Burton, MI — Rental Investment Analysis
🟢GOOD— solid returnsData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Burton, MI offers a 6.5% cap rate with median home prices of $182,115 and 3-bedroom rents of $1,430/month.
Burton offers solid returns for rental investors. At $182,115 median home price, Burton is affordable by national standards and within reach for most conventional loans. With 3-bedroom rents around $1,430/month, the 6.5% cap rate tells the story. Cash flow is modest at +$11/month — positive but tight. Rate increases or vacancies could flip it negative.
The 1% rule comes in at 0.83% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.01 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Burton offers a balance of moderate cash flow and growth potential. Good for investors who want some income while building equity over time.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
6.5%
Above average
Monthly Cash Flow
+$11
After all expenses
Price-to-Rent
10.1
Investor-friendly
DSCR
1.01
Tight
Key Metrics
- Median Home Price
- $182,115
- Average Rent (3BR)
- $1,430/mo
- Price-to-Rent Ratio
- 10.1(good)
- 1% Rule
- 0.83%(fails — need 1%+)
- Cash-on-Cash Return
- 0.3%
- Vacancy Rate
- 8.0%
Market Strength
- Unemployment Rate
- 5%(+0.7% vs national)
- Rent Growth (YoY)
- +2.9%(national avg)
- Population Growth
- +0.7% YoY
Property Tax Rate
1.38%
of assessed value (MI avg)
Median Income
$63,202
household (MI avg)
Rent-to-Income
27.2%
Affordable
Section 8 Max Rent
$1,430/mo
3BR voucher payment
MI Investor Climate
Landlord Friendly
6/10
State Income Tax
Has state tax
Property Tax
1.38% effective
Population Trend
+0.7% (3yr)