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.
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.