Before you read the numbers: these estimates assume every home is rent-ready. ApriFind doesn't have condition data yet, so repairs needed to reach these rents are not included, and in Detroit many low-priced homes need substantial work. Property tax uses Detroit's published 2025 rate for rental (investor-owned) property (3.70%). See What these numbers assume.
Detroit is famous for cheap houses and high property taxes. Both show up in the data. In our ranking of the 50 largest US metros, it had the second-highest share of listings with positive cash flow, behind Cleveland. We ran every active for-sale listing in the city through ApriFind on October 9, 2026 and analyzed 2,869 properties, each with a rent estimate built from nearby comparable rentals.
Key takeaways
- 50% of listings show positive cash flow at 20% down and 7% interest, even with Detroit's 3.70% rental tax rate, the highest of any large US city. The median listing roughly breaks even ($5 per month), with a 6.4% median cap rate.
- The strongest ZIPs are on the east and west sides: 48205, 48234, 48204, 48238, and 48213, where 71–83% of listings cash-flow at median prices of $78,900–$115,000.
- Under $100,000, 98% of listings cash-flow on paper, compared with 32% at $100,000–$200,000. These are also the homes most likely to need major repairs.
- Downtown and Midtown don't work for cash flow: in 48201 and 48202, 5% or fewer of listings cash-flow at current prices.
- Cash flow comes with location risk. 99% of cash-flowing listings are in neighborhoods with an Apri Score of 6–10 (10 = weakest); in 4–7 areas, 19% of listings cash-flow.
Returns by ZIP code
ZIP codes with at least 40 analyzed listings, ranked by the share with positive cash flow.
| ZIP | Listings | Median price | Median est. rent | Median cap rate | Median monthly cash flow | Listings that cash-flow |
|---|---|---|---|---|---|---|
| 48205 | 203 | $78,900 | $1,288 | 10.4% | $270 | 83% |
| 48234 | 133 | $82,000 | $1,300 | 10.2% | $269 | 81% |
| 48204 | 119 | $93,900 | $1,450 | 10.4% | $326 | 79% |
| 48238 | 204 | $115,000 | $1,500 | 9.7% | $300 | 73% |
| 48213 | 79 | $95,000 | $1,375 | 10.8% | $253 | 71% |
| 48203 | 40 | $92,450 | $1,300 | 8.5% | $164 | 70% |
| 48228 | 223 | $84,900 | $1,300 | 9.6% | $225 | 70% |
| 48227 | 244 | $109,000 | $1,398 | 8.6% | $186 | 66% |
| 48219 | 172 | $90,000 | $1,400 | 7.6% | $90 | 58% |
| 48224 | 261 | $115,000 | $1,387 | 7.5% | $85 | 57% |
| 48223 | 87 | $110,000 | $1,298 | 6.8% | $31 | 51% |
| 48235 | 170 | $132,200 | $1,400 | 5.2% | −$120 | 39% |
| 48215 | 50 | $166,950 | $1,500 | 3.7% | −$377 | 30% |
| 48206 | 118 | $239,950 | $1,950 | 3.5% | −$546 | 27% |
| 48221 | 194 | $185,000 | $1,500 | 3.4% | −$477 | 19% |
| 48207 | 73 | $224,500 | $1,338 | −3.3% | −$1,691 | 14% |
| 48214 | 122 | $264,900 | $1,372 | −0.1% | −$1,451 | 7% |
| 48202 | 103 | $285,000 | $1,736 | 0.0% | −$1,388 | 5% |
| 48201 | 49 | $425,000 | $1,562 | −1.9% | −$2,859 | 0% |
Returns by property type and price
| Property type | Listings | Median price | Median est. rent | Median cap rate | Listings that cash-flow |
|---|---|---|---|---|---|
| Single family | 2,241 | $110,000 | $1,362 | 6.8% | 53% |
| Multi-family (whole building) | 369 | $160,000 | $2,399 | 8.9% | 69% |
| Condo | 184 | $255,000 | $1,341 | −2.3% | 5% |
| Townhouse | 75 | $389,000 | $1,725 | −1.1% | 8% |
| Price range | Listings | Median est. rent | Median cap rate | Listings that cash-flow |
|---|---|---|---|---|
| Under $100,000 | 1,084 | $1,300 | 11.8% | 98% |
| $100,000–$200,000 | 1,109 | $1,425 | 5.3% | 32% |
| $200,000–$300,000 | 359 | $1,632 | 1.8% | 7% |
| $300,000 and up | 317 | $1,782 | −1.0% | 2% |
Negative cap rates mean expenses (driven by Detroit's high tax rate and, for condos, HOA dues) exceed the estimated rent.
