Heat pump (ducted, outdoor unit + air handler) replacement cost in Detroit, MI
Installed, 3 ton system
A typical heat pump (3 ton system) costs about $5,800 installed in the Detroit area, 1% above the national figure, because HVAC technicians here earn a median $30 an hour against $29 nationally.
Prices by size in Detroit
| Size | Low | Typical | High | National typical |
|---|---|---|---|---|
| 2 ton system | $3,900 | $4,850 | $7,000 | $4,850 |
| 3 ton system | $4,950 | $5,800 | $7,700 | $5,750 |
| 4 ton system | $6,450 | $7,200 | $9,500 | $7,150 |
| 5 ton system | $7,650 | $8,550 | $11,150 | $8,450 |
Local labor: what HVAC technicians earn here
| Hourly wage | Detroit metro | United States |
|---|---|---|
| 25th percentile | $23 | $23 |
| Median | $30 | $29 |
| 75th percentile | $39 | $37 |
The Detroit market
In Detroit, the Buildings, Safety Engineering and Environmental Department (BSEED) issues trade permits, and its FAQ says plumbing and furnace (mechanical) work need one. The plumbing fee schedule lists water heaters at $44 each plus a $73 non-refundable application fee. A current mechanical fee schedule was not found, so ask BSEED. Homeowners may apply for trade permits on single-family homes they own and occupy, while a contractor is required for multi-family dwellings and commercial property. After the work is done you request an inspection, then a Certificate of Acceptance validates the permit. Cold winters drive equipment here: EIA found furnaces are the main heat in 83% of Michigan homes, and gas heats water in 66%. Warren, Dearborn and the suburban townships each run their own building departments.
Heat pumps are rare in Michigan's housing stock, and most local installs pair one with a gas furnace for the coldest weather. Michigan's HEAR rebates are open to households at or below 150% of area median income, but new income-qualified applications in the Detroit and Warren districts are temporarily unavailable while the program reviews funding. Ask the installer at what outdoor temperature the furnace takes over, and who sets that point.
Permits in Detroit
| Permit for this job | Yes (furnace/mechanical work requires a BSEED trade permit); AC and heat pump not named (source) |
|---|---|
| Fee | Plumbing: water heater $44 each plus $73 non-refundable application fee. Mechanical: current schedule not found (a 2010 form listed 'Homeowner Furnace Installation Permit $148' and 'Alterations to Existing Fuel Burner Furnace Installation $99'). |
| Who can pull it | Homeowner (single-family, owner-occupant with proof of ownership) or licensed contractor; contractor required for 2-family and up |
| Inspection | Yes |
Rebates in Michigan
HEAR: open with limits. HOMES: open with limits. Source: EGLE Materials Management Division, Energy Services, checked October 13, 2026.
What these programs cover, and other states
Other systems in Detroit
Heat pump (ducted, outdoor unit + air handler) cost in other metros
- Grand Rapids, MI
- New York, NY
- Los Angeles, CA
- Chicago, IL
- Dallas, TX
- Houston, TX
- Atlanta, GA
- Washington, DC
Sources
- Detroit BSEED: frequently asked questions
- Detroit BSEED plumbing fee schedule
- Michigan EGLE: Home energy rebate programs
- EIA, 2020 RECS: Highlights for space heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for water heating in U.S. homes by state
- EIA, 2020 RECS: Highlights for air conditioning in U.S. homes by state
- https://training.detroitmi.gov/sites/training.detroitmi/files/2018-05/mechanical_permit_application_-_new_0.pdf
- BLS OEWS May 2025, Detroit-Warren-Dearborn, MI (49-9021 HVAC mechanics and installers)
- DOE Residential CAC & Heat Pumps Direct Final Rule TSD (Dec 2016), Table 8.2.30, split heat pump (2015$; 4-ton interpolated)