After periods of economic challenges, the future of Detroit looks bright. High-tech companies like Microsoft and Google are opening offices, and investors are seizing the opportunity to buy rental property at attractive prices.
44% of the households in Detroit are renter-occupied and rent prices have increased 25% over the past 3 years.
We recently looked at neighborhoods in Detroit to find great investment properties.
Key takeaways
- Although home prices in Detroit have increased by nearly 34% over the past year, the city is ranked as a buyer’s market with more homes for sale than there is demand.
- Many neighborhoods in Detroit have median home prices of less than $100K, offering the opportunity to purchase an investment property at an attractive price point.
- Some of the neighborhoods in Detroit to consider buying a rental property include Morningside, Corktown, and Hubbard Richard.
>>Explore Roofstock's Detroit investment properties here.
Why invest in Detroit?
Low housing prices, rising home values and rent prices, and a large percentage of renter-occupied households are just a few of the many reasons to consider investing in Detroit this year.
Over the past year, the typical value of a mid-tier home in Detroit increased by nearly 34%, according to Zillow (through Dec. 2021). Realtor.com ranks Detroit as a buyer’s market, meaning that the supply of homes for sale is greater than the demand, offering a potential window of opportunity for buying investment property in Detroit.
15 great areas in Detroit for investment properties
Here are 15 neighborhoods in Detroit for investors to consider. Neighborhood-level data comes from Realtor.com, Niche.com, and Redfin as of December 2021.
Morningside
Morningside is bordered by I-94 to the north and Mack Avenue to the south and is located just east of Chandler Park. The neighborhood has a sparse urban feel with a lot of parks:
- Population: 12,499
- Median sale price: $101,000
- Change in sales price (year over year): 34.8%
- Days on market: 28
- Median rent: $963
- Renter-occupied households: 37%
- Median household income: $32,868
- ZIP code: 48224
Bagley
The Bagley neighborhood in Detroit is just south of Eight Mile Road (SR 102), between Detroit Medical Center Sinai-Grace Hospital and Palmer Park. The neighborhood has a sparse suburban feel:
- Population: 11,802
- Median sale price: $168,000
- Change in sales price (year over year): 37.2%
- Days on market: 24
- Median rent: $973
- Renter-occupied households: 34%
- Median household income: $43,133
- ZIP code: 48221
Warrendale
Warrendale is a suburban neighborhood located west of Downtown Detroit, near the Henry Ford Museum of American Innovation. The neighborhood has a sparse suburban feel with a lot of parks:
- Population: 19,389
- Median sale price: $63,000
- Change in sales price (YoY): 98.4%
- Days on market: 21
- Median rent: $910
- Renter-occupied households: 51%
- Median household income: $23,475
- Zip code: 48228
Greenfield
Greenfield is located northwest of Downtown Detroit, and is bordered by the John C. Lodge Freeway to the east and Eight Mile Road to the north. The neighborhood has a suburban feel with a lot of parks:
- Population: 8,277
- Median sale price: $94,500
- Change in sales price (year over year): 107.7%
- Days on market: 28
- Median rent: $862
- Renter-occupied households: 43%
- Median household income: $28,042
- ZIP code: 48235
Cornerstone Village
The Cornerstone Village neighborhood in Detroit is located just east of the Morningside neighborhood, south of the intersection of I-94 and Moross Road. The area has a sparse suburban feel :
- Population: 8,947
- Median sale price: $54,000
- Change in sales price (year over year): -1.8%
- Days on market: 27
- Median rent: $952
- Renter-occupied households: 44%
- Median household income: $32,734
- ZIP code: 48236
Brush Park
The Brush Park neighborhood in Detroit is located just north of the Financial District in Downtown Detroit and is ranked as one of the best places to live in Michigan. The neighborhood is home to a lot of socially active professionals and has an urban feel with numerous bars, restaurants, coffee shops, and parks:
- Population: 1,385
- Median sale price: $414,500
- Change in sales price (year over year): -23.9%
- Days on market: 62
- Median rent: $717
