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DSCR MARKET DATA · DETROIT, MI · 2026

Detroit — Workforce SFR DSCR That Still Pencils in 2026

$90K SFR · $1,100 rent · 1.22% R/P in stabilized east-side workforce zones · DSCR 1.15–1.65 with active property management. Detroit is zones-only — neighborhood selection drives every outcome.

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DSCR Market Data · Detroit, MI · Zones only

Detroit, MI DSCR Market Snapshot · 2026 Q1

1.22%

R/P ratio

Stabilized workforce zones · east side

1.30

Avg DSCR

Across 5 zones · 80% LTV / 7.5%

$90K

Median SFR price

Zillow ZHVI · 2026 Q1 (east-side workforce)

$1,100

Median monthly rent

Zillow ZORI · 2026 Q1

CASH-FLOW-VALIDATED ZONES

Detroit DSCR Neighborhoods That Pencil in 2026

East English Village

ZIP 48224

$95K–$145K · DSCR 1.20–1.45 · Stable owner-occupant pocket

Morningside

ZIP 48224

$80K–$130K · DSCR 1.25–1.50 · Adjacent EEV · workforce SFR

Bagley

ZIP 48221

$110K–$175K · DSCR 1.15–1.35 · Northwest · larger SFR

Cornerstone Village

ZIP 48205

$70K–$110K · DSCR 1.35–1.65 · Tenant-PM critical

Springwells

ZIP 48209

$75K–$120K · DSCR 1.30–1.55 · Southwest · Latino workforce base

WHY DETROIT WORKS

Why Detroit for DSCR Investors

Detroit is zones-only DSCR. The 'don't buy Detroit' headlines were earned in the wrong zones — Brightmoor, Belmont, vacant-by-the-block neighborhoods. In stabilized workforce zones east of I-75 and select southwest pockets, $80K–$120K SFR rents $1,000–$1,400/mo and pencils DSCR 1.25+ with competent property management.

  • Lowest entry prices in the top-15 — $70K–$120K SFR in workforce zones
  • Workforce employment base — Ford Rouge, Chrysler Jefferson North, Stellantis, healthcare clusters
  • DSCR underwrites at 1.25+ in 5 validated zones with proper neighborhood selection
  • Section-8 voucher demand strong via Detroit Housing Commission
  • Property tax 2.5–3.0% effective is the structural cost — overcome by R/P in the $70K–$110K band

Detroit Workforce SFR DSCR 2026 — read the full market intel →

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HOW DETROIT COMPARES

How Detroit Compares to Other Top-Tier DSCR Markets

Detroit's entry-price advantage ($90K median in workforce zones) means R/P stays above 1.2% even with a 2.5–3.0% property tax burden. Compared to Cleveland (0.94% R/P, 2.2% tax) and Memphis (0.88% R/P, 0.7% tax), Detroit requires more PM intensity but rewards it with the highest entry-yield in the top 15.

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DATA SOURCES

Where This Detroit DSCR Data Comes From

Median price + rent: Zillow ZHVI / ZORI 2026 Q1 (workforce zones). R/P derived from ATTOM Data + MLS comps. Vacancy from BLS CEW. Property tax from City of Detroit + Wayne County. HUD FMR via huduser.gov. Last refreshed 2026-05-16.

Market data is informational only and does not constitute a loan offer. Verify all subject-property numbers via comparative market analysis before underwriting.

FREQUENTLY ASKED

Detroit DSCR Lending Questions

Detroit is zones-only DSCR. In five validated workforce zones (East English Village, Morningside, Bagley, Cornerstone Village, Springwells), $80K–$120K SFR pencils DSCR 1.25+ at 80% LTV / 7.5%. Outside those zones — the 'don't buy Detroit' headline neighborhoods — DSCR breaks below 1.0 fast. Neighborhood selection drives every outcome.

Across the five validated zones, DSCR averages 1.30 at 80% LTV / 7.5%. Cornerstone Village SFR pencils 1.35–1.65 with active property management. East English Village stabilized SFR runs 1.20–1.45. Property tax 2.5–3.0% effective is the structural drag.

Yes — five validated zones: East English Village (48224), Morningside (48224), Bagley (48221), Cornerstone Village (48205), Springwells (48209). Avoid Brightmoor, Belmont, and any zone with sub-50% occupancy density — these are the 'don't buy Detroit' zones for a reason.

Detroit's $70K–$120K workforce SFR price band sits inside most DSCR lenders' minimums — $75K loan-amount floor is typical. We structure around that with bridge-to-DSCR or portfolio loans when individual SFR loans fall below the lender minimum.

Detroit demands more PM intensity than any other top-15 market. Start by interviewing 2-3 Detroit PM companies BEFORE running numbers. Then run the DSCR calculator with Detroit tax (2.5–3.0%) and insurance defaults baked in. Pre-qualification in 24 hours.

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