Detroit is now the hottest market for landlords

The monthly mortgage payments in Detroit are far less than average monthly rents for the same properties

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From the Summer 2014 issue of the magazine.

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(iStock)

(iStock)

Motor City is hardly one of the more desirable places to live in the United States, but data provided by RealtyTrac shows that Detroit offers U.S. real estate buyers the biggest return on their investment. Thanks to ultra-low housing prices, the monthly mortgage payments in Detroit are far less than average monthly rents for the same properties. As you can see below, you can still charge a reasonable rent in depressed areas, so the cheaper the house, the bigger the profit.

American counties with the biggest real estate returns:

Detroit-Warren-Livonia, Mich.

Median home price: $44,900

Avg. monthly rent: $1,124

30% annual return

Greenville, Miss.

Median home price: $42,000

Avg. monthly rent: $862

25% annual return

Atlanta-Sandy Springs-Marietta, Ga.

Median home price: $50,750

Avg. monthly rent: $1,187

28% annual return

Macon, Ga.

Median home price: $50,880:

Avg. monthly rent: $1,008

24% annual return

Source: RealtyTrac, based on median sales prices for Jan. 2014 and average fair market rents.

6 comments on “Detroit is now the hottest market for landlords

  1. We got consider the occupancy of Tennants, wheather people want to rent in those areas.

    Reply

  2. Canadian can buy house in detroit?
    What is procedure?

    Reply

  3. Where can I find out vacancy rate in mi?

    Reply

  4. Consider the taxes before you buy.

    Reply

  5. There are also other qualitative factors you have to consider instead of the numbers. What is the vacancy rate like in detroit? What type of tenants will you be getting? The crime rate? etc. You don’t want to be stuck with a house that you will be paying out of your pocket. Houses that are priced at such usually have other factors and they should be discussed in this article.

    Reply

  6. I’d be interested to know the vacancy rates…are there even people left in the Detroit area??? I hear its abandoned?!

    Reply

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