When meeting investors who have been seeing rental income for a long time, Lansing is often the first recommendation. This is because the rent-to-price ratio is particularly high in this area compared to other places in Michigan.

According to Zillow's ZHVI, the median home value in Lansing is $145,586, which has increased by 2.4% compared to a year ago (Zillow, as of June 30, 2026). East Lansing has a median home value of $282,759, with the same increase of 2.4%. When looking at the entire Lansing-East Lansing metropolitan area, the median value is reported to be $202,727, which has jumped 13.4% over the past year. However, this may also be influenced by an increase in transactions in relatively expensive areas within the metropolitan area, so it should be considered alongside the city's own numbers.

So, what about the rental rates that investors are most curious about? According to RentCafe, the average monthly rent in Lansing is $1,225. When simply comparing this number to the median home value of $145,586, it calculates to an annual rental income of about 10.1% of the purchase price. However, this is just a simple ratio based on the total amount before deducting property taxes, insurance, vacancies, and maintenance costs, and the actual cap rate or cash-on-cash return should be calculated after accounting for these expenses. From my long-term observation of the market, I have seen many cases where investors, relying solely on numbers, ended up with disappointing yields due to property tax reassessments or overlooked vacancy periods.

So, how much inventory is there? As of March 2026, the number of listings is around 300, which is not significantly different from a year ago, with a supply of 2.7 months and new listings down slightly to 154 compared to the previous year. The average time to sell is 40 days, and the sale-to-list price ratio is 98.77%. The situation of limited inventory continues, and this is also influenced by existing owners who obtained loans at low interest rates and are delaying sales due to a lock-in effect that is occurring nationwide. According to Freddie Mac's PMMS, the average rate for a 30-year fixed mortgage is around 6.6% as of July 2026.

We also need to address the risks. If the loan-to-value ratio is increased through excessive leverage, cash flow can turn negative if vacancies last for just a few months, and property taxes can increase after reassessment, leading to higher taxes than initially calculated. Based on my experience observing this market for a long time, it is safer to conservatively estimate tenant turnover or vacancy periods in areas with high rental rates. It is not uncommon to underestimate maintenance costs and then face unexpected repair expenses.

So, what should families coming from out of state check? The property tax assessment method in Michigan may differ from that of the previous state, so one should not budget based solely on the purchase price. For families that prioritize school districts, it is advisable to refer to GreatSchools or niche ratings, but since school district boundaries change frequently, it is recommended to verify the assigned school for the specific address before signing a contract.

East Lansing is adjacent to Michigan State University, so families prioritizing school districts often look at this area before considering downtown Lansing. However, both the purchase prices and rents are higher in this area compared to downtown Lansing, so if only rental yield is considered, downtown may be more favorable, while if school districts and resale stability are prioritized, East Lansing could be a better choice. It is more reasonable to approach the two areas separately based on purpose rather than comparing them on the same criteria.

In summary, Lansing is an area that shows attractive numbers in rental yield calculations, but rather than trusting those numbers outright, it is necessary to recalculate based on actual profits after accounting for all costs. It is also important to remember that excessive leverage or taking interest rate fluctuation risks lightly can lead to long-term losses. For those coming from Korea and preparing for their first purchase, it is advisable to compare pre-approvals from multiple banks, as they may face disadvantages in loan conditions due to a short credit history. This article is not investment or legal advice, and it is recommended to consult with a professional before making any actual contracts.