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

Cap Rate Analysis: Sterling Heights, MI

Investment metrics, interactive calculators, and data-driven analysis for Sterling Heights rental properties.

Challenging for pure cash flow
Based on $235,000 median price and $1,280/mo median rent
Est. Cap Rate
3.98%
1% Rule
0.54%
Fails
GRM
15.3x
Price / Income
4.0x

Market Data

Median Home Price$235,000
Median Monthly Rent$1,280
Property Tax Rate1.4%
Population134,000
Population Growth0.2% / yr
Median Household Income$58,200
Vacancy Rate5.5%
Annual Appreciation2.4%

Cap Rate Calculator — Sterling Heights

Pre-filled with Sterling Heights medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.4% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.20%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$7,531
net operating income
Gross Rent Multiplier
15.3x
High (>15)
1% Rule
0.54%
✗ Fails
Monthly Cash Flow
$628
before debt service
Annual Breakdown
Gross Rental Income$15,360
Less Vacancy−$845
Effective Income$14,515
Less Operating Expenses−$6,984
Net Operating Income$7,531

Cash-on-Cash Return — Sterling Heights

Factor in financing to see your actual return on invested capital in Sterling Heights.

$
$58,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-7.42%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
$-407
after all expenses
Annual Cash Flow
$-4,884
before taxes
Cash Flow Breakdown
Monthly Rent$1,280
Less Expenses−$538
Less Mortgage−$1,149
Monthly Cash Flow$-407

Is Sterling Heights a Good Place to Invest in Rental Property?

Sterling Heights, MI has a population of 134,000 and has been growing at 0.2% 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 $1,280/mo produces an estimated cap rate of 3.98%.

Property taxes at 1.4% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 5.5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 4.0x, homes cost about 4.0 times the local median income of $58,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. 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: At current median prices, Sterling Heights is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Sterling Heights
Model a buy-rehab-refinance deal with Sterling Heights data pre-loaded.
Open BRRRR Calculator →