Utilities can add a meaningful amount to the cost of renting in the city of Detroit. The U.S. Energy Information Administration reports that Michigan residential electricity customers used an average of 618 kilowatt hours a month in 2024, paid an average of 19.30 cents per kilowatt hour, and had an average monthly bill of $119.31 (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)).
This guide explains what those figures mean for renters, which utilities you are likely to pay, how to estimate your bills before you sign a lease, and where to find help.
Quick answers
- Average Michigan residential electric bill, 2024: $119.31 a month (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)).
- U.S. average: $142.26 a month, at 16.48 cents per kilowatt hour (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)).
- Median gross rent in Detroit: $1,074 a month, which already includes utilities paid by renters (Homzora Detroit dataset, Table B25064; U.S. Census Bureau, QuickFacts definition of gross rent).
Electricity in Michigan compared with the U.S.
| Measure | Michigan | United States |
|---|---|---|
| Residential customers | 4,516,367 | 143,144,185 |
| Average monthly use (kWh) | 618 | 863 |
| Average price (cents per kWh) | 19.30 | 16.48 |
| Average monthly bill | $119.31 | $142.26 |
Source: EIA 2024 residential averages (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)). Michigan’s average bill is $22.95 lower than the national average, and its average price is 2.82 cents higher per kilowatt hour. Price drives the bill: rates here are above the national average even though usage is lower.
These are statewide averages for all residential customers, including houses. An apartment renter’s usage depends on the size of the home, the heating and cooling system, appliances, and household habits, so your bill can be well above or below the average.
What gross rent already includes
The Census Bureau’s gross rent measure is contract rent plus the estimated average monthly cost of electricity, gas, water and sewer, and fuels, when the renter pays them (U.S. Census Bureau, QuickFacts definition of gross rent). The Detroit median of $1,074 (Homzora Detroit dataset, Table B25064) therefore already reflects typical utility costs. When you compare a listing to that median, add the utilities the listing does not include; otherwise the listing will look cheaper than it is.
Estimating total housing cost
| Advertised rent, electricity not included | Plus the state average electric bill | Income needed at 30 percent |
|---|---|---|
| $774 | $893 | $35,732 |
| $924 | $1,043 | $41,732 |
| $1,074 | $1,193 | $47,732 |
This table adds Michigan’s 2024 average residential electric bill of $119.31 (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)) to sample advertised rents and applies HUD’s 30 percent benchmark for cost burden (HUD Office of Policy Development and Research, CHAS Background). Add gas, water, trash, and internet if you pay them separately. Our salary guide covers the income math in more detail (Homzora, Salary needed to live in Detroit).
Which utilities renters usually pay
| Utility | Who usually pays | What to ask |
|---|---|---|
| Electricity | Often the renter | Which provider serves the unit, and what were recent bills? |
| Natural gas | Varies | Is heat or cooking gas, and is it included? |
| Water and sewer | Varies | Is it included, billed by the landlord, or in my name? |
| Trash and recycling | Often included or billed as a fee | Is there a monthly fee? |
| Internet | Usually the renter | Which providers serve the building? |
Arrangements vary by building and landlord, so get the answer in writing before you sign.
Questions to ask before you sign
- Which utilities are included in the rent, and which are in my name?
- Can you share the average monthly cost for this unit or a similar one?
- Is heating electric or gas?
- Is there a separate fee for water, sewer, or trash?
- Are there utility setup or deposit requirements I should know about?
Ways to lower your bills
- Ask for the unit’s past bills and compare similar units before choosing.
- Use a programmable or smart thermostat if allowed.
- Report drafty windows, leaks, and broken appliances in writing.
- Use LED bulbs and run full loads in dishwashers and washers.
- Ask your provider about budget billing to smooth out seasonal swings.
Help paying energy bills
The Low Income Home Energy Assistance Program helps with heating and cooling bills and energy crises, through state and territory offices that set their own income based requirements. The Weatherization Assistance Program funds energy saving home improvements, and each state sets its own rules on when utilities can be shut off for nonpayment (USA.gov, Help with energy bills). You can also call 211 to ask about local help (211.org).
