Rental Property Underwriting in Detroit, MI
Nominal high yields; assessment-to-market gap is the trap.
Typical SFR price
$80,000 – $180,000
3-bed rent (monthly)
$1,100 – $1,500
Effective property-tax rate
2.50% – 3.20%
Insurance (annual, ~$300k SFR)
$1,100 – $1,800
Gross rent-to-price (monthly)
0.90% – 1.30%
Landlord-tenant climate
balanced
Ranges compiled from Zillow, Redfin, and county assessor public data. Last reviewed 2025-10. Use as directional inputs, not appraisals.
What makes underwriting in Detroit different
- Property is often over-assessed relative to market — file appeal in year one.
- Rental registration and Certificate of Compliance required before leasing.
- Auction and tax-sale acquisitions have real title risk — get owner's title policy.
Quick worked example
Mid-range Detroit deal: $130,000 purchase, $1,300/mo rent → gross yield 12.00%. Whether that cash-flows depends on your rate, down payment, taxes at post-sale assessment, and insurance quote — not the metro average.
Other US markets we cover
Rental underwriting in Atlanta, GA →Rental underwriting in Charlotte, NC →Rental underwriting in Raleigh, NC →Rental underwriting in Tampa, FL →Rental underwriting in Orlando, FL →Rental underwriting in Jacksonville, FL →Rental underwriting in Phoenix, AZ →Rental underwriting in Las Vegas, NV →Rental underwriting in Dallas, TX →Rental underwriting in Houston, TX →Rental underwriting in Austin, TX →Rental underwriting in San Antonio, TX →
Educational content only, not investment or legal advice. Verify all numbers with local professionals before making an offer.