Detroit, MI variant. This is a Detroit, MI-specific version of the Rental Yield Calculator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Rental Yield Calculator.
Detroit's gross rental yield - annual rent ÷ property price - is about 16.5%, based on $1,100/month rent on a $80,000 median home.
Rental yield in Detroit
Gross yield = ($1,100 × 12) ÷ $80,000 = 16.5%. Net yield subtracts property tax (1.94%), insurance, vacancy, and maintenance.
High-price metros tend to show lower yields (price outruns rent); affordable metros often yield more. Detroit's yield is attractive for cash-flow investors.
About Detroit, MI
Detroit imposes a city income tax on residents and on people who work in the city, in addition to Michigan state income tax.
Detroit has some of the most affordable home prices among major US cities, reflecting decades of population decline and ongoing revitalization.
Detroit's economy remains closely tied to the automotive industry, with growing diversification into technology and services.
Worked example: Detroit yield
Annual rent $13,200 ÷ price $80,000 = 16.5% gross. After 1.94% property tax and ~1% maintenance, net yield is meaningfully lower.
Quick reference
- Median home value: $80,000
- Median rent: $1,100/mo
- Median household income: $39,575
- Local sales tax: 6%
- City income tax: 2.4%
- Effective property tax rate: 1.94%
- Cost of living index: 80 (US avg = 100)
Frequently Asked Questions
What is a good rental yield?
Many investors target 6-8% gross; Detroit runs about 16.5%.
How is rental yield calculated?
Gross yield = annual rent ÷ purchase price. Net yield also subtracts taxes, insurance, vacancy, and upkeep.