Written by: Sanjin Hadziomerovic
Introduction
Detroit, MI, known for its rich history, automotive industry, and burgeoning cultural scene, is experiencing a real estate renaissance. The city’s affordability and high gross yields make it an attractive market for short-term rental investments. Let’s explore the top-performing zip codes for investors looking to capitalize on this vibrant city.
48217: Southwest Detroit & River Rouge
- Gross Yield: 42%
- Annual Revenue: $22,601
- Zillow Home Value: $53.5K
Zip code 48217, located in Southwest Detroit near River Rouge, offers the highest gross yield on this list at a staggering 42%. With an annual revenue of $22,601 and Zillow home values averaging just $53.5K, this area presents a significant opportunity for investors looking for high returns on a relatively low property investment. The neighborhood is close to major industrial hubs, making it appealing for business travelers. Additionally, its proximity to the Detroit River provides unique outdoor experiences for guests.
48211: Eastern Market & Hamtramck Border
- Gross Yield: 34%
- Annual Revenue: $21,383
- Zillow Home Value: $62.5K
Zip code 48211 encompasses parts of the Eastern Market district and borders Hamtramck. Known for its vibrant market scene, art installations, and historic warehouses, this area attracts tourists and visitors year-round. The gross yield is an impressive 34%, with an annual revenue of $21,383 and Zillow home values averaging $62.5K. The unique cultural offerings, combined with the area’s ongoing revitalization, make it a prime location for short-term rentals.
48205: Northeast Detroit
- Gross Yield: 31%
- Annual Revenue: $16,631
- Zillow Home Value: $54.1K
Zip code 48205 is located in Northeast Detroit, an area known for its affordability and community-driven redevelopment projects. The gross yield here is 31%, with annual revenue of $16,631 and Zillow home values at $54.1K. While the area is still experiencing challenges, it offers investors a chance to get in early on an affordable market that is gradually improving. With nearby parks and community centers, there is potential to attract guests seeking a more authentic Detroit experience.
