Real Estate Investing in Detroit, Michigan (48235)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 48235 (Detroit, MI)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
- Elevated vacancy: 11.7% vacancy may signal weakening demand.
- Elevated poverty: 24.6% poverty rate — can affect rent collection.
- Higher unemployment: 7.3% unemployment — tenant risk signal.
- Lower household income: $38,901 median — tenant affordability is tighter.
What’s happening in Detroit, MI (48235)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 48235 Detroit
In Detroit's 48235 ZIP, the arithmetic favors hands-on owners. Median home values clocks in at $94K, leaving spread for capex-heavy BRRRR or reposition strategies.
Investors in 48235 do not buy the market average — they buy the unit they can improve. $94K median pricing and $1,316/mo comps define the envelope within which the work has to pay.
Across MI, value-add opportunity tends to concentrate where housing stock is older and entry prices are below the state median. ZIP 48235 registers both traits clearly.
The a viable market for angle on demographics here is renter willingness to pay a premium for renovated product. The 47% rental share provides scale for the strategy.
Experienced operators with contractor networks find 48235 a solid fit for. First-time flippers often underestimate scope, budget, and timeline, which is how deals here turn sour.
Here's what matters if you're considering buying a home in Detroit:
Property Strategy for 48235
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $67,061 | $1,330 | 14.3% | +11.3% | $33,530 |
| 3BR | $103,359 | $1,620 | 11.3% | +9.3% | $34,453 |
| 4BR | $133,685 | $1,760 | 9.5% | +9.4% | $33,421 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 48235 Compare?
| Metric | 48235 | Detroit | Detroit-Warren-Dearborn, MI | Michigan |
|---|---|---|---|---|
| Home Value | $93,938 | $99,748 | N/A | $253,279 |
| 5-Year CAGR | 3.3% | 0.9% | N/A | 6.8% |
| Avg Rent | $1,316 | $1,292 | N/A | - |
| Cap Rate | 10.9% | 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 48235 (Detroit, 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 | $93,938 |
| Monthly Rent | $1,316 |
| Price-to-Rent | 6.0:1 |
| 1% Rule | ✓ Passes |
💰 Return Metrics
| Gross Yield | 16.8% |
| Cap Rate | 10.9% |
| 5-Year IRR | 14.2% |
📈 Home Appreciation
| 1-Year | +1.3% ▲ |
| 3-Year CAGR | +4.4% ▲ |
| 5-Year CAGR | +3.3% ▲ |
| 10-Year CAGR | +11.9% ▲ |
🏠 Rent Trends
| 1-Year | +2.5% ▲ |
| 3-Year CAGR | +5.0% ▲ |
| 5-Year CAGR | N/A |
The estimated cap rate (10.9%) exceeds the current 30-yr mortgage rate (6.8%). When borrowing costs less than a property yields, leverage can increase your cash-on-cash return above the cap rate.
⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 48235
Population: 46,960
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 48235
Schools in This ZIP Code
About Repit School Scores
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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
Frequently Asked Questions
How strong are rents in Detroit, MI?
Rent in Detroit, MI is around $1,316/mo. The resulting rent-to-value relationship with $94K pricing is reasonable for most investor models.
Can you recycle capital via BRRRR in Detroit, MI?
BRRRR in Detroit, MI is a strong. The interplay of $94K values and $1,316/mo rents creates reasonable refinance conditions.
Which real estate strategy fits Detroit, MI?
For Detroit, MI, value-add and BRRRR deals is the standard investor playbook. The market structure makes it a reasonable default approach.
How expensive is real estate in Detroit, MI?
In Detroit, MI the median home value sits at $94K. Against the broader MI market, that reads as reasonable for most investors.
How does Detroit, MI rate as a rental market?
Investors tracking Detroit, MI will find a 5.0/5 rating supported by $94K median home values and $1,316/mo rents. That profile suits long-term holders targeting consistent returns.
You know 48235 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 48235 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 48235 ranks in Detroit-Warren-Dearborn, MI
Every ZIP in this metro, ranked. Free.
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