Warren is a mid-range market in the Midwest with a smaller market with 139,000 residents. At a 4.09% estimated cap rate, this is a moderate market where rents of $1,460/mo lag behind home prices. With a median home price of $260,000 and population is roughly stable, Warren 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
Warren's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $260,000, the $1,460/mo rent produces only $887/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 ($52K at 7%) would result in approximately $-496/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 21% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Warren a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
All figures below are computed from Warren's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
At 1.44% effective rate on the $260,000 median price, the annual tax bill is $3,744 — that's above national average (+36% 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.
If Warren continues appreciating at 2.2%/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 | $260K | $1,460 | 4.1% |
| Year 1 | $266K | $1,504 | 4.1% |
| Year 2 | $272K | $1,549 | 4.2% |
| Year 3 | $278K | $1,595 | 4.2% |
| Year 4 | $284K | $1,643 | 4.2% |
| Year 5 | $290K | $1,693 | 4.3% |
Same median-priced Warren 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 | $260K | $887 | $10,645 | 4.1% |
| 20% down conventional @ 7% | $60K | $-496 | $-5,954 | -10.0% |
| 25% down DSCR @ 8.5% | $75K | $-612 | $-7,350 | -9.7% |
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) | $195K | $1,241 | $8,028 | 4.1% | $669 |
| At median | $260K | $1,460 | $8,882 | 3.4% | $740 |
| Above median (~125% price) | $325K | $1,679 | $9,735 | 3.0% | $811 |
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 Warren's historical appreciation rate of 2.2%:
On a $52K down payment, that's a 30.2% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Automated checks against the underlying data — surface only the risks that actually apply to Warren, not generic boilerplate:
Pre-filled with Warren medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Warren.
Warren, MI has a population of 139,000 and has been growing at 0.1% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $260,000 paired with median rents of $1,460/mo produces an estimated cap rate of 4.09%.
Property taxes at 1.44% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.3x, homes cost about 5.3 times the local median income of $48,600. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 2.2% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Warren presents moderate opportunities. Cap rates near 4.09% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.