Deep Dive into Oak Park, MI: a Detroit Ring City
We talk to out-of-state investors every day who are intrigued by the Metro Detroit rental market, but aren’t sure exactly where to buy.
That’s why we created this Deep Dive series: to demystify the metro area’s 185 cities and Detroit’s 290 neighborhoods for landlords, one zip code at a time.
This installment takes you on a tour of Oak Park, Michigan, an inner-ring suburb of Detroit that’s long been popular with rental investors.
Check out our video tour to see why:
If affordable property prices, high rental demand, and financially-stable tenants sound good to you, keep reading. We’ll take you through all of the data and insights we’ve gathered from over 30 years of living and investing here, including details of Oak Park’s:
- Housing stock
- Market dynamics
- Tenant stock
- Area livability
…and more.
So sit back, relax, and welcome to your personal tour of the Motor City.
Overview of Oak Park, Michigan
This isn’t the first time we’ve Deep Dived into Oak Park.
This Ring City—our term for cities directly bordering Detroit—offers a mix of affordability, convenience, and growth potential that makes it an attractive option for both new and seasoned investors.
Last year, we predicted this would be a strong market in the years to come, so we’re revisiting the data again to see what’s changed.
To get started, here’s a quick overview of Oak Park:
All in all, this is a great place to invest, although with the upward trend in prices recently, it won’t be affordable for entry-level landlords for long.
Why is it so appealing to tenants, local businesses, and–by extension–investors?
Close to highly-desirable areas like Ferndale, Oak Park attracts lots of people who are looking for affordable neighborhoods that still provide a great quality of life. Plus, it’s within 10 minutes of 4 different freeways, offering easy access to the City of Detroit and the surrounding suburbs.
So it’s no wonder why both properties for rent and sale go fast here. On average, properties sell in just 9 days, and rents have increased significantly in the past year to reflect rising interest.
Now, let’s take a deeper look at the property market in Oak Park.
Housing Market Analysis
Whilst Detroit might be famous for its under-$100k investment properties, the suburbs don’t have the same rock-bottom prices. And Ring City suburbs like Oak Park command a healthy premium.
The average rent in Oak Park is $1,700 a month, and the average sale price of a single-family home is $228,998, up 1.2% from $225,184 last year.
That leaves you with an average rent-to-price (RTP) ratio of .74% – a little shy of the 1% rule. But, as you’ll see below, there are still plenty of properties you can find here that do fit the 1% rule (for now).
Sale Trends
Over the past few years, house values in Oak Park have skyrocketed.
Since 2018, prices have risen by more than 50%:
Driving this increase is huge demand: properties here go pending in just 12 days typically, and often sell above asking.
Want more info on specific investment opportunities in Oak Park, Michigan? Contact us for a free consultation.
Rent Trends
As home prices have increased, so too have rents, which are up $75 YoY, according to Zillow.
That means that both rents and home values have risen by more than half since pre-pandemic times.
So if you want to invest here, it’s better to get in sooner than later, and aim for a property that needs some work to bring it up to rental standard.
There are still deals to be had in Oak Park (if you know where to look). Don’t worry–we’ll give you our tips for exactly which streets to focus on below.
Investment Opportunities in Oak Park
Let’s take a look at an actual property on the market in Oak Park right now.
Oak Park’s housing stock primarily consists of single-family homes (72.8%), with some apartment complexes (16.9%) and townhomes (6.2%). For the purposes of this Deep Dive, we’re going to focus on single-family homes, since those are most popular with renters.
Properties to the east of Coolidge Highway, close to desirable Ferndale, tend to be more expensive, while those near Eight Mile and closer to Detroit are generally cheaper, as you can see from the properties currently for sale and rent on Zillow:
Of the 67 houses for sale and 97 available rentals, there’s a stark difference in terms of housing type.
While the vast majority of the rental stock are condos or apartments within existing developments, the demand for single-family homes is strong amongst renters.
That spells opportunity for buy-and-hold investors who can secure cash-flowing properties at the right price.
Let’s zero in on some real-life examples to get a feel for what it would look like to invest here.
Example Investment Properties
- The Fixer-Upper
This brick ranch-style home, built in 1950, is very characteristic of the housing stock you’ll find in Oak Park in general:
At nearly 1,600 sq. ft., there’s a decent amount of space to work with here, although it does need a full modernization throughout to bring it up to rent-ready standard. It’s also right next to the high school, so would undoubtedly be popular with family applicants.
Here’s what we reckon the financials would look like (assuming you could negotiate this down $10k or so):
Purchase Price: $140,000
Repair Costs: $30,000
After-Repair Value: $170,000
Rent Zestimate: $1,843
RTP Ratio: 1.08%
See, we told you it’s still possible to find units that cash flow in Oak Park!
That’s why you can’t let average RTPs for a particular neighborhood scare you away right off the bat.
- The Turnkey Rental
If you’d rather not have to do work on a property, or you’re investing from out-of-state, here’s a turnkey rental property that you could start earning income from right away:
Purchase Price: $149,900
Repair Costs: $0
After-Repair Value: $149,900
Rent Zestimate: $1,496
RTP Ratio: 1.00%
Both of these are two of the most affordable properties in all of Oak Park at the moment–almost everything else nearby is selling in the low 200s. But it goes to show that positive cash flow is certainly attainable here.
Hopefully this gives you an idea of what’s possible when investing here, but feel free to reach out to us if you want more detailed data.
For now, let’s move on from the numbers to the more qualitative analysis, before we tally up the final score for Oak Park as a rental investment neighborhood.
