Posted 8 months ago

Deep Dive into Metro Detroit Cities: Dearborn Heights (REFRESH)

If you're considering investing in rental property in Metro Detroit but aren't sure where to start, you're in the right place.

In this Deep Dive series, we explore Detroit’s 185 cities and 290 neighborhoods, covering property prices, rental trends, investment examples, and virtual street tours to guide your decision.

Today, we’re spotlighting Dearborn Heights—a middle-class city near Detroit that’s a favorite among landlords.

This area offers great potential to meet the 1% Rule—if you know where to look. That’s where we come in.

Keep reading for a detailed breakdown of Dearborn Heights as a rental investment hotspot, including the best streets to target.

Let’s dive in!

Overview

Welcome to Dearborn Heights, one of Metro Detroit’s Ring Cities. (Not to be confused with the City of Dearborn, which we’ve covered in another Deep Dive.)

What’s a Ring City? Great question!

Ring Cities like Dearborn Heights border Detroit directly:

Source: Google Maps

These areas—like Dearborn Heights and nearby Redford Twp—are prime spots for rental investors. Unlike most metro areas, Detroit’s real estate market flips the script: inner-city properties are less expensive, while suburban ones cost more. Being close to Downtown without a Detroit zip code is the sweet spot.

Here’s a quick overview:

Dearborn Heights is a Class B residential city offering affordable homes, proximity to Downtown, and a peaceful suburban vibe.

Now, let’s dive into the numbers to explore its rental investment potential.

Housing Market Analysis

Equity gains and cash flow have seen solid growth here in recent years–we’ll break down both the sale and rent trends to show you what we mean.

Sale Trends

As of July 2025, the average listing price in Dearborn Heights is $216,702—double the $108,715 average from March 2017:

Source: Zillow

The market here is competitive, with listings going pending in just 9 days on average, and 43% selling above asking price.

Want more info on specific investment opportunities in Dearborn Heights, Detroit, or Michigan? for a free consultation.

Rent Trends

When we last covered Dearborn Heights in 2022, the average monthly rent was $1,350. Today, it’s $1,600.

Across Detroit, the average rent is $1,200/month, making Dearborn Heights a prime example of why Ring Cities often outperform Detroit proper. They offer higher RTPs, better cash flow, and greater equity growth potential.

Now, let’s explore some current listings in Dearborn Heights and crunch the numbers.

Investment Opportunities in Dearborn Heights, MI

As of July 2025, Zillow lists 107 homes for sale and 108 for rent.

There’s a clear price divide between the northern and southern halves of Dearborn Heights:

North: Homes start around $200k, with some luxury properties nearing $1M.
South: Single-family homes range from $150k-$200k, with rents between $1,300-$1,700.

On average, the north is about 25% more expensive than the south for both sales and rentals. (Fun Fact: Dearborn Heights was originally two separate townships, merged in 1960, which explains the distinction.)

When searching for properties, keep this in mind:

South: Easier to find cash-flowing units at affordable prices.
North: Better for long-term appreciation—if you can snag a great deal!

Example Investment Properties

Let’s compare investment opportunities in Dearborn Heights by examining one property in the north and one in the south.

South Dearborn Heights: The Turnkey Rental
This 3-bedroom home is located in the southern half of Dearborn Heights, near Van Born Road, a key shopping area. It’s move-in ready for tenants, with no repairs needed, and recently had a $9k price cut—leaving room for potential negotiation.

Google Street View shows Weddel Street as a charming, tree-lined residential road with well-kept homes and grassy sidewalks—no boarded-up houses in sight!

This highlights the appeal of Ring Cities like Dearborn Heights: desirable communities where tenants want to live.

Here’s the breakdown:

Purchase Price: $156,200 (Zestimate)
Repair Costs: $0
After-Repair Value: $156,200
Rent Zestimate: $1,775
RTP Ratio: 1.14%

It’s easy to see why landlords are drawn to Ring Cities like Dearborn Heights. And there’s even more to discover…

North Dearborn Heights: The Fixer-Upper

This property is a rare find, as multi-family units are uncommon in north Dearborn Heights. However, it does require renovations to modernize the space:

With a Zestimate of $211,300, it offers the chance to own two 2-bedroom apartments, each renting for approximately $1,300/month. If you’re ready to put in the work, here’s how the numbers could shape up:

Purchase Price: $211,300
Repair Costs: $30,000
After-Repair Value: $241,300
Estimated Monthly Rent: $2,600
RTP Ratio: 1.08%

Additionally, Zillow data shows this property has appreciated 101% over the past decade, suggesting strong potential for equity growth.