Budget for utility setup
When you move, some providers require a deposit or setup fee, and your first bill may arrive soon after move in. Include those costs in your move in budget (Homzora, Move in costs in Detroit).
About the data
Electricity figures are EIA’s 2024 statewide averages for residential customers (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)). Rent figures are 2020 to 2024 American Community Survey estimates (Homzora Detroit dataset, Table B25064). Statewide averages do not reflect differences between utilities or between apartments and houses.
Seasonal swings
Electric and gas bills usually change with the seasons, rising when heating or air conditioning runs hardest. A bill from a mild month can understate what you will pay in the peak of summer or winter. When you ask a landlord or provider for past bills, ask for a full year if possible, or at least one summer and one winter month.
Reading a utility bill
- Usage in kilowatt hours for electricity, or therms or cubic feet for gas.
- Energy or supply charges, which vary with how much you use.
- Delivery or distribution charges for the lines and pipes that reach your home.
- Fixed monthly charges that apply even if you use very little.
- Taxes and fees set by state and local governments.
Comparing usage month to month is the best way to spot a problem, such as a running toilet or a failing appliance, before it becomes expensive.
Setting up utilities
Call each provider two to three weeks before your move in date. Ask whether a deposit is required, whether it can be waived with a letter of good payment history from your previous provider, and when service can start. Schedule electricity and water to begin on your move in day so you are not without service, and confirm which utilities the landlord keeps in its own name.
Budgeting for the first month
Move in cash covers the upfront payments, but the first month in a new home brings other costs: groceries to restock the kitchen, cleaning supplies, small furniture, and sometimes a gap between paychecks. Setting aside a cushion beyond the amount due at signing makes the transition far less stressful.
Communicating with your landlord
Put important requests in writing, such as repair requests, questions about charges, and notices about moving out. Email or a tenant portal creates a dated record. Keep messages short and specific, describe the problem and when it started, and attach photos when they help. Polite, written communication resolves most issues and protects you if a dispute arises.
Beyond rent: the rest of the budget
The 30 percent guideline leaves 70 percent of gross income for everything else, including taxes, transportation, food, child care, health costs, debt payments, and savings. A household with a long commute, a car payment, or student loans may find that 30 percent of income is more than it can comfortably spend on rent. Building a full monthly budget, with each of these costs listed, gives a more reliable answer than any single rule of thumb.
Internet service
Internet is rarely included in rent, though some buildings offer bulk service for a monthly fee. Ask the landlord which providers serve the building, whether wiring is already in place, and whether a building fee is mandatory. Compare introductory prices with the regular rate after any promotion ends, and ask about equipment rental and installation charges.
Splitting utilities with roommates
When bills are in one roommate’s name, agree in writing how they will be split and when payments are due. Shared payment apps make it easier to track who has paid. The person whose name is on the account is responsible to the provider if others fall behind, so consider rotating accounts or splitting them across roommates.
Closing accounts when you move out
Schedule service to end the day after your lease ends, not the day you move out, so the unit has power for your final walkthrough. Take a photo of each meter reading on your last day and keep the final bills. If you paid a utility deposit, ask how and when it will be refunded.
Frequently asked questions
How much is the average electric bill in Michigan?
$119.31 a month for residential customers in 2024 (U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)).
Does median rent include utilities?
Yes. Census gross rent includes utilities and fuels paid by the renter (U.S. Census Bureau, QuickFacts definition of gross rent).
Where can I get help with a high bill?
Ask your provider about payment plans, and check LIHEAP through your state office (USA.gov, Help with energy bills).
Sources
- U.S. Energy Information Administration, 2024 Average Monthly Bill, Residential (Table 5A)
- Homzora Detroit dataset, Table B25064
- U.S. Census Bureau, QuickFacts definition of gross rent
- HUD Office of Policy Development and Research, CHAS Background
- Homzora, Salary needed to live in Detroit
- USA.gov, Help with energy bills
- 211.org
- Homzora, Move in costs in Detroit