Is Detroit, MI a Good STR Investment in 2026?
3,224 active listings
Top Market
Median Price
$99,967
STR Revenue/mo
$2,259
Cap Rate
13.2%
1Y Appreciation
-3%
Avg Nightly Rate
$148
Market Score
95.9/100
Market Overview
Detroit, MI presents a strong opportunity for real estate investors in 2026, with a market score of 95.9 out of 100. The median home price sits at $99,967 with average short-term rental revenue of $2,259 per month, yielding a 13.2% cap rate.
Short-Term Rental Performance
Short-term rental hosts in Detroit average $2,259 in monthly revenue with a 58.6% occupancy rate. This translates to approximately $27,108 in annual gross revenue for a typical listing. The average nightly rate is $148.
Investment Analysis
Assuming a 20% down payment at 7% interest on a $99,967 property, your monthly mortgage would be approximately $532. After accounting for mortgage, taxes, and insurance, the estimated monthly cash flow for an STR is $567.
The long-term rental market shows potential with median rents at $1,150 per month. Home values have declined 3% year-over-year, so investors should factor in potential equity loss when evaluating returns.
Our Verdict
Detroit ranks among the top investment markets with a score of 95.9/100. Strong cap rates make it attractive for cash-flow-focused investors. However, declining home values (-3%) mean investors should focus on cash flow rather than equity growth.