Foreclosed Homes in Detroit and Distressed Properties for Sale
Foreclosure listings on Zillow, Realtor.com, and Auction.com are seen by every buyer in Detroit. However, ForeclosuresDaily.com finds distressed real estate for sale before it gets there: motivated sellers who want to liquidate fast, reached privately and off the MLS.
Detroit, Michigan housing market at a glance
$159,900
Median listing price (down 3%)
9,307
Active listings in Wayne County
45 days
Average time on market
$1,250
Median rent (down 3.9%)
Market data: Realtor.com Wayne County housing market, October 2026. Zillow Home Value Index for Wayne County: $178,627 (up 1.2% from a year earlier), August 2026. View homes on Zillow.
What is a distressed property?
A distressed property is a home whose owner is under pressure to sell. Usually, the cause is a life event, such as a missed mortgage payment, a death in the family, a divorce, unpaid property taxes, or repairs the owner cannot afford.
With a median listing price near $160,000, Detroit attracts landlords and out-of-state buyers, and listed bargains go fast. However, investors who win here buy from owners whose property is for sale privately and not listed on the Multiple Listing Service (MLS), where there is less competition and more room to negotiate.
Detroit has about 639,111 residents (2020 census) and sits in Wayne County, Michigan. Also, the ZIP codes with the most homes for sale today are 48224, 48227, and 48228.
How to find distressed properties in Detroit
Foreclosure listing sites show homes after the bank or auction is involved. Therefore, to find a deal first, work earlier in the timeline:
- Pick your ZIP codes Initially, start with a few Detroit ZIP codes where you know values and have cash buyers ready.
- Choose lead types Next, pick your leads, because probate, pre-foreclosure, divorce, code violation, and tax delinquency leads each signal a different reason to sell.
- Use fresh data Then use ForeclosuresDaily fresh leads, which are updated daily, so that you reach owners before other investors mail them.
- Target your marketing In addition, data targeting your marketing means mail, calls, and texts go only to owners with a real reason to sell.
- Run the numbers After that, estimate the after-repair value (ARV) from nearby sales, and then apply the 70% Rule.
- Make a fair offer Finally, solve the seller’s problem with a quick, as-is cash close, then wholesale or flip the property.
Motivated sellers who want to liquidate fast
For this reason, ForeclosuresDaily.com’s off-market real estate platform covers every major distress signal in Detroit, cross-referenced with tax rolls and property appraiser records.
Probate leads
Executors who must sell before the estate can close. See probate leads →
Pre-probate leads
Families who may sell before a probate case is filed. See pre-probate leads →
Inheritance leads
Heirs who want to sell because they won’t keep the home. View inheritance leads →
Foreclosure leads
Owners behind on payments who want to sell before auction. Explore foreclosure leads →
Divorce leads
Couples who must sell when they divide shared assets. Find divorce leads →
Eviction leads
Tired landlords who want out because of problem tenants. Browse eviction leads →
Code violation leads
Owners facing fines and repairs they can’t afford. See code violation leads →
Tax-delinquent leads
Owners behind on property taxes who need cash soon. Target tax-delinquent owners →
Absentee owner leads
Out-of-area owners, especially those far from the property. Reach absentee owners →
Life leads and FSBO
Owners selling on their own rather than with an agent. Shop all lead products →
ARV and the 70% Rule for Detroit flips
Real estate flippers and wholesalers use the after-repair value (ARV) to set their maximum offer. For example, the 70% Rule says to pay no more than 70% of ARV, minus repairs. As a result, that margin covers holding costs, closing costs, and profit for property flipping, or your assignment fee when you wholesale.
For instance, here is the math using the Wayne County median listing price as the ARV and an 8% repair budget.
70% Rule example
| Step | Amount |
|---|---|
| ARV | $159,900 |
| 70% of ARV | $111,930 |
| Estimated repairs | − $13,000 |
| Maximum offer |
Detroit ZIP codes to target
Each Detroit ZIP code has its own price point and pace. Next, open a ZIP code below to open its investing data, and then match the area to your strategy.
ZIP 48202 · New Center · $265,000 · Buy & hold
48202 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $265,000 ▲ 5.9% |
| Price per sq ft | $152 |
| Days on market | 65 days ▲ 12.5% |
| Median rent | $1,600 ▲ 6.7% |
| Active listings | 221 ▲ 19.6% |
| Gross rent yield | 7.2% |
In addition, the Zillow Home Value Index is $180,793 (down 12.3% from a year earlier) as of August 2026.