Returns by Apri Score (neighborhood rating)
The Apri Score is ApriFind's proprietary 1-to-10 neighborhood rating, built from census-level socioeconomic data including income, education, employment, and housing quality. It compares each neighborhood with others in the same state: 1 is among the strongest, 10 among the weakest. ApriFind shows it on every listing and as a map layer. It's built to show, before you make an offer, whether a high return comes with a weaker location. See the Apri Score for every listing in any city.
| Apri Score | Share of listings | Median price | Median est. rent | Median cap rate | Median monthly cash flow | Listings that cash-flow |
|---|---|---|---|---|---|---|
| 1–3 (strongest) | 6% | $375,000 | $1,644 | −1.5% | −$2,489 | 1% |
| 4–7 | 11% | $199,000 | $1,500 | 2.6% | −$636 | 19% |
| 8–10 (weakest) | 83% | $115,000 | $1,385 | 7.3% | $78 | 56% |
Based on the 2,434 listings with an Apri Score.
Detroit's cash flow is almost entirely in its weakest neighborhoods. 83% of listings are in Apri Score 8–10 areas, and 56% of those cash-flow on paper. In 1–3 areas, prices are more than three times higher for similar rents, and with Detroit's 3.70% rental tax rate, the median cap rate is negative. Of all the listings that cash-flow, just 1% are in areas scoring 1–5.
Weaker areas can mean more tenant turnover, longer vacancies, more collection problems, older housing, and slower appreciation, while these figures assume the same 5% vacancy everywhere. The middle band is smaller but workable: 19% of Apri Score 4–7 listings, 52 properties, showed positive cash flow.
Detroit asking rents by bedrooms
Median asking rent for single-family and townhouse rentals on the market:
| Bedrooms | Median asking rent | Rentals |
|---|---|---|
| 1 | $900 | 81 |
| 2 | $1,050 | 266 |
| 3 | $1,350 | 531 |
| 4 | $1,600 | 66 |
| 5+ | $1,700 | 19 |
What these numbers assume
1. Every home is rent-ready. Rent estimates come from comparable rentals currently on the market, which are homes in rentable condition. ApriFind doesn't have condition data yet, and in Detroit that matters a great deal: many homes under $100,000 need new roofs, mechanicals, windows, or full renovations before a tenant can move in. The cost of that work is not included here. The 98% cash-flow rate under $100,000 describes those homes after they're rent-ready. Get an inspection and a repair estimate before relying on any of these numbers.
2. Property tax uses Detroit's rental rate. We use 3.70%, the Lincoln Institute's 2025 effective tax rate for rental (investor-owned) property in Detroit. Rentals in Michigan don't get the owner-occupied (homestead) exemption, so Detroit landlords pay more than owner-occupants (3.70% vs 3.02% for a median-valued owner-occupied home in the same study). If taxes were half a point higher still, 48% of listings would cash-flow.
3. Rent estimates are estimates. Rent estimates are based on asking rents from comparable rental listings nearby, which can run above what tenants ultimately sign for. Check them against local leasing evidence before relying on them.
4. Financing and expenses. 20% down, 7.0% 30-year fixed mortgage, 5% vacancy, 10% property management, 10% maintenance reserve, insurance, and HOA dues where listed.
5. Some listings are excluded. We left out 413 listings priced far below comparable homes nearby, or whose estimated rent was far above what similar listings nearby earn (often shells, auction starting bids, or listings under $30,000), along with vacant land. This "Verify condition" flag is a rough filter: it can't detect a property's actual condition, so homes needing major work remain in these figures.
Methodology
All active for-sale listings with a Detroit, MI address on October 9, 2026 (data from RentCast), analyzed with ApriFind. Each property's rent comes from ApriFind's proprietary rent model, which considers comparable rentals nearby and how closely they match on factors including location, property type, size, bedrooms, bathrooms, and age. Multi-family rent is the estimated rent for the whole building. Cap rate is net operating income divided by price; cash flow is rent minus all costs including the mortgage.
Listings change daily. Search Detroit on ApriFind to see today's listings with your own down payment, rate, tax rate, and expense assumptions.
FAQ
Can you cash-flow a rental in Detroit with high property taxes? On paper, yes: 50% of active Detroit listings showed positive cash flow at 20% down and 7% interest in our October 2026 analysis, even using Detroit's 3.70% rental tax rate. Those numbers assume rent-ready homes, and many low-priced Detroit homes need major repairs first.
What is the property tax rate on a Detroit rental property? The Lincoln Institute's 2025 study puts Detroit's effective tax rate on rental property at 3.70% of market value, the highest of the largest cities it covers. Owner-occupied homes pay less because of Michigan's homestead exemption.
Are Detroit's cash-flowing rentals in weaker neighborhoods? Almost entirely. In our October 2026 data, 99% of listings with positive cash flow were in areas with an Apri Score of 6–10, ApriFind's 1-to-10 neighborhood rating where 10 is weakest. In Apri Score 4–7 areas, 19% of listings cash-flowed.
Which Detroit ZIP codes have the best rental returns? 48205, 48234, and 48204 had the highest share of listings with positive cash flow (79–83%), with median prices between $78,900 and $93,900.
ApriFind provides informational tools only and does not provide investment, financial, legal, or tax advice. Figures are estimates from listing data on one date; actual results vary.