Pontiac, MI — Rental Investment Analysis
🟢STRONG— excellent cash flow marketData: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.
Investment Summary
As of 2026, Pontiac, MI has a median cap rate of 8.1%, making it one of the top cash-flowing rental markets in the United States.
Pontiac is one of the strongest cash flow markets in the data. With a median home price of $141,215, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,400/month, the 8.1% cap rate tells the story. Expect around +$205/month cash flow after mortgage, taxes, insurance, and reserves.
The market passes the 1% rule (1.00%), which is increasingly rare and signals strong rent-to-price fundamentals. DSCR of 1.27 means the property's income comfortably covers debt service — DSCR loans should be easy to qualify for here.
Bottom line: Buy here if you want reliable monthly income. Pontiac 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
8.1%
Above average
Monthly Cash Flow
+$205
After all expenses
Price-to-Rent
8.3
Investor-friendly
DSCR
1.27
Passes lender test
Key Metrics
- Median Home Price
- $141,215
- Average Rent (3BR)
- $1,400/mo
- Price-to-Rent Ratio
- 8.3(good)
- 1% Rule
- 1.00%(passes)
- Cash-on-Cash Return
- 7.6%
- 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
26.6%
Affordable
Section 8 Max Rent
$1,400/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)