Area and Tenant Quality
The increasing demand from homeowners and tenants for properties in Oak Park reflects the fact that it’s one of the more desirable middle-class areas in Metro Detroit.
Not only is it a “nice” neighborhood, with well-kept residences and lots of amenities, it’s also well-connected and close to the nightlife and shopping of Ferndale.
With that being said, here’s why quality tenants are flocking to Oak Park:
Housing Stock
Home ownership rates are fairly high here, at 59%. This means that the majority of houses are well-kept, and the streets of Oak Park are warm and inviting to walk through.
When it comes to the quality of the homes themselves, age is always a fairly good indicator of what to expect, so here’s a breakdown of properties in the city by year built:
As you can see, almost half of all homes were built in the 1950’s, which means you may encounter age-related issues when renovating a unit like our example property above (which was built in 1951).
These might include outdated plumbing or electrics, which can get expensive to replace, so make sure you do a full inspection and get quotes for repairs before putting in an offer.
That being said, since the majority of Oak Park residences are owner-occupied, most have been pretty well maintained, which means exterior renovations like landscaping are often minimal.
Tenant Stock
Oak Park is home to approximately 29,402 residents, with a population density of 5,698 residents per square mile, which is fairly average for the Metro area. The city appeals to a diverse demographic, including families and young professionals, and is the 17th most diverse suburb in Michigan, according to the US Census.
This vibrant community enjoys easy access to trendy nearby Ferndale, as well as local amenities like grocery stores, restaurants, coffee shops, and parks, making it a desirable place to live for a variety of tenants.
Here’s a breakdown of the type of renters you can expect here:
The majority of tenants either live alone or don’t have children, although it is still a popular area with families. And with average rents only $1,700 a month, it’s much more affordable than the US average.
However, with average household incomes at $5,490, you do need to be careful to use strict financial screening if you want to find tenants in Oak Park who can (and will) pay the rent on time consistently:
-
- Average Monthly Household Income: $5,490
- Average Monthly Rent: $1,700
- Income = 3.23x Monthly Rent
That’s very close to the general landlording rule of “income should = 3x rent”, so use multiple points of verification for financial stability here–not just pay stubs.
All in all, though, honestly, when it comes to Detroit, Oak Park probably has one of the strongest tenant pools you can find without venturing into the pricier Class A areas, like Ferndale and Birmingham.
Economic Development
There’s quite a lot happening in Oak Park in 2025. Some of the city’s key projects include:
- Major Community Upgrades: Oak Park is undergoing a $7.5 million transformation, including a new destination playground, upgraded pavilions, restrooms, and a warming kitchen at Shepherd Park.
- Elevate Oak Park Project: The city is launching a multi-phase project to create a central hub featuring a performing arts area, year-round farmers’ market, and event spaces. This development aims to make Oak Park a vibrant gathering spot, increasing its appeal to renters who want a community-focused environment.
- New Community Center and Pool: A modern community center and indoor pool will replace the outdated 1958 facility, offering updated amenities that enhance the quality of life for residents.
These improvements are likely to boost property values and rental demand in the area even further.
Crime and Safety
Overall, crime statistics in Oak Park are at or below national averages.
According to Niche, when residents were polled the majority said that Oak Park is “pretty safe,” which is reflected in the reviews it gets from people who live there.
One lifelong resident says: “My neighbors were always friendly and I felt safe growing up there. There were many shops and things to do in the area without being too touristy like some bigger cities.”
So, while safety may be a concern in some Detroit areas, you can rest assured that crime won’t be a major issue in Oak Park.
Investment Report Card
Now let’s add all of this up and see how Oak Park performs.
We’ve created this standardized Report Card for each neighborhood, so you can understand how we evaluate and determine the overall score:
As you can see, Oak Park offers a compelling blend of:
- Solid Tenant Demand: Oak Park always has been, and always will be, popular with tenants who want quality of life without the price tag of Ferndale.
- Positive Cash Flow Potential: With the right research and area knowledge, it’s relatively easy to find properties that fit the 1% Rule here.
- Quality Housing Stock: Often <1000 sq. ft., these well-maintained ranches make the perfect starter investment homes.
This means that prices will keep rising, but so will the level of competition from other landlords.
So while we still include this as a hot investment area for now, we’ll probably update this Deep Dive in a couple of years to report that it has since become prohibitively expensive for entry-level investors.
Our advice? Buy now, before that updated article gets published.
But before we go, one last thing!
As promised, here are our insider’s tips on where to buy (for those of you who stuck around ‘till the end.)
Streets to Focus On:
- Oak Park High School & Francis Scott Key Elementary: The streets surrounding these two schools, like Rosemary Blvd and Parklawn (property #1 above), are all green, tree-lined streets with cookie-cutter brick ranch style homes and large lots, perfect for tenants with families.
- Majestic Street & Surrounding Blocks: The streets a little further east from the High School are also idyllic residential neighborhoods, but prices start to climb further. If you can find a fix-and-flip deal here, go for it.
This isn’t an exhaustive list–frankly, you can’t really go wrong in Oak Park.
The only area where that’s hard to do is north of I-696, where home values are so high that the numbers don’t work for rentals typically.
Other than that, it’s just a matter of choosing a street that fits your budget, and finding a property that fits the 1% Rule.
That’s why it’s right at the top of our list for Metro Detroit Ring Cities that we recommend landlord clients to look at when they want to expand their rental portfolio.
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 Oak Park’s investment properties? Contact us for a list of our available units.