Deep Dive into Harper Woods, MI: A Detroit Ring City

Deep Dive into Harper Woods, MI: A Detroit Ring City

Harper Woods, Michigan, is one of Metro Detroit’s many and varied suburbs–185 cities and 290 neighborhoods, to be exact.

So, while the Detroit area is hugely popular with rental investors from out of state and even overseas, it can be a pretty complicated region to get to grips with.

That’s why we created this Deep Dive series. We’re taking you through every neighborhood in the City of Detroit–and every city in the Metro area–one by one.

Today, it’s Harper Woods’ turn.

First up, we hit the streets to show you around this

Then read on for all the data you need to evaluate Eastpointe’s investment potential, including:

• Sale Trends
• Rents Trends
• Current Properties on the Market
• Tenant Demographics
• Neighborhood Livability
• …and more.

For example, we’ll even tell you exactly which streets have great rental investment potential.

And if you want to compare Harper Woods to other areas on your radar, you can check out all the cities we’ve covered in our past Deep Dives:

Interested in an area that’s not listed here? Please let us know! We’d be happy to share our data with you, and we’re always open to suggestions on which neighborhood to cover next.

For now, let’s Deep Dive into Harper Woods.

Overview of Harper Woods, Michigan

Harper Woods sits at the corner of Wayne County, just beside the City of Detroit and the highly-desirable lakeside Grosse Pointe neighborhoods:

 

Harper Woods is what we like to call a “Ring City”—a city bordering Detroit that combines the convenience of proximity with distinct advantages like affordable properties, strong rental appeal, and a higher quality of life.

Translation? It’s an ideal spot for rental investors.

But don’t just take our word for it—take a look at the fast facts on Harper Woods below to get a better feel for the area:

To put it simply, Harper Woods is a Class B city on an upward trajectory, steadily growing in popularity among renters.

The city is experiencing an influx of investment and revitalization—this includes a new high school, fresh apartment developments, and even a massive commercial-industrial project in place of the old Eastland Center Mall.

Our last Deep Dive into Harper Woods was back in January 2021, where we gave it a score of “B” overall for its:

• Affordable property stock (the average sale price was $101k in 2021)
• Excellent cash flow potential (with an average RTP of 1.32%)
• Strong appeal with tenants (thanks to its “trendy” reputation)

We also said we thought the market here was going to heat up more, as we predicted that residents would be gradually priced out of other nearby desirable areas, like East English Village (EEV) and Eastpointe .

Now it’s time to see if our predictions were accurate.

Housing Market Analysis

First, we’re going to look at property prices and rental trends in Harper Woods over the past few years.

Sale Trends

As of February 2025, the average home value in Harper Woods is $152,192–nearly triple what it was less than a decade ago:

 

But within these averages, you have some variation between the north and south. Homes closer to the Pointes tend to fall closer to the $200k mark, whereas in the southwest you can still find many deals around $100k (or even less).

Want more info on specific investment opportunities in Harper Woods, Detroit, or Michigan? Contact us for a free consultation.

Rent Trends

Back in 2021, the average monthly rent in Harper Woods was $1,240/month, but as of February 2025, it’s increased to $1,350/month:

 

According to Niche, 56% of properties in Harper Woods are priced between $100,000-$200,000, and 76% of rentals fall in the $1,000-$2,000 range, so it should be easy to find a property that fits the 1% rule.

Even better news: 27% of units here are still valued under $100k:

Let’s take a look at some actual properties on the market right now to illustrate.

Investment Opportunities in Harper Woods, MI

As of the time of writing (February 2025), there are 58 homes for sale in Harper Woods, but just 27 rentals on the market:

This just goes to show how in-demand rental units are in this city.

Anything good that hits the market doesn’t stay there long!

Example Investment Properties

Now, let’s zoom in on two of these properties in Harper Woods (for sale at different price points), so you can compare the types of investment opportunities available here.

1. The Turnkey Rental (Perfect for First-Time Investors)

This is a small 2-bedroom house in perfect rent-ready condition, located near the border with the City of Detroit:

Because of its location on the Detroit side of Harper Woods, you’re not going to see as big of equity gains as you could with Property #2 below. But this is a great option to get onto the rental investment ladder for under $100k, with the potential for strong cash flow:

Purchase Price: $86,600 (based on the Zestimate)

Repair Costs: $0

After-Repair Value: $86,600

Suggested Rent: $1,102 (based on the Rent Zestimate)

RTP Ratio: 1.27%

This unit might be less than 700 sq. ft., but those are pretty mighty returns for such a small investment. And there are several houses on the market right now at a similar price point.

If you’ve got a little more cash to play with, though, there are many more options in Harper Woods in the $100k- $150k range.

1. The Fixer-Upper (Perfect for Long- AND Short-Term Gains)

This is a much larger, 3-bedroom home on the other end of Harper Woods, close to Salter Memorial Park, Grosse Pointe Woods, and the Country Club of Detroit:

Because of its more desirable location, you can expect much stronger equity gains here in the long term, and considerably higher rents (the Zestimate is $1,621/mo).

This house does need a little work to get it up to rent-ready standards, but if you’re unafraid of some bathroom and kitchen renovations, here’s what the numbers might look like:

Purchase Price: $132,900 (according to the Zestimate)

Repair Costs: $15,000

After-Repair Value: $147,900

Suggested Rent: $1,621

RTP Ratio: 1.1%

So, even at a higher price point, the 1% Rule is still totally achievable here.

