Saginaw, 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, Saginaw, MI has a median cap rate of 8.0%, making it one of the top cash-flowing rental markets in the United States.
Saginaw is one of the strongest cash flow markets in the data. With a median home price of $139,243, entry costs are low — making it accessible for beginning investors or those buying multiple properties. With 3-bedroom rents around $1,280/month, the 8.0% cap rate tells the story. Expect around +$193/month cash flow after mortgage, taxes, insurance, and reserves.
The 1% rule comes in at 0.99% — doesn't quite pass, but close enough to find individual deals that work. DSCR of 1.26 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. Saginaw 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
8.0%
Above average
Monthly Cash Flow
+$193
After all expenses
Price-to-Rent
8.4
Investor-friendly
DSCR
1.26
Passes lender test
Key Metrics
- Median Home Price
- $139,243
- Average Rent (3BR)
- $1,280/mo
- Price-to-Rent Ratio
- 8.4(good)
- 1% Rule
- 0.99%(fails — need 1%+)
- Cash-on-Cash Return
- 7.2%
- 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
24.3%
Affordable
Section 8 Max Rent
$1,280/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)
Best Zip Codes in Saginaw for Investors
All Zip Codes in Saginaw
| Zip | Cap Rate | Cash Flow | Home Price | Rent (3BR) | DSCR |
|---|---|---|---|---|---|
| 48607 | 31.8% | +$858 | $40,548 | $1,380/mo | 4.98 |
| 48601 | 18.4% | +$612 | $61,279 | $1,250/mo | 2.88 |
| 48602 | 12.7% | +$433 | $81,789 | $1,200/mo | 1.99 |
| 48604 | 8.1% | +$193 | $139,243 | $1,380/mo | 1.26 |
| 48604 | 8.1% | +$193 | $139,243 | $1,380/mo | 1.26 |
| 48638 | 4.7% | -$288 | $198,449 | $1,280/mo | 0.73 |
| 48603 | 4.5% | -$362 | $226,542 | $1,420/mo | 0.70 |
| 48609 | 3.9% | -$458 | $216,468 | $1,220/mo | 0.60 |
| 48747 | 3.8% | -$451 | $212,966 | $1,200/mo | 0.60 |