Prices per square foot run higher here than anywhere else on this list. Meanwhile, the median price is up 5.9% from a year earlier, and inventory is up 19.6%. As a result, rents cover a larger share of the price here, which helps rental investors.
Max offer when the ARV equals the median price: $265,000 × 70% − $21,000 repairs = $164,500 max offer
Also see the full 48202 market report on Realtor.com →
Then view 48202 homes on Zillow →
ZIP 48204 · Detroit · $73,700 · Negotiate
48204 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $73,700 ▼ 17.6% |
| Price per sq ft | $56 |
| Days on market | 61 days ▲ 34% |
| Median rent | $1,100 ▲ 4.8% |
| Active listings | 213 ▲ 22.7% |
| Gross rent yield | 17.9% |
In addition, the Zillow Home Value Index is $57,263 (down 6.3% from a year earlier) as of August 2026.
Entry prices are lower here than in the rest of the group, so it fits wholesaling and first flips. Meanwhile, the median price is down 17.6% from a year earlier, and inventory is up 22.7%. Therefore, softer pricing gives you room to negotiate with motivated sellers.
Max offer when the ARV equals the median price: $73,700 × 70% − $6,000 repairs = $45,590 max offer
Also see the full 48204 market report on Realtor.com →
Then view 48204 homes on Zillow →
ZIP 48206 · New Center · $179,999 · Negotiate
48206 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $179,999 ▼ 18.1% |
| Price per sq ft | $97 |
| Days on market | 64 days ▲ 18.5% |
| Median rent | $1,300 |
| Active listings | 252 ▲ 13.9% |
| Gross rent yield | 8.7% |
In addition, the Zillow Home Value Index is $87,394 (down 13.4% from a year earlier) as of August 2026.
Meanwhile, the median price is down 18.1% from a year earlier, and inventory is up 13.9%. For this reason, sellers here are adjusting to slower demand, so offers below asking get a hearing.
Max offer when the ARV equals the median price: $179,999 × 70% − $14,000 repairs = $111,999 max offer
Also see the full 48206 market report on Realtor.com →
Then view 48206 homes on Zillow →
ZIP 48214 · Indian Village · $240,000 · Negotiate
48214 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $240,000 ▲ 38.2% |
| Price per sq ft | $146 |
| Days on market | 71 days ▲ 17.3% |
| Median rent | $1,300 ▲ 4.4% |
| Active listings | 251 ▲ 17.5% |
| Gross rent yield | 6.5% |
In addition, the Zillow Home Value Index is $96,393 (down 15.1% from a year earlier) as of August 2026.
Meanwhile, the median price is up 38.2% from a year earlier, and inventory is up 17.5%. Because of this, use the extra time on market to negotiate repairs into your price.
Max offer when the ARV equals the median price: $240,000 × 70% − $19,000 repairs = $149,000 max offer
Also see the full 48214 market report on Realtor.com →
Then view 48214 homes on Zillow →
ZIP 48219 · Detroit · $91,000 · Negotiate
48219 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $91,000 ▼ 9.4% |
| Price per sq ft | $92 |
| Days on market | 51 days ▼ 1.9% |
| Median rent | $1,200 ▼ 4.9% |
| Active listings | 267 ▼ 10.6% |
| Gross rent yield | 15.8% |
In addition, the Zillow Home Value Index is $90,816 (down 1% from a year earlier) as of August 2026.
Meanwhile, the median price is down 9.4% from a year earlier, and inventory is down 10.6%.
Max offer when the ARV equals the median price: $91,000 × 70% − $7,000 repairs = $56,700 max offer
Also see the full 48219 market report on Realtor.com →
Then view 48219 homes on Zillow →
ZIP 48224 · East English Village · $90,000 · Negotiate
48224 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $90,000 ▼ 8.2% |
| Price per sq ft | $84 |
| Days on market | 59 days ▲ 9.1% |
| Median rent | $1,250 ▲ 4.2% |
| Active listings | 424 ▲ 5.1% |
| Gross rent yield | 16.7% |
In addition, the Zillow Home Value Index is $81,950 (down 6.4% from a year earlier) as of August 2026.
Largest inventory on the list, so there are more owners to reach. Meanwhile, the median price is down 8.2% from a year earlier, and inventory is up 5.1%.
Max offer when the ARV equals the median price: $90,000 × 70% − $7,000 repairs = $56,000 max offer
Also see the full 48224 market report on Realtor.com →
Then view 48224 homes on Zillow →
ZIP 48227 · Detroit · $89,000 · Negotiate
48227 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $89,000 ▼ 9.2% |
| Price per sq ft | $79 |
| Days on market | 57 days ▲ 8.8% |
| Median rent | $1,250 ▼ 1.6% |
| Active listings | 315 ▼ 4.9% |
| Gross rent yield | 16.9% |
In addition, the Zillow Home Value Index is $70,471 (down 2.9% from a year earlier) as of August 2026.