And you’d be able to add a decent amount of value even in the short term: 21525 and 21315 Bournemouth St both sold in summer 2024 for $170,000 apiece, and both are very similar to this property, except with all the work done.

Area and Tenant Quality

Now that we’ve looked at the numbers, let’s move on to a more qualitative analysis.

We’re going to analyze Harper Woods’:

1. Housing Stock Quality
2. Tenant Quality
3. Area Development
4. Crime & Safety

To give you an idea of the area livability, and what kinds of tenants it attracts.

Housing Stock

Most of the homes in Harper Woods (around 88%) were built between 1940-1969, and by far the most popular type of home here is bungalow style, of either brick or frame construction.

The housing stock here is also fairly bijoux: around 1,000 square feet, with relatively small lots.

But this means the properties here remain very affordable, both for investors and owner-occupiers, who make up 66% of residents here. That pretty high homeownership rate is also reflected in how well-maintained the majority of the neighborhoods are.

And, as we’ve seen, most units here don’t need significant repairs. However, if you’re looking for a fixer-upper, keep an eye out for common issues like:

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

Homes from the 40’s and 50’s might be hiding issues like these, so always check when doing inspections.

Tenant Stock

Tenants are the most important part of any rental investment.

So, what kind of tenants can you expect in Harper Woods?

Here’s a snapshot:

In short, Harper Woods is home to a diverse tenant pool, encompassing both white- and blue-collar workers. But there’s a noticeable contrast in demographics and housing stock between its southern and northern halves.

On the southern side, closer to Detroit, rental properties are more prevalent and tend to attract tenants with lower incomes. Meanwhile, the neighborhoods bordering affluent Grosse Pointe draw higher-income residents, with higher average property prices and rents. So new investors need to be aware of this divide.

But, based on the general rule of “Rent should = 3x monthly salary”, most Harper Woods residents should be capable of paying rent consistently each month:

• Average Monthly Household Income: $4,883.92
• Average Monthly Rent: $1,350
• Income = 3.6x Monthly Rent

In summary, this is a predominantly Class B area, and it attracts Class B tenants–with the exception of some streets closer to the border with Detroit.

Economic Development

Harper Woods has been riding the same rising tide as all of Detroit. With higher property values come more tax dollars, and the city has been putting them to good use to upgrade the area.

Notable projects include:

• Eastland Commerce Center: Transforming the former Eastland Mall site, this $135 million redevelopment introduces three modern warehouses for industrial and commercial use. One is already leased to Thai Summit Corporation, expected to bring 60-80 jobs initially, with more anticipated as occupancy grows.
• New Public High School: Harper Woods has invested in a state-of-the-art high school, including the recently-opened Avatar Academy of Excellence, which aims to create a cutting-edge learning experience and draw more families to the area, boosting demand for nearby housing.

These projects, in addition to other plans for improved infrastructure and community-focused planning, are set to increase property values and rental demand in Harper Woods even further.

Crime and Safety

Harper Woods has a relatively balanced safety profile, making it a solid option for investors who do their homework. Like many suburban communities, crime rates and safety levels can vary depending on the specific neighborhood.

For instance, properties on the southern side of Harper Woods, closer to Detroit, tend to fall within Class C+ neighborhoods. These areas may see higher activity levels, but they also offer affordable entry points for investors willing to take a more hands-on approach to property management.

On the other hand, areas near the affluent Grosse Pointes have more like B+ safety ratings, so keep this in mind when choosing where to buy your investment property here.

We strongly encourage conducting thorough on-the-ground research or teaming up with a local expert, like us, who can provide valuable insights and help you make informed decisions before making a purchase.

Investment Report Card

Now let’s add all of this up and see how Harper Woods performs.

We’ve created this standardized Report Card for each city we cover, so you can understand how we evaluate and determine the overall scores:

In summary, this is a solid Class B+ neighborhood that’s got:

• High demand amongst a solid Class B tenant pool
• Excellent entry-level investment properties at or slightly under $100k
• Well-maintained housing stock without many major issues

What’s not to like?

So, if you’re interested in acquiring a rental of your own here, these are our top picks for the best streets to invest on in Harper Woods

Streets to Focus On:

1. Woodside Street, east of Beaconsfield Street, is next to Beacon Elementary School and boasts all brick houses. It’s slightly more expensive and it might be harder to find properties here that meet the 1% Rule, but this would be a great location if you can find a motivated seller.
2. Woodland Street, just two blocks north, is considerably less expensive. Homes here are mostly frame houses with aluminum siding, meaning they’re very affordable to purchase but make solid rentals. And all the properties are well-kept–no blight issues here, like you see in the City of Detroit.
3. Eastwood Drive, another two blocks north, is also a great option, and pretty typical of what you can expect in Harper Woods: quiet, grassy, tree-lined streets, with a mix of frame, ranch style, and brick homes, some of which have been extended already. Most are priced under $200k, and don’t need major repairs.

Streets to Avoid:

4. Kelly Road, on the western border of Harper Woods, sits opposite Detroit proper. This is a Class C/D area, where you can see some boarded up buildings and lots of commercial properties, so it will attract a lower demographic of tenants.

We hope we’ve armed you with all the information you need to make your next investment decision. But be sure to check out our other Deep Dives for more great areas to consider!

 

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 Harper Woods? Contact us for a list of our available units.