Michigan · main city

Buying a home in Detroit, Michigan

In Detroit, the median value of owner-occupied homes is $102,600, Wayne County's effective property tax rate is 1.63%, a purchase mortgage carried a median $4,868 in total loan costs in 2025, and median gross rent is $1,074 a month.

Data as of : Census ACS 2025 1-year, Census Vintage 2024, FHFA HPI 2026Q2, Census ACS 2020-2024, HMDA 2025, HUD FY 2027. Sources

Checked on against the official sources listed at the bottom of the page.

Detroit home costs, fact by fact

  • Detroit is the first-named city of the Detroit-Warren-Dearborn, MI metropolitan area. (Census Vintage 2024)
  • That metro area is the 14th largest in the United States, with 4,400,578 residents. (Census Vintage 2024)
  • Detroit itself counts 645,705 residents. (Census Vintage 2024)
  • The median value of owner-occupied homes in Detroit is $102,600. (Census ACS 2025 1-year)
  • That figure is what owners estimate their home is worth, not a sale price. (Census ACS 2025 1-year)
  • The FHFA House Price Index shows Michigan prices up 3.8% and Detroit–Dearborn–Livonia prices up 4.9% between the second quarters of 2025 and 2026. (FHFA HPI 2026Q2)
  • Owners occupy 50.3% of the occupied homes in Detroit. (Census ACS 2020-2024)
  • Median gross rent in Detroit is $1,074 a month. (Census ACS 2020-2024)
  • Homeowners in Wayne County pay a median $2,904 a year in property tax. (Census ACS 2020-2024; Michigan property tax by county)
  • That is 1.63% of the median home value in Wayne County, its effective property tax rate. (Census ACS 2020-2024)
  • Home-purchase mortgages in Wayne County carried median total loan costs of $4,868 in 2025, across 12,494 loans. (HMDA 2025; Wayne County loan costs)
  • Half of those loans fell between $3,743 and $7,224. (HMDA 2025)
  • HUD's Fair Market Rent for a 2-bedroom home is $1,459 a month in its rent area, Detroit-Warren-Livonia, MI HUD Metro FMR Area. (HUD FY 2027)
  • Michigan has a state transfer tax of $3.75 per $500 of value and a county transfer tax of $0.55 per $500 in counties under 2,000,000 people; Wayne County lists the combined rate as $8.60 per $1,000. (official sources; Michigan transfer tax)

Calculate for Detroit

If you buy

Michigan transfer taxes

State real estate transfer tax (MCL 207.522 to 207.526): $3.75 per $500 of value or fraction of $500. Change the price: the amount is recalculated instantly.

Price$102,600
State transfer tax ($3.75 per $500)$772.50
County transfer tax, Wayne County$113.30
Total transfer tax$885.80
Share of the price0.86% of the price
Who paysThe seller

Default price: the Detroit median value of owner-occupied homes, $102,600 (Census ACS 2025). Rule: Divide the value by $500, round up to the next whole unit, multiply by $3.75. Value is fair market value of the real property only, if personal property is stated separately. This is the state share only; the county tax is added separately. The county transfer tax is imposed by law in every county, at 55 cents per $500 in a county under 2,000,000 people (MCL 207.502 and 207.504); a county of 2,000,000 or more may set up to 75 cents, and Wayne County, the most populous, charges 55 cents (Register of Deeds). Wayne County Register of Deeds: county tax $0.55 per $500 and state tax $3.75 per $500, or $8.60 per $1,000 combined (fee schedule effective January 1, 2026). Source: MCL 207.502 and 207.504 (legislature.mi.gov) and the Wayne County Register of Deeds Document Recording page, read October 15, 2026. Who pays: Both the state and county acts make the seller or grantor liable; a buyer may pay on the seller's behalf by agreement. Not included: other local transfer taxes, recording fees, title insurance and lender charges. Michigan transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Michigan state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

In short

The median value of owner-occupied homes in the city of Detroit is $95,900, according to the Census Bureau’s 2024 American Community Survey, against $254,200 for Michigan. The City of Detroit’s Down Payment Assistance Program offers up to $25,000 to buyers with household income below 80% of area median income, according to the city’s Phase III guidelines.

How much homes cost in Detroit

The Census Bureau’s American Community Survey (ACS) asks owners how much they think their home would sell for. The median of those answers is a useful benchmark, but it is not a sale price: it covers every owner-occupied home, including homes bought long ago. Our page on Michigan home prices explains the method in detail.

AreaMedian value, 2024 (ACS)Margin of error (90%)
City of Detroit$95,900±$7,548
Wayne County$194,800±$3,464
Detroit–Warren–Dearborn metro area$271,600±$2,503
Michigan$254,200±$1,616
United States$360,600±$618

Source: U.S. Census Bureau, ACS 1-Year Estimates 2024, table B25077. The 2025 estimates are scheduled for October 29, 2026.