Meanwhile, the median price is down 9.2% from a year earlier, and inventory is down 4.9%.
Max offer when the ARV equals the median price: $89,000 × 70% − $7,000 repairs = $55,300 max offer
Also see the full 48227 market report on Realtor.com →
Then view 48227 homes on Zillow →
ZIP 48228 · Warrendale · $84,000 · Negotiate
48228 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $84,000 ▼ 6.7% |
| Price per sq ft | $87 |
| Days on market | 50 days ▲ 8.7% |
| Median rent | $1,200 |
| Active listings | 308 ▼ 3.3% |
| Gross rent yield | 17.1% |
In addition, the Zillow Home Value Index is $69,915 (up 0.9% from a year earlier) as of August 2026.
Homes sell faster here than anywhere else on the list. Meanwhile, the median price is down 6.7% from a year earlier, and inventory is down 3.3%.
Max offer when the ARV equals the median price: $84,000 × 70% − $7,000 repairs = $51,800 max offer
Also see the full 48228 market report on Realtor.com →
Then view 48228 homes on Zillow →
ZIP 48235 · Northwest Detroit · $134,825 · Buy & hold
48235 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $134,825 ▲ 13% |
| Price per sq ft | $107 |
| Days on market | 58 days ▼ 2.1% |
| Median rent | $1,300 ▼ 3.7% |
| Active listings | 249 ▼ 0.8% |
| Gross rent yield | 11.6% |
In addition, the Zillow Home Value Index is $96,181 (down 1.6% from a year earlier) as of August 2026.
Meanwhile, the median price is up 13% from a year earlier. Consequently, a strong rent yield makes this a good place to hold a property after you buy it.
Max offer when the ARV equals the median price: $134,825 × 70% − $11,000 repairs = $83,378 max offer
Also see the full 48235 market report on Realtor.com →
Then view 48235 homes on Zillow →
ZIP 48238 · Dexter-Fenkell · $86,500 · Buy & hold
48238 market snapshot
| Metric | Value |
|---|---|
| Median listing price | $86,500 ▲ 9.3% |
| Price per sq ft | $68 |
| Days on market | 75 days ▲ 56.4% |
| Median rent | $1,100 |
| Active listings | 300 ▲ 24.2% |
| Gross rent yield | 15.3% |
In addition, the Zillow Home Value Index is $55,726 (down 5.3% from a year earlier) as of August 2026.
Homes sit longer here than elsewhere, so long market times create motivated sellers. Meanwhile, the median price is up 9.3% from a year earlier, and inventory is up 24.2%. As a result, consider keeping deals here as rentals rather than reselling them.
Max offer when the ARV equals the median price: $86,500 × 70% − $7,000 repairs = $53,550 max offer
Also see the full 48238 market report on Realtor.com →
Then view 48238 homes on Zillow →
Open a ZIP code below to see its investing data, then compare markets. Market data: Realtor.com, October 2026, and Zillow Home Value Index, August 2026. Also, gross rent yield is 12 months of median rent divided by the median listing price; the 70% Rule example assumes repairs of 8% of the median price.
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Detroit foreclosure and distressed property questions
How do I find distressed properties for sale in Detroit?
Initially, start with public-record signals such as pre-foreclosure, probate, divorce, and tax delinquency. ForeclosuresDaily.com gathers these records daily, so that you can contact Detroit owners before the home is listed or sent to auction.
Where can I find foreclosed homes in Detroit?
Bank-owned and auction homes appear on sites like Realtor.com, Zillow, and Auction.com. However, off-market pre-foreclosure leads let you reach owners earlier, while they can still sell on their own terms.
Which ZIP codes have the lowest entry prices?
Among the ZIP codes in this guide, the lowest median listing prices are in 48204 (Detroit) at $73,700, 48228 (Warrendale) at $84,000, and 48238 (Dexter-Fenkell) at $86,500, based on Realtor.com data from October 2026.
Where do homes sell fastest?
ZIP code 48228 has the shortest average time on market in this guide, at 50 days. As a result, fast markets reward investors who can reach owners before a home is listed.
How do I find distressed properties for wholesale profit?
First of all, focus on owners with equity and a reason to sell quickly. Then run the 70% Rule, and finally line up cash buyers before you sign a contract you plan to assign.
Get Detroit distressed property leads today
Fresh, targeted, off-market data for New Center, Detroit, Indian Village, and beyond.