Average capitalization rate in Michigan, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in Michigan

MedianMeanMode
10.4%
From 2,562,686 homes
11.1%
From 2,562,686 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in Michigan

LocationMedianMeanMode
Acme
8.1%
From 2,565 homes
7.5%
From 2,565 homes
-
Ada
6.1%
From 458 homes
5.7%
From 458 homes
-
Addison
9.2%
From 266 homes
8.7%
From 266 homes
-
Adrian
11.1%
From 9,665 homes
11.0%
From 9,665 homes
-
Advance
6.3%
From 294 homes
6.3%
From 294 homes
-
Ahmeek
13.3%
From 1 home
13.3%
From 1 home
-
Akron
12.1%
From 826 homes
12.1%
From 826 homes
-
Alabaster
8.0%
From 3 homes
8.0%
From 3 homes
-
Alaiedon
9.6%
From 996 homes
9.4%
From 996 homes
-
Alamo
9.7%
From 1,352 homes
9.7%
From 1,352 homes
-

All cities in Michigan