Area and Tenant Quality

Now that we’ve covered the data, let’s dive into what makes Dearborn Heights attractive to tenants, including:

Housing Stock Quality
Tenant Quality
Area Development
Crime & Safety

This city is known for its quiet, residential streets, tree-lined sidewalks, and well-maintained homes. It’s a family-friendly area, reflected in both the housing stock and the type of residents it attracts.

Housing Stock

The average home in Dearborn Heights was built in 1959, which means older properties may come with potential issues like:

Corroded or outdated cast-iron plumbing
Asbestos in insulation, tiles, or ductwork
Lead-based paint on walls or trim
Deteriorated structural supports or framing
Insufficient or absent insulation
Aging systems: roof, HVAC, plumbing, and electrical

That said, with 72% of homes being owner-occupied, most properties are well-maintained, and you won’t find boarded-up windows here (unlike some parts of Detroit proper).

Housing Breakdown:

88% of homes are single-family houses (SFHs).
The north features a mix of apartments, condos, and even $1M luxury mansions.
The south is almost exclusively SFHs, with a variety of architectural styles: brick homes, timber-frame ranches, 1930s bungalows, etc.

Overall, Dearborn Heights scores high for housing stock, offering move-in-ready properties with minimal repair needs—ideal for rental investors.

Tenant Stock

Tenants are the backbone of any rental investment.

So, what kind of tenants can you expect in Dearborn Heights?

Based on the rule of “Rent = 3x monthly salary,” most residents can comfortably afford rent:

Average Monthly Household Income: $5,086.25
Average Monthly Rent: $1,600
Income-to-Rent Ratio: 3.18x

However, with household income only slightly above the 3x rent threshold, it’s worth monitoring as rents continue to rise.

Dearborn Heights attracts families with its good schools, parks, and quiet community vibe. It’s also home to a large Muslim community, with many mosques and halal eateries.

In summary, this is a close-knit, Class B city that appeals to reliable tenants who pay on time, care for properties, and stay long-term.

Economic Development

Metro Detroit has been undergoing significant changes, with Ford’s Michigan Central Station revamp driving billions in investment and attracting automotive tech companies.

While Dearborn Heights isn’t at the center of this transformation, it’s well-placed for commuters to Downtown.

The city is also working to improve quality of life through initiatives like:

: Focused on affordable housing, public programs for lower-income residents, and infrastructure updates.
: A 13-mile I-94 update to improve safety and reduce traffic, benefiting Dearborn Heights commuters.

Crime and Safety

Residents generally feel “pretty safe” in Dearborn Heights, with responsive police services:

Compared to Metro Detroit as a whole, Dearborn Heights is relatively safe.

This is another key distinction between Detroit and its Ring Cities, so don’t let Detroit’s reputation cloud your judgment!

Investment Report Card

Let’s sum it all up with our rental investment Report Card:

Why Dearborn Heights is a Solid Class B+ Investment

Dearborn Heights offers:

A Reliable Tenant Base: Family-friendly with a strong community feel, making it easier to find dependable tenants.
Good Property Stock: Well-maintained homes with strong appreciation potential, with prices starting at $100k+.
High Rental Demand: Fueled by rising rents and the area’s desirability, ensuring steady cash flow.

Streets to Focus On

Here are our top picks for investment opportunities:

Heyden Street & Surrounding Blocks: Located in northern Dearborn Heights, homes here typically meet the 1% Rule, selling for $150k-$200k and renting for $1,500-$2,000. The street features brick houses and well-kept lawns, showing pride of ownership.
Gertrude Street: In southern Dearborn Heights, this area is about 25% cheaper than the north but maintains a similar vibe. Expect sales prices of $100k-$200k and rents of $1,000-$2,000.

This isn’t an exhaustive list—most streets in Dearborn Heights offer great potential for rental investing.

So if you’re looking for your next Metro Detroit rental, Dearborn Heights is definitely worth exploring!

Stay tuned for our upcoming Deep Dives into other Metro Detroit neighborhoods. If you have a specific area in mind, leave a comment, and we'll be sure to cover it in one of our next installments.

Want to explore investment properties in Dearborn Heights? for a list of our available units.