Detroit assessors present 2026 assessment changes, explain appeals and PRE audits

Deputy CFO and city assessor Alvin Horn told the Budget, Finance & Audit standing committee on Feb. 4 that the city’s average residential assessment increased roughly 10% for the 2026 assessment year and that most neighborhoods saw increases.

"The average assessment in the city for residential properties increased by 10% over the prior year," Horn said in a presentation to the committee. He said the city’s 24-month sales study (04/01/2023–03/31/2025) underpins the valuations and that county equalization directors supply the underlying sales lists used for analysis.

Horn and Deputy Assessor Cynthia Burton emphasized that although assessed values rose, the taxable value that determines a homeowner’s tax bill is constrained by the Michigan Constitution’s caps for legacy owners. "That cap is 2.7%," Horn said, noting the cap applies for homeowners who did not purchase property in 2025.

Why it matters: the presentation outlined how assessment growth and the constitutional uncapping rule interact differently for long-term owners and recent buyers. Council members raised concerns that uncapping can produce steep tax jumps for new homeowners and that Detroit’s overall millage rate remains high compared with surrounding suburbs.

The assessors described how values are computed and adjusted. Horn said the office uses a 24-month sales study and applies Economic Condition Factors (ECF) to account for local variations, including many non-arm’s-length transactions in Detroit’s market. "We use the ECF to push values down," Horn said, explaining that quitclaim deeds and land contracts inform but do not directly set assessed values.

The presentation set out the appeals timeline and the three-tier review process residents must follow to preserve appeal rights: an assessor’s review (informal), the Board of Review (required step for residential owners to preserve rights) and the Michigan Tax Tribunal (administrative court). Horn urged property owners to use the assessor’s review so staff can inspect properties and consider physical condition in valuations.

On PRE audits and owner-occupant exemptions, Burton said the assessor’s office will publish a list of "questionable" properties for public visibility and will send questionnaires to property owners as part of PRE verification. She said an LLC may hold a PRE only if an individual retains at least 1% ownership and stressed that staff will seek deed documentation before granting exemptions.

Council members pressed assessors on sales-volume trends, neighborhood condition adjustments and the role of developers and investor purchases. Horn repeated that the office sends appraisers into neighborhoods to inspect conditions and adjust values where warranted: "We're not relying on an average — we're sending people up and down these streets trying to determine the condition of the neighborhoods."

Next steps and follow-up: Horn told the committee he will provide district-level breakdowns of assessment changes by the end of the month, and the assessor’s office said it will continue outreach (radio, community meetings and improved web content) to increase public awareness of appeal rights.

The committee did not take formal action on the presentation; the assessors answered questions and said they would circulate additional materials to council members.