Marquette, MI Cap Rate: 4.92% — Rental Property Analysis
Marquette is a budget-friendly market in the Midwest with a small but investable metro of 50,000. At a 4.92% estimated cap rate, this is a moderate market where rents of $1,500/mo lag behind home prices. With a median home price of $235,000 and population is roughly stable, Marquette offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $235,000 median price and $1,500/mo median rent
Est. Cap Rate
4.92%
1% Rule
0.64%
Fails
GRM
13.1x
Price / Income
5.0x
Market Data
Median Home Price$235,000
Median Monthly Rent$1,500
Property Tax Rate1.46%
Population50,000
Population Growth0.3% / yr
Median Household Income$46,975
Vacancy Rate6.2%
Annual Appreciation2.4%
2026 Market Update: Marquette
Marquette's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $235,000, the $1,500/mo rent produces only $964/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($47K at 7%) would result in approximately $-286/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 19% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Marquette a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Cap Rate Calculator — Marquette
Pre-filled with Marquette medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
1.46% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.95%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$9,276
net operating income
Gross Rent Multiplier
13.1x
Good (<15)
1% Rule
0.64%
✗ Fails
Monthly Cash Flow
$773
before debt service
Annual Breakdown
Gross Rental Income$18,000
Less Vacancy−$1,116
Effective Income$16,884
Less Operating Expenses−$7,608
Net Operating Income$9,276
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Factor in financing to see your actual return on invested capital in Marquette.
$
$58,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.09%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$65,800
$58,750 down + $7,050 closing
Monthly Mortgage
$1,149
on $176K loan
Monthly Cash Flow
$-279
after all expenses
Annual Cash Flow
$-3,348
before taxes
Cash Flow Breakdown
Monthly Rent$1,500
Less Expenses−$630
Less Mortgage−$1,149
Monthly Cash Flow$-279
Is Marquette a Good Place to Invest in Rental Property?
Marquette, MI has a population of 50,000 and has been growing at 0.3% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $235,000 paired with median rents of $1,500/mo produces an estimated cap rate of 4.92%.
Property taxes at 1.46% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.2% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.0x, homes cost about 5.0 times the local median income of $46,975. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.4% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Marquette presents moderate opportunities. Cap rates near 4.92% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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