What's a good cap rate in Ann Arbor?

In Ann Arbor, cap rates typically run around 8.5% (Michigan state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Ann Arbor deal lands versus this benchmark.

What's the average rent for a rental in Ann Arbor?

A typical rental in Ann Arbor runs about $1,700–$2,300/mo (estimate; varies by neighborhood, size, and condition). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Michigan?

Michigan's effective property tax rate is about 1.38% of value per year — the figure TrueCap applies by default for Ann Arbor deals. You can override it with the exact local rate.

Ann Arbor, MI

Ann Arbor rental property analysis

Ann Arbor is anchored by the University of Michigan — a recession-resistant, high-demand, high-quality rental market.

Ann Arbor market snapshot

Cash-flow market

Higher typical cap rates — built for monthly cash flow more than price growth.

Typical cap rate

8.5%

Michigan state median

Typical rent

$1,700–$2,300/mo

est., SFR / small multi

Typical price

$380,000–$500,000

est., all-in

Property tax

1.38%

Michigan effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Ann Arbor a good place to buy rentals?

Exceptional demand and low vacancy from UM, but prices are high — appreciation-leaning. Student submarkets are turnover-heavy.

See the full Michiganinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Ann Arbor

Near UM Central

Student demand, premium pricing.

Pittsfield Township

Family renters, low vacancy.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Ann Arbor deal in 60 seconds

Paste a Ann Arbor address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Michigan tax and HUD rent so you start from the right assumptions.

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