Homer, 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, Homer, MI offers a 7.1% cap rate with median home prices of $138,307 and 3-bedroom rents of $1,240/month.
Homer offers solid returns for rental investors. With a median home price of $138,307, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,240/month, the 7.1% cap rate tells the story. Cash flow is modest at +$85/month — positive but tight. Rate increases or vacancies could flip it negative.
The 1% rule comes in at 0.90% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.12 is tight — you'll pass most lender minimums but with little margin for error.
Bottom line: Buy here if you want reliable monthly income. Homer is a cash flow market — don't expect rapid appreciation, but the checks come in every month.
Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.
Cap Rate
7.1%
Above average
Monthly Cash Flow
+$85
After all expenses
Price-to-Rent
9.3
Investor-friendly
DSCR
1.12
Tight
Key Metrics
- Median Home Price
- $138,307
- Average Rent (3BR)
- $1,240/mo
- Price-to-Rent Ratio
- 9.3(good)
- 1% Rule
- 0.90%(fails — need 1%+)
- Cash-on-Cash Return
- 3.2%
- 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
23.5%
Affordable
Section 8 Max Rent
$1,240/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)