BRRRR Investing in Detroit, MI

BRRRR Score: 7.6/10Ranked #1 of 52 markets

Data-driven brrrr analysis for Detroit, MI — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

BRRRR Score:7.6
Cap Rate(30%)
11.2%9.2
Affordable Entry Price(25%)
$85,0009.5
Rent-to-Price Ratio(25%)
1.24%9.4
Population Growth(20%)
-2.8%0.6

Key Metrics for BRRRR

Median Price

$85,000

Very affordable

Cap Rate

11.2%

Strong

Rent-to-Price

1.24%

Post-refi cash flow indicator

Pop. Growth

-2.8%

5-year trend

BRRRR Investment Thesis

Detroit offers the lowest entry prices for BRRRR, but be cautious — appraisals on refinance can be challenging in some neighborhoods where there are not enough comparable renovated sales. Focus on areas with active renovation to ensure your ARV holds up.

How Detroit Compares

RankCityBRRRR ScoreCap RateMedian Price
#1Detroit, MI7.611.2%$85,000
#2Cleveland, OH6.79.8%$105,000
#3Memphis, TN6.29.2%$130,000
#4Toledo, OH6.29.0%$88,000

Showing markets ranked near Detroit for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,050/mo)$12,600
Less: Vacancy (12.9%)-$1,625
Less: Property Tax (2.76%)-$2,346
Less: Insurance (~0.5%)-$425
Less: Maintenance (~1.5%)-$1,275
Estimated NOI$6,929
Implied Cap Rate8.2%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the brrrr score for Detroit, MI?

Detroit, MI scores 7.6 out of 10 on our brrrr score, ranking #1 out of 52 markets we track. Weighted composite: cap rate (30%), affordable entry price (25%), rent-to-price ratio (25%), population growth (20%). Scale 0–10.

Is Detroit a good city for brrrr investing?

Yes — Detroit, MI ranks in the top 10 for brrrr investing with a score of 7.6/10. Key factors include a median home price of $85,000, cap rate of 11.2%, and population growth of -2.8%.

What is the average cap rate in Detroit?

The average cap rate in Detroit, MI is 11.2%. The median home price is $85,000 with a median monthly rent of $1,050, resulting in a rent-to-price ratio of 1.24%.

What are the property taxes in Detroit?

The effective property tax rate in Detroit, MI is 2.76%. On a $85,000 property, that translates to approximately $2,346 per year in property taxes.

How does Detroit compare to other brrrr markets?

Among our 52 tracked markets, Detroit, MI ranks #1 for brrrr investing. It is one of the top-performing markets for this strategy.

What is the typical entry price for BRRRR deals in Detroit?

The median home price in Detroit, MI is $85,000. Distressed BRRRR-eligible properties typically sell for 60-70% of median value, putting estimated acquisition costs around $55,250. After rehab, the goal is to refinance at or near the full $85,000 after-repair value.

Run Your Own Numbers for Detroit

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