Michigan Cap Rate Calculator

Calculate cap rates using Michigan market data. Property tax, insurance, vacancy rates, and other defaults are pre-filled with current Michigan averages. Net Operating Income ÷ Property Price

Market

Browse calculators by state

Property Details

Property Price

Annual Gross Rental Income

Operating Expenses(Michigan defaults)

Total Annual Expenses$10,141

Property Tax(1.13% avg in MI)

Insurance($2,351 avg in MI)

Maintenance & Repairs

Management Fee(8% of rent)

Vacancy Rate($1,142/yr)

Michigan Market Context

Avg Cap Rate

Median Price

$249K

Property Tax

1.13%

Vacancy Rate

6.8%

Local Factors

-Detroit and Grand Rapids are popular cash-flow markets for out-of-state investors
-Proposal A caps assessment increases at inflation rate for existing owners
-Wide variation between metro markets; rural areas face population decline

Sources

World Population Review – Median Home Price FL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance Rates iPropertyManagement – Vacancy Rates

Cap Rate

2.7%

Low

Net Operating Income$6,659

Gross Income$16,800

Total Expenses$10,141

Michigan Avg Cap Rate7%

NOI$6,659

Property Tax$2,814

Insurance$2,351

Maintenance$2,490

Management$1,344

Vacancy$1,142

What does this mean?

A cap rate below 4% is typical for premium locations with lower risk but limited cash flow. Common in Class A properties in major metros.

Keep running the numbers

One calculator rarely tells the whole story.

Cap rate tells you the return without financing. Now see what happens when you add a mortgage with Michigan rates.

Cash on Cash Return

Measure the annual return on your actual cash invested, factoring in financing, expenses, and rental income.

Calculate

NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

Calculate

Gross Rent Multiplier

Quickly screen and compare rental properties by how many years of gross income cover the purchase price.

Calculate