Side-by-side comparison of Detroit, MI and Ann Arbor, MI — cap rates, rent, prices, and investment metrics.
Cash flow: Detroit has the edge with an estimated cap rate of 4.70% compared to Ann Arbor's 2.61%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $165,000 in Detroit vs $395,000 in Ann Arbor, while rents come in at $1,050/mo and $1,680/mo respectively.
Growth & appreciation: Ann Arbor is growing faster at 0.8% annually, while Detroit is losing population. Ann Arbor leads on home value appreciation at 3% per year.
Costs & risk: Property taxes are 1.54% in Detroit vs 1.48% in Ann Arbor. Vacancy rates of 7.8% and 4.2% are mixed — Ann Arbor has the tighter rental market.
Bottom line: Ann Arbor edges out Detroit on most key metrics. While cap rates are moderate at 2.61%, Ann Arbor's overall profile is stronger. Use our free calculators to model specific deals in Detroit or Ann Arbor.