2. Detroit
Detroit
Median home price in 2012: $78,000
Projected home price in 2015: $93,982
Projected annual rent in 2015: $9,016

It's hard to imagine that home prices could get any cheaper in Detroit.

Hit hard by the auto industry's financial troubles and the housing bust, median home prices in the area have been cut almost in half to $78,000 from a 2004 high of $157,000, according to the National Association of Home Builders (NAHB).

And with rents on the rise -- up 5% over the past 12 months, according to Rent Jungle -- these beaten down home prices have created a nice opportunity for investors.

Even better, renters' incomes have become more stable. The auto industry has started down the road to recovery, giving a nice boost to the local economy. The metro area unemployment rate has fallen by 2.4 percentage points over the 12 months ended in April to 8.7%.

Winzer figures investors will earn 4.6-percentage-point higher return than the national average over the next three years.


By Les Christie @Money - Last updated June 28 2012: 12:54 PM ET
Join the Conversation
How much house does $163,000 buy?

From a massive 3,000-square-foot Dallas home (with an indoor fountain) to a tiny fixer-upper East of L.A., here's what you can buy for the nationwide median home price of $163,000 in eight major metro areas.

Find Homes for sale
  • Property Type
  • Find a home in:
    New York | Atlanta | Chicago | Los Angeles
    Washington D.C | Houston | Philadelphia | More options
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.