | $253,279 |
| 5-Year CAGR | N/A | 0.9% | N/A | 6.8% |
| Avg Rent | $1,323 | $1,292 | N/A | - |
| Cap Rate | 5.7% | 11.9% | - | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 48202 (Detroit, MI). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 48202 (Detroit, MI)?
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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 | $180,552 |
| Monthly Rent | $1,323 |
| Price-to-Rent | 11.4:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 8.8% |
| Cap Rate | 5.7% |
| 5-Year IRR | 3.2% |
📈 Home Appreciation
| 1-Year | -5.4% ▼ |
| 3-Year CAGR | -1.2% ▼ |
| 5-Year CAGR | -2.5% ▼ |
| 10-Year CAGR | +4.2% ▲ |
🏠 Rent Trends
| 1-Year | -6.4% ▼ |
| 3-Year CAGR | -0.7% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (5.7%). 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 48202
Population: 14,792
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 48202
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 10,003 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the smart move for investors in Detroit, MI?
Most investors in Detroit, MI run a careful cash-flow rentals with hands-on management strategy. It aligns with the 3.0/5 investability profile and the market fundamentals.
How tight is the rental market in Detroit, MI?
Detroit, MI carries elevated vacancy risk. Expect steady absorption at market rents of $1,323/mo.
What is the average monthly rent in Detroit, MI?
Expect rents around $1,323/mo per month in Detroit, MI. With home values at $181K, the yield math works out to reasonable levels for rental investors.
Is Detroit, MI good for house hacking?
House hacking in Detroit, MI is a challenging. With home values around $181K and rents at $1,323/mo, owner-occupants can offset a meaningful share of PITI.
Is the tenant base reliable in Detroit, MI?
Tenant demand in Detroit, MI is solid. The local workforce $1,323/mo rents across most rental classes.
You know 48202 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 48202 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 48202 ranks in Detroit-Warren-Dearborn, MI
Every ZIP in this metro, ranked. Free.
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