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MarketsMichiganMonroeRent Analysis

Rent Analysis: Monroe, MI

Updated 2026 · Based on median market data for Monroe, MI

Cap Rate
2.98%
Median Price
$260K
Rent/Mo
$1,210
1% Rule
0.47%
Fails

Rent Overview

The median monthly rent in Monroe, MI is $1,210, translating to $14,520 in annual gross rental income per unit. The rent-to-price ratio is 0.47% — well below the 1% rule, making pure cash flow investing challenging at median prices.

Rent Affordability

Renters in Monroe spend approximately 31% 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.

Vacancy & Tenant Demand

The vacancy rate in Monroe 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.

Gross Rent Multiplier

Monroe's GRM (price divided by annual rent) is 17.9x. A GRM above 16x means the property is expensive relative to its income. Investors here are typically betting on appreciation rather than current cash flow. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.

Rental Income Projection

At the median rent of $1,210/mo, a single-family rental in Monroe generates approximately $14,520 in gross annual income. After accounting for 6.2% vacancy ($900 lost), property taxes of $3,796, insurance (~$1,040), and maintenance (~$1,040), the estimated NOI is $7,744 per year, or $645/mo.

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How Monroe Compares

Monroe vs Michigan state average and national average across key investment metrics. Monroe's cap rate is below both benchmarks — deal sourcing is critical here.

Metric
Monroe
Michigan Avg
National Avg
Cap Rate
2.98%
3.87%
3.81%
Median Price
$260K
$254K
$333K
Median Rent
$1,210
$1,355
$1,524
Property Tax
1.46%
1.46%
1.08%
Vacancy
6.2%
6.2%
5.6%
Pop. Growth
0.3%/yr
0.3%/yr
0.9%/yr

Nearby Midwest Markets

City
Cap Rate
Price
Rent
Tax
Monroe, MI
3.0%
$260K
$1,210
1.46%
Detroit, MI
3.9%
$260K
$1,460
1.54%
Ames, IA
2.3%
$260K
$1,050
1.5%
Warren, MI
4.1%
$260K
$1,460
1.44%
Sterling Heights, MI
4.2%
$260K
$1,460
1.4%

Frequently Asked Questions

What is the average rent in Monroe, MI?
The median monthly rent in Monroe is $1,210, or $14,520 per year. This is 21% below the national average of $1,524/mo. Rent levels vary by neighborhood, property condition, and unit size — always verify comparable rents for your target property.
Is Monroe a good rental market for landlords?
With a rent-to-price ratio of 0.47%, Monroe falls below the 1% rule, meaning cash flow depends on buying below median or achieving above-median rents. The 6.2% vacancy rate is moderate.
How does Monroe rent compare to Michigan averages?
Monroe's median rent of $1,210/mo is 11% below the Michigan average of $1,355/mo. Home prices at $260K are above the state average of $254K, giving Monroe a rent-to-price ratio of 0.47% vs 0.53% statewide.
What is a good rent-to-price ratio?
The 1% rule says monthly rent should be at least 1% of purchase price ($1,000/mo rent on a $100,000 home). Monroe's ratio is 0.47%. Generally, above 0.8% is workable with good financing, above 1% is strong, and above 1.2% is exceptional. The national average across the 300+ cities we track is 0.46%.
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Explore Monroe & Related Markets

More Monroe Guides

Rental Property Investment GuideProperty Tax GuideCost of Living & AffordabilityAppreciation & Growth ForecastNeighborhood Investment Guide

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