Updated 2026 · Based on median market data for Bay City, MI
The median monthly rent in Bay City, MI is $1,280, translating to $15,360 in annual gross rental income per unit. The rent-to-price ratio is 0.73% — below the 1% rule but within a range where deals can work with good financing.
Renters in Bay City spend approximately 33% of the local median household income ($46,975) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Bay City is 6.2%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.3% annually provides stable demand.
Bay City's GRM (price divided by annual rent) is 11.4x. A GRM under 12x is excellent — it means you're paying less than 12 years of gross rent for the property, suggesting strong income relative to price. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,280/mo, a single-family rental in Bay City generates approximately $15,360 in gross annual income. After accounting for 6.2% vacancy ($952 lost), property taxes of $2,555, insurance (~$700), and maintenance (~$700), the estimated NOI is $10,453 per year, or $871/mo.
Bay City vs Michigan state average and national average across key investment metrics. Bay City outperforms both benchmarks on cap rate.