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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

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Property Details

Operating Expenses(Michigan defaults)

Total Annual Expenses$10,141

Michigan Market Context

Avg Cap Rate

7%

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 PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Cap Rate

2.7%

Low
Net Operating Income$6,659
Gross Income$16,800
Total Expenses$10,141
Michigan Avg Cap Rate7%
CAP RATE2.7%
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.

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NOI

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

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Gross Rent Multiplier

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

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