Iron Mountain is home to the best residential real estate investment market in Michigan.
The 49801 zip code in Iron Mountain 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Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.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 | Iron Mountain | 100 | 2.9 | 37.70% |
| 2 | Ironwood | 99.6 | 2.4 | 34.09% |
| 3 | Battle Creek | 98.8 | 3.1 | 37.27% |
| 4 | Saginaw | 97.7 | 2.9 | 44.70% |
| 5 | Auburn | 95.6 | 2.7 | 37.69% |
🚨 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. Iron Mountain
We've identified the 49801 zip code in Iron Mountain as Michigan's best real estate investment market. Here's why.
🔎 Key data about Iron Mountain (49801)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $195,922[1] | 106th lowest |
| Five-year appreciation | 37.70%[2] | 16th highest |
| Household income | $67,337[3] | 288th highest |
| Affordability ratio | 2.9 | 79th most affordable |
| Five-year population growth | 2.19%[4] | 85th highest |
| Unemployment rate | 4.55%[5] | 4th lowest |
| Property taxes | $2,214[6] | 135th lowest |
| Educational attainment | 24.90%[7] | 196th highest |
Iron Mountain (zip code 49801) is the best residential real estate investment market in Michigan. It has the 16th highest property value appreciation among markets we evaluated, with a 37.70% appreciation of the typical property over the last five years.
Iron Mountain is the 79th most affordable market among the 4,632 Michigan markets we evaluated, with an affordability ratio of 2.9.
2. Ironwood
The 49938 zip code in Ironwood is the runner-up spot for the best real estate investments in Michigan.
🔎 Key data about Ironwood (49938)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 99.6 | 2nd highest |
| Typical property value | $112,673[1] | 31st lowest |
| Five-year appreciation | 34.09%[2] | 33rd highest |
| Household income | $46,606[3] | 434th highest |
| Affordability ratio | 2.4 | 33rd most affordable |
| Five-year population growth | 0.48%[4] | 221st highest |
| Unemployment rate | 4.55%[5] | 4th lowest |
| Property taxes | $1,601[6] | 49th lowest |
| Educational attainment | 25.40%[7] | 194th highest |
The 49938 zip code in Ironwood features a typical property value of $112,673, the 31st lowest in the state.
Property values have appreciated 34.09% over the past five years, the 33rd highest increase among evaluated markets in the state. Ironwood homes have an affordability ratio of 2.4, the 33rd 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 | 98.8 | 3rd highest |
| Typical property value | $133,369[1] | 39th lowest |
| Five-year appreciation | 37.27%[2] | 18th highest |
| Household income | $42,690[3] | 449th highest |
| Affordability ratio | 3.1 | 138th most affordable |
| Five-year population growth | 3.14%[4] | 50th highest |
| Unemployment rate | 5.30%[5] | 8th lowest |
| Property taxes | $1,425[6] | 28th lowest |
| Educational attainment | 12.30%[7] | 294th highest |
With a typical property value of $133,369, Battle Creek's 49037 zip code features the 39th lowest property values in the state.
Battle Creek homes have an affordability ratio of 3.1, the 138th most affordable among the markets we evaluated.
4. Saginaw
The 48638 zip code in Saginaw ranks No. 4 among Michigan's residential real estate investment markets.
🔎 Key data about Saginaw (48638)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 97.7 | 4th highest |
| Typical property value | $202,733[1] | 125th lowest |
| Five-year appreciation | 44.70%[2] | 7th highest |
| Household income | $69,459[3] | 7th highest |
| Affordability ratio | 2.9 | 82nd most affordable |
| Five-year population growth | 1.63%[4] | 115th highest |
| Unemployment rate | 5.80%[5] | 11th lowest |
| Property taxes | $2,545[6] | 176th lowest |
| Educational attainment | 34.40%[7] | 137th highest |
Property values in Saginaw's 48638 zip code have seen the 7th highest increase among evaluated markets in the state, with an appreciation of 44.70% over the past five years.
Saginaw's affordability ratio of 2.9 makes it the 82nd most affordable among the 4,632 markets we evaluated.
5. Auburn
The 48611 zip code in Auburn rounds out our top five residential real estate investment markets in Michigan.
🔎 Key data about Auburn (48611)
| Data point | Value | Rank in state (of 4,632 markets) |
|---|---|---|
| InvestScore | 95.6 | 5th highest |
| Typical property value | $236,559[1] | 190th lowest |
| Five-year appreciation | 37.69%[2] | 17th highest |
| Household income | $87,963[3] | 17th highest |
| Affordability ratio | 2.7 | 48th most affordable |
| Five-year population growth | 1.33%[4] | 142nd highest |
| Unemployment rate | 5.40%[5] | 9th lowest |
| Property taxes | $2,900[6] | 238th lowest |
| Educational attainment | 34.90%[7] | 132nd highest |
Property values in Auburn's 48611 zip code rose 37.69% over the last five years, ranking the city 17th highest among evaluated markets in Michigan.
Auburn homes have an affordability ratio of 2.7, the 48th 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.
