BRRRR · Market Playbook
How to BRRRR in Detroit, MI
BRRRR in Detroit is a 20.99% gross yield play — $1,338/mo rent on a $76k median. Whether that cash-flows depends on your debt cost.
Data: Zillow Research (via scrape.do) · As of April 2026
Detroit is a workable BRRRR market — tight but bankable math on disciplined deals.
- → Gross yield 20.99% — above national baseline
- → Rent $1,338/mo vs. national $1,930 — rent-weak
- → DSCR expectation at 75% LTV / 7.5%: 1.20+ comfortable
- → Appreciation risk to refi: meaningful softening, stress comps
Start with the gross math. Detroit's typical home value is $76,488; ZORI (Zillow's rent index) sits at $1,338/mo. That's 20.99% gross annual yield. That's well above the national 4-5% baseline — meaningful cushion for a BRRRR to pencil even at today's debt cost.
Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs you should clear DSCR 1.20+ in Detroit with comfortable headroom. Cash-flow at $200-400/door is achievable on a properly underwritten property.
Rent demand color: Detroit rents ($1,338) sit 31% below the national median ($1,930). Local rent is the constraint here — even at favorable acquisition prices, the rent side of the math is the limiting factor.
Refi appraisal risk: Detroit home values are down 3.9% YoY. That's the biggest threat to your refi — if you're underwriting today and refinancing in 8 months, comps may have softened further. Stress-test your refi ARV at -5% of today's median.
Detroit at a glance
The numbers above pull from the full Detroit market report.
- Median value
- $76k
- YoY
- -3.9%
- Median rent
- $1,338
- Gross yield
- 20.99%
Other strategies for Detroit
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