Detroit Housing Market — 2026 Reality Check
The median home price in Detroit is $185,000. At today's rates (6.7%), an 80% conventional loan on that home costs $955/month in principal and interest alone — before taxes, insurance, and HOA.
To qualify under standard bank underwriting (28% front-end DTI), you need a gross income of at least $39,000/year. The median household income in Detroit is approximately $58,000/year — putting the price-to-income ratio at 3.2×.
Median Home Price$185,000
20% Down Payment$37,000
3.5% FHA Down Payment$6,475
Est. Monthly Payment (80% LTV)$955/mo
Salary Needed (28% DTI)$39K+/year
Price-to-Income Ratio3.2× median income
FRC Buyer Demand ScoreCOLD
Current Mortgage Rate Est.6.7%
Frequently Asked Questions
What salary do I need to buy a home in Detroit?
Based on the median Detroit home price of $185,000 and standard 28% front-end DTI ratio, you need a gross income of at least $39,000/year to qualify for a conventional mortgage. With existing debt obligations (car payments, student loans), you may need more.
Is Detroit a buyer's or seller's market in 2026?
Based on FRC Buyer Demand data from active listings, Detroit is currently showing COLD demand. This means buyers have significant negotiating leverage — homes are sitting longer and sellers are reducing prices.
What is the down payment for a home in Detroit?
For the median Detroit home ($185,000): 20% conventional down payment = $37,000. FHA minimum 3.5% down = $6,475. FHA requires a credit score of 580+. Conventional loans typically require 620+.