Rent vs buy in Detroit, MI
In Detroit, Michigan, the typical rent is $1,328 /mo and the typical home value is $74,742.
Over 7 years, buying comes out ahead by $72k.
At today's mortgage rate, this assumes 20% down and Detroit's typical rent and home value. Break-even reached in year 1.
Clearly labelled opinion with math shown. These are estimates, not quotes. The stamp changes when a number changes.
- How far ahead owning is
- $72k after 7 years
- Break-even point
- year 1 when owning catches up
- Actual cost of owning
- $775 /mo year 1, against $1,328 rent
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The stamp takes Detroit's typical rent and home value as its basis. Your rent, home price and number of years can change the result.
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Enter your own figures for rent, price and down payment. The stamp updates based on those figures.
Is it cheaper to rent or buy in Detroit?
After counting the money you get back when you sell, buying costs $71,752 less than renting over 7 years. In year 1, owning's net cost falls under renting's and remains lower.
Renting. Owning. Net cost by year so far.
Average rent compared with mortgage payment in Detroit
Rent and mortgage payments don't cover all the costs. Every monthly expense in year 1 appears here, using Detroit's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $1,328 | All of it, every month |
| Mortgage payment | $407 | $359 of it is interest in year 1 |
| Property tax | $104 | 1.67% of the value a year |
| Insurance | $97 | Census median for the city |
| Upkeep | $62 | 1% of the value a year |
| Owning, cash out | $671 | $48 of it builds equity |
| Lost return on the down payment | $121 | At 8.3% a year, that's what the cash would earn. |
| Buying costs, spread out | $31 | 3.5% of the price over 7 years |
| True cost of owning | $775 | Cash paid out after removing the equity part and adding the two lines above. |
Detroit verdict explained by the numbers
- Typical home valueZillow ZHVI, September 2026
- $74,742
- Typical rentZillow ZORI, September 2026
- $1,328 /mo
- Down payment20% avoids private mortgage insurance, which the engine does not model
- 20%
- Mortgage rateFreddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- Home price growthFHFA house price index, Michigan, 1995 to 2025
- 3.8% a year
- Rent growthCPI rent of primary residence, yearly growth 2006 to 2026
- 3.5% a year
- Return on savings60% S&P 500 with dividends and 40% 10-year Treasuries, rebalanced yearly, 1928 to 2025
- 8.3% a year
- Property taxCensus ACS 2020-2024, Detroit
- 1.67% of value
- Home insuranceCensus ACS 2020-2024, Detroit
- $97 /mo
- MaintenanceFannie Mae, low end of 1% to 4%
- 1% of value a year
- Buying costsFreddie Mac, middle of 2% to 5%
- 3.5% of price
- Selling costsAgent commission plus closing costs
- 6% of price
What would reverse the Detroit result?
Each line shows when the 7-year verdict for Detroit changes. Everything else stays as it is.
Renting is cheaper when
- For a home like this, monthly rent is less than $560 (typical here: $1,328).
- Before year 1, you move.
When buying comes out ahead
- Renting that same home would cost more than $560 a month.
- You stay for 1 year or longer.
Detroit compared with the other 812 cities
| Measure | Detroit | Median city |
|---|---|---|
| Typical home value | $74,742 | $422,451 |
| Typical rent | $1,328 /mo | $1,837 /mo |
| Price-to-rent ratio | 4.7 (#813 of 813) | 18.5 |
| Home prices, last 10 years | 8.3% a year | 6.2% a year |
| Rents, last 5 years | 4.8% a year | 4% a year |
| Property tax | 1.67% | 0.87% |
| Households that rent | 50% | 42% |
Sources: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Other Michigan cities
- In Grand Rapids, MI, renting is ahead by $20k.
- In Warren, MI, buying is ahead by $7k.
- Rent. Sterling Heights, MI. Renting saves $32k.
- Rent. Ann Arbor, MI. Renting saves $124k.
- Toss-up. Lansing, MI. It's close, but buying is ahead by $2k.
- Buy. Dearborn, MI. Buying saves $18k.
- Rent. Livonia, MI. Renting saves $26k.
- Rent. Troy, MI. Renting saves $89k.
- Rent. Farmington Hills, MI. Renting saves $95k.
- Rent. Westland, MI. Renting saves $7k.
- Buy. Flint, MI. Buying saves $39k.
- Rent. In Wyoming, MI, renting wins by $23k.