Marquette, MI Cap Rate 4.92%
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
Market Data
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.
Deal Modeling & Scenarios for Marquette
All figures below are computed from Marquette's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 1.46% effective rate on the $235,000 median price, the annual tax bill is $3,431 — that's above national average (+38% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Marquette continues appreciating at 2.4%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $235K | $1,500 | 4.9% |
| Year 1 | $241K | $1,545 | 5.0% |
| Year 2 | $246K | $1,591 | 5.0% |
| Year 3 | $252K | $1,639 | 5.0% |
| Year 4 | $258K | $1,688 | 5.0% |
| Year 5 | $265K | $1,739 | 5.1% |
Three Financing Scenarios
Same median-priced Marquette property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $235K | $964 | $11,573 | 4.9% |
| 20% down conventional @ 7% | $54K | $-286 | $-3,429 | -6.3% |
| 25% down DSCR @ 8.5% | $68K | $-391 | $-4,691 | -6.9% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $176K | $1,275 | $8,625 | 4.9% | $719 |
| At median | $235K | $1,500 | $9,633 | 4.1% | $803 |
| Above median (~125% price) | $294K | $1,725 | $10,641 | 3.6% | $887 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Marquette's historical appreciation rate of 2.4%:
On a $47K down payment, that's a 56.5% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Marquette
Automated checks against the underlying data — surface only the risks that actually apply to Marquette, not generic boilerplate:
Cap Rate Calculator — Marquette
Pre-filled with Marquette medians. Adjust to match a specific property.
Cash-on-Cash Return — Marquette
Factor in financing to see your actual return on invested capital in Marquette.
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.