%
CapRateCity
Free cap rate calculators for every US market
← All comparisons

Grand Rapids vs Ann Arbor for Rental Property Investing

Side-by-side comparison of Grand Rapids, MI and Ann Arbor, MI — cap rates, rent, prices, and investment metrics.

Grand Rapids wins 6–1 across key metrics
Grand Rapids leads on cash flow (3.63% vs 2.61% cap rate)
Metric
Grand Rapids, MI
Ann Arbor, MI
Est. Cap Rate
3.63%
2.61%
Median Home Price
$270,000
$395,000
Median Monthly Rent
$1,380
$1,680
1% Rule
0.51%
0.43%
GRM
16.3x
19.6x
Price / Income
5.2x
5.8x
Property Tax Rate
1.38%
1.48%
Vacancy Rate
5.2%
4.2%
Population Growth
1.1% / yr
0.8% / yr
Annual Appreciation
3.2%
3%
Population
201,013
125,710
Median Income
$52,400
$68,200

Grand Rapids vs Ann Arbor: Which Is Better for Investors?

Cash flow: Grand Rapids has the edge with an estimated cap rate of 3.63% compared to Ann Arbor's 2.61%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $270,000 in Grand Rapids vs $395,000 in Ann Arbor, while rents come in at $1,380/mo and $1,680/mo respectively.

Growth & appreciation: Grand Rapids is growing faster at 1.1% annually vs Ann Arbor's 0.8%. Grand Rapids leads on home value appreciation at 3.2% per year.

Costs & risk: Property taxes are 1.38% in Grand Rapids vs 1.48% in Ann Arbor. Vacancy rates of 5.2% and 4.2% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Grand Rapids edges out Ann Arbor on most key metrics. While cap rates are moderate at 3.63%, Grand Rapids's overall profile is stronger. Use our free calculators to model specific deals in Grand Rapids or Ann Arbor.

Grand Rapids, MI
3.63% cap rate · $270,000 median · $1,380/mo
Full analysis →
Ann Arbor, MI
2.61% cap rate · $395,000 median · $1,680/mo
Full analysis →
The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.