My First Detroit Section 8 Duplex: Full Numbers Breakdown

[Lauren Wood]

I bought my first Detroit Section 8 duplex for $171k, and here's exactly what the numbers look like after everything is said and done.

Unit 1: $1,135/month Unit 2: $1,043/month Total gross rents: $2,178/month

After property management (10%), taxes, insurance, utilities, vacancy reserve, and maintenance reserves, my monthly net cash flow is $343.

That's not life-changing money on its own. But here's what most people don't talk about: My tenants are also paying down $1,467 in principal in year one alone. On top of that, I'm projecting $5,130 in appreciation in year one at a conservative 3% rate. And my total tax deductions in year one, including depreciation and interest, come out to $13,729.

When you add cash flow, debt paydown, tax savings, and appreciation together, my total year one ROI is 25%.

On a $52k out of pocket investment.

The cash flow alone didn't sell me on this deal. The complete picture did.

Happy to answer any questions about how I analyzed it or how I navigated the Section 8 process in Detroit specifically! 

[Drew Sygit]

Quote from @Lauren Wood:

Quote from @Drew Sygit:

Quote from @Lauren Wood:

I bought my first Detroit Section 8 duplex for $171k, and here's exactly what the numbers look like after everything is said and done.

Unit 1: $1,135/month Unit 2: $1,043/month Total gross rents: $2,178/month

After property management (10%), taxes, insurance, utilities, vacancy reserve, and maintenance reserves, my monthly net cash flow is $343.

That's not life-changing money on its own. But here's what most people don't talk about: My tenants are also paying down $1,467 in principal in year one alone. On top of that, I'm projecting $5,130 in appreciation in year one at a conservative 3% rate. And my total tax deductions in year one, including depreciation and interest, come out to $13,729.

When you add cash flow, debt paydown, tax savings, and appreciation together, my total year one ROI is 25%.

On a $52k out of pocket investment.

The cash flow alone didn't sell me on this deal. The complete picture did.

Happy to answer any questions about how I analyzed it or how I navigated the Section 8 process in Detroit specifically! 

Congrats and welcome to Detroit!

What Detroit Neighborhood is your rental in?

Which Housing Commissions are the S8 vouchers with?

What have the property taxes adjusted to?

When did you get the Certificate of Compliance?
 

 Thanks, Drew! I am in California, though. This is just an investment property for me.

What Detroit Neighborhood is your rental in?
The rental is in 48213 Chandler Park 

Which Housing Commissions are the S8 vouchers with?
I have a HAP Contract (Housing Assistance Payments) through the U.S. Department of Housing and Urban Development Office

What have the property taxes been adjusted to?
I haven't gotten the update from my lender on tax adjustment 

When did you get the Certificate of Compliance?
Unit 1 was certified on 02/10/2025
Unit 2 was certified on 04/01/2026

Ha! I meant welcome to "investing in Detroit":)

Hopefully you visit during the summer and see how much there is to do here!

While HUD funds S8 across the country, they do not handle assignment of vouchers, sending out rent payments, etc. Check your paperwork so you know who your Housing Commissions are!

You should be getting annual tax assessment statements from the City of Detroit Assessors Office. Check those to see how much your Taxable Value has increased. You should also check if your millage rates went from homestead to non-homestead (increase).
NOTE: you won't get these unless you filed the required Property Transfer Affidavit. Title companies prepare them, but do NOT get them recorded at the CIty Assessor's Office.

Why the 14 month gap to get Unit 2 certified?