Detroit — Foxtail Realty market
FOXTAIL REALTY

Market 04 · Michigan

Detroit, MI

More rent-assistance programs behind a tenancy than any other market on this list, and pricing that changes street by street.

A closer look

Wayne County

The facts

Detroit, in brief

Counties

Wayne County

Housing authorities

DHC — Detroit Housing CommissionMSHDA is the state authority behind the other programs below.

Vouchers

Housing Choice Vouchers run by DHC inside the city, and by MSHDA — the largest statewide authority in the country — across most of Michigan.

Other programs

MSHDA project-based vouchers for permanent supportive housing, HUD-VASH for veterans, and the Family Unification Program.Local agencies place tenants under them — NSO is the one most investors meet first.

Inspection

Voucher inspection before the first payment, annually after.Detroit also requires rental registration and a certificate of compliance, with lead clearance on pre-1978 stock.

Turnkey 3-bed

$80k–$100k

Typical purchase price for a three-bed house that suits a voucher tenancy

Rent, 3-bed

$1,200–$1,500

What those houses rent for once approved

What works, what to watch

+

What works

01

Entry prices around $80k–$100k against rents of $1,200–$1,500 — among the widest rent-to-price spreads we underwrite.

02

Demand is not tied to one waitlist. DHC runs tenant-based vouchers in the city, MSHDA runs its own programs statewide, and several other funded programs place tenants alongside them.

03

Project-based assistance attaches to the unit rather than the tenant, so an approved house keeps its payment when a household moves on.

04

Supportive-housing placements come with case management behind them, and those tenancies tend to run longer than market rentals.

05

Pricing changes block to block, which means spread still exists for a buyer with someone local reading the street.

!

What to watch

01

Detroit requires rental registration and a certificate of compliance, plus lead clearance on pre-1978 stock. Worth confirming where a house stands before closing.

02

Back taxes and unpaid water bills attach to the property, so the tax and water position is the first thing to check on any address.

03

Programs are not interchangeable. Project-based vouchers go through an owner proposal and unit approval, and supportive-housing tenants come through coordinated entry — both take longer to place than a standard rental.

04

A house bought vacant needs securing from day one — copper, furnaces and water heaters are the first things to go.

05

Insurance runs higher here than in the other markets on this list, and carriers price by street. Get a quote while you are still underwriting.

Figures are indicative ranges for the stock investors buy here, not an appraisal or a valuation. Payment standards, program rules and inspection practice change — confirm with the relevant housing authority for a specific address.

Looking at a deal in Detroit?

Send the address and we will come back with the numbers before you talk to anyone. Or ask for an introduction to the realtor who covers it.

Submit Deal for Review Request Realtor Introduction