The city median is well below the county, metro and state figures. Values vary widely inside the city, so a median describes the typical owner’s estimate, not any given street.

Are Detroit prices rising?

The Federal Housing Finance Agency (FHFA) tracks repeat sales of the same single-family homes. Its purchase-only, seasonally adjusted index for the Detroit–Dearborn–Livonia metro division, published August 25, 2026, shows:

Area1-year change (Q2 2025 to Q2 2026)5-year change (Q2 2021 to Q2 2026)
Detroit–Dearborn–Livonia metro division+4.9%+39.7%
Michigan+3.8%+38.8%
United States+2.1%+33.4%

Source: FHFA House Price Index, quarterly purchase-only files. Changes calculated by Payotte from the published index values.

Prices in the Detroit area rose faster than in the state and the nation over both periods.

Costs of buying

On top of the price, buyers and sellers pay closing costs. For the rules, who pays each item and a worked example, see our guides to closing costs in Michigan and transfer tax in Michigan. Property taxes are covered in our Michigan property tax guide.

Help for Detroit buyers

The City of Detroit runs a Down Payment Assistance Program funded with about $9 million in federal community development money. Key points from the city’s Phase III guidelines, read October 13, 2026:

  • Amount: up to $25,000 for down payment, prepaids and closing costs, never more than 50% of the purchase price.
  • Income: below 80% of area median income, for example $83,850 for a household of four.
  • Residency: you have lived in Detroit for the past 12 months, and you have not owned a home for three years.
  • Occupancy: the home must be your primary residence for 3 years, or the grant is repaid on a prorated basis.
  • Funds: first-come, first-served. A decision typically takes 2 to 3 weeks after a complete application.

The full table of income limits, the steps and a worked example are in our guide to first-time buyer programs in Michigan.

Buying on a land contract

Some Detroit buyers who cannot get a mortgage buy on a land contract: the seller keeps the deed until you have paid in full. The City of Detroit warns that there is usually no bank, title company or agent involved, and that you can lose the home to forfeiture if you miss payments, or to tax foreclosure if property taxes go unpaid for three years. It recommends speaking with a housing counselor before signing, and it lists the Wayne County Register of Deeds (313-224-5850, 400 Monroe St., 9th floor) as the office to record the contract. Our guide to real estate attorneys in Michigan covers when legal help matters.

Michigan guides for Detroit buyers

Frequently asked questions

What is the median home price in Detroit?

The Census Bureau’s 2024 American Community Survey puts the median value of owner-occupied homes in the city of Detroit at $95,900 (±$7,548). This is what owners think their home is worth, not the median sale price of recent sales.

Are home prices in Detroit going up?

According to the FHFA purchase-only index, prices in the Detroit–Dearborn–Livonia metro division rose 4.9% between the second quarter of 2025 and the second quarter of 2026. Over five years, they rose 39.7%.

Is there down payment help in Detroit?

Yes. The City of Detroit’s Down Payment Assistance Program offers up to $25,000 to eligible households under 80% of area median income. Funds are first-come, first-served, so check availability with the city at (313) 224-6380.

How does Detroit compare with the rest of Michigan?

The city median ($95,900) is $158,300 below the Michigan median ($254,200) and $98,900 below Wayne County ($194,800). The Detroit metro area as a whole is at $271,600.

What should I know before buying on a land contract in Detroit?

The seller keeps the deed until you finish paying, so you carry ownership costs without owning title. The city warns about forfeiture and tax foreclosure risk and recommends speaking with a housing counselor first.

More Michigan guides

Sources

Questions about buying a home in Detroit

How much is property tax in Detroit?

Homeowners in Wayne County pay a median $2,904 a year in property tax, 1.63% of the county median home value of $178,500 (Census ACS 2020-2024). Your bill depends on your assessed value and local rates.

What are closing costs on a mortgage in Detroit?

Home-purchase mortgages in Wayne County carried median total loan costs of $4,868 in 2025; half of the 12,494 loans fell between $3,743 and $7,224 (HMDA). Total loan costs are the lender and settlement-service charges of the Closing Disclosure; transfer taxes and prepaid items come on top.

Is there a transfer tax when you buy a home in Detroit?

Michigan has a state transfer tax of $3.75 per $500 of value and a county transfer tax of $0.55 per $500 in counties under 2,000,000 people; Wayne County lists the combined rate as $8.60 per $1,000. By law the seller owes both.

Is it cheaper to rent or buy in Detroit?

It depends on your mortgage rate, down payment and how long you stay. As a benchmark, the median value of owner-occupied homes in Detroit ($83,900) equals 6.5 years of the median gross rent ($1,074 a month), both from Census ACS 2020-2024.

Run your own numbers: rent vs buy calculator · closing costs calculator.

Professionals by sector of Detroit

Who licenses each trade in Michigan

Other large cities: see cities in Michigan.

Data sources for the figures above

Michigan · All states · Federal guides