- Renter-occupied households: 68%
- Median household income: $53,370
- ZIP code: 48201
Corktown
Corktown is located just west of the Financial District near the Detroit River. The neighborhood has an urban feel with a lot of bars and restaurants:
- Population: 3,108
- Median sale price: $615,000
- Change in sales price (year over year): 10.7%
- Days on market: 123
- Median rent: $1,187
- Renter-occupied households: 67%
- Median household income: $62,325
- ZIP codes: 48216, 48226, 48201
Downtown
Downtown Detroit is ranked as the fourth best neighborhood in Michigan by Niche.com. many people find the downtown area a good place to live, with 90% of the homes occupied by renters. There are a lot of bars, restaurants, coffee shops, and parks in the area:
- Population: 7,035
- Median sale price: $350,000
- Change in sales price (year over year): -21.8%
- Days on market: 39
- Median rent: $1,330
- Renter-occupied households: 90%
- Median household income: $68,503
- ZIP codes: 48201, 48207, 48226, 48243
Lafayette Park
Lafayette Park is located just east of the Financial District within walking distance of the West River Walk and William G. Milliken State Park and Harbor. The neighborhood is popular with renters, has a dense urban feel:
- Population: 5,933
- Median sale price: $147,500
- Change in sales price (year over year): -1.0%
- Days on market: 58
- Median rent: $859
- Renter-occupied households: 79%
- Median household income: $32,734
- ZIP code: 48207, 48226
Woodbridge
The Woodbridge neighborhood is located just north of Downtown and Corktown and is bordered by I-94 to the north and Grand River Avenue to the west. Woodbridge has a dense suburban feel, with nearly half of the households renting rather than owning:
- Population: 1,911
- Median sale price: $250,000
- Change in sales price (year over year): -14.2%
- Days on market: 32
- Median rent: $979
- Renter-occupied households: 49%
- Median household income: $68,232
- ZIP codes: 48201, 48208
Hubbard Richard
The Hubbard Richard neighborhood is located just south of Corktown, between I-96 and Rosa Parks Boulevard. Hubbard Richard has an urban feel, and is a neighborhood with a large percentage of renters:
- Population: 1,059
- Median sale price: $85,000
- Change in sales price (year over year): -73.4%
- Days on market: (no homes currently for sale)
- Median rent: $473
- Renter-occupied households: 64%
- Median household income: $30,148
- ZIP code: 48216
Buffalo Charles
Buffalo Charles is a neighborhood located in the Detroit suburb of Hamtramck, north of Downtown Detroit. The neighborhood has a sparse suburban feel, and receives high rankings from Niche.com:
- Population: 8,588
- Median sale price: $120,000
- Change in sales price (year over year): 26.3%
- Days on market: 13
- Median rent: $816
- Renter-occupied households: 32%
- Median household income: $28,490
- ZIP codes: 48211, 48212
Hubbard Farms
Hubbard Farms neighborhood in Detroit is located west of Hubbard Richard, on the other side of I-96. Hubbard Farms is ranked as one of the top 10 neighborhoods in Detroit by Niche.com and has an urban feel, with more than half of residents renting their homes:
- Population: 1,115
- Median sale price: $110,000
- Change in sales price (year over year): -30.8%
- Days on market: 64
- Median rent: $613
- Renter-occupied households: 58%
- Median household income: $31,944
- ZIP code: 48216
Indian Village
Indian Village is a suburban neighborhood that is popular. Located east of the city, the neighborhood has a dense suburban feel where nearly half of the homes are occupied by renters:
- Population: 1,633
- Median sale price: $762,415
- Change in sales price (year over year): 39.3%
- Days on market: 7
- Median rent: $957
- Renter-occupied households: 46%
- Median household income: $70,250
- ZIP code: 48214
Chadsey Condon
The Chadsey Condon neighborhood is known for its nightlife and large percentage of renters. Located near the Corktown and Hubbard Farms neighborhoods, Chadsey Condon has a dense suburban feeling along with affordable home prices:
- Population: 6,767
- Median sale price: $73,750
- Change in sales price (year over year): -0.5%
- Days on market: 39
- Median rent: $760
- Renter-occupied households: 47%
- Median household income: $29,215
- ZIP code: 48208
>>Explore Roofstock's Detroit investment properties here.
