Burton is home to the best residential real estate investment market in Michigan.
The 48529 zip code in Burton presents the greatest opportunity for the best real estate investments among the 4,632 individual real estate markets in Michigan we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Michigan
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Burton | 100 | 2.1 | 48% |
| 2 | Detroit | 99.8 | 2.0 | 48% |
| 3 | Battle Creek | 95.6 | 2.9 | 55% |
| 4 | Ironwood | 93.4 | 2.1 | 45% |
| 5 | Saginaw | 93.4 | 2.7 | 56% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Michigan.
1. Burton
We've identified the 48529 zip code in Burton as Michigan's best real estate investment market. Here's why.
🔎 Key data about Burton (48529)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $87,273[1] | 26th lowest |
| Five-year appreciation | 48%[2] | 29th highest |
| Household income | $41,333[3] | 450th highest |
| Affordability ratio | 2.1 | 24th most affordable |
| Five-year population growth | 4.2%[4] | 31st highest |
| Unemployment rate | 5.8%[5] | 13th lowest |
| Property taxes | $1,423[6] | 27th lowest |
| Educational attainment | 8.1%[7] | 315th highest |
Burton (zip code 48529) is the best residential real estate investment market in Michigan. It has the 29th highest property value appreciation among markets we evaluated, with a 48% appreciation of the typical property over the last five years.
Burton is the 24th most affordable market among the 4,632 Michigan markets we evaluated, with an affordability ratio of 2.1.
2. Detroit
The 48219 zip code in Detroit is the runner-up spot for the best real estate investments in Michigan.
🔎 Key data about Detroit (48219)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 99.8 | 2nd highest |
| Typical property value | $86,797[1] | 24th lowest |
| Five-year appreciation | 48%[2] | 22nd highest |
| Household income | $43,655[3] | 441st highest |
| Affordability ratio | 2.0 | 21st most affordable |
| Five-year population growth | 3.1%[4] | 50th highest |
| Unemployment rate | 4.7%[5] | 9th lowest |
| Property taxes | $1,736[6] | 65th lowest |
| Educational attainment | 14%[7] | 283rd highest |
The 48219 zip code in Detroit features a typical property value of $86,797, the 24th lowest in the state.
Property values have appreciated 48% over the past five years, the 22nd highest increase among evaluated markets in the state. Detroit homes have an affordability ratio of 2.0, the 21st most affordable in the state.
3. Battle Creek
The 49037 zip code in Battle Creek comes in at No. 3 in our ranking of the best residential real estate investment markets in Michigan.
🔎 Key data about Battle Creek (49037)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 95.6 | 3rd highest |
| Typical property value | $122,327[1] | 37th lowest |
| Five-year appreciation | 55%[2] | 8th highest |
| Household income | $42,690[3] | 446th highest |
| Affordability ratio | 2.9 | 113th most affordable |
| Five-year population growth | 3.1%[4] | 49th highest |
| Unemployment rate | 5.1%[5] | 12th lowest |
| Property taxes | $1,425[6] | 28th lowest |
| Educational attainment | 12%[7] | 292nd highest |
With a typical property value of $122,327, Battle Creek's 49037 zip code features the 37th lowest property values in the state.
Battle Creek homes have an affordability ratio of 2.9, the 113th most affordable among the markets we evaluated.
4. Ironwood
The 49938 zip code in Ironwood ranks No. 4 among Michigan's residential real estate investment markets.
🔎 Key data about Ironwood (49938)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 93.4 | 4th highest |
| Typical property value | $99,228[1] | 29th lowest |
| Five-year appreciation | 45%[2] | 52nd highest |
| Household income | $46,606[3] | 52nd highest |
| Affordability ratio | 2.1 | 25th most affordable |
| Five-year population growth | 0.5%[4] | 218th highest |
| Unemployment rate | 4%[5] | 4th lowest |
| Property taxes | $1,601[6] | 49th lowest |
| Educational attainment | 25%[7] | 192nd highest |
Property values in Ironwood's 49938 zip code have seen the 52nd highest increase among evaluated markets in the state, with an appreciation of 45% over the past five years.
Ironwood's affordability ratio of 2.1 makes it the 25th most affordable among the 4,632 markets we evaluated.
5. Saginaw
The 48638 zip code in Saginaw rounds out our top five residential real estate investment markets in Michigan.
🔎 Key data about Saginaw (48638)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 93.4 | 5th highest |
| Typical property value | $187,627[1] | 121st lowest |
| Five-year appreciation | 56%[2] | 4th highest |
| Household income | $69,459[3] | 4th highest |
| Affordability ratio | 2.7 | 71st most affordable |
| Five-year population growth | 1.6%[4] | 114th highest |
| Unemployment rate | 6%[5] | 14th lowest |
| Property taxes | $2,545[6] | 175th lowest |
| Educational attainment | 34%[7] | 136th highest |
Property values in Saginaw's 48638 zip code rose 56% over the last five years, ranking the city 4th highest among evaluated markets in Michigan.
Saginaw homes have an affordability ratio of 2.7, the 71st most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Michigan.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Michigan
To determine the best real estate investments in Michigan we evaluated 4,632 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Michigan.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
