I recently moved to a nearby suburb of Detroit. Prior to this I had lived in Detroit for most of my life. I spent the last three years in Corktown. If you are going to DEMF and need a hotel you want to be staying at the Leland. It is downtown and there are two clubs that the DEMF crowd frequents attached to it. It is certainly not the most luxurious but it would be a good time. You'll be close to any after hour spots and people who will know where you need to be after hours.
There is also a hostel in Corktown. I don't know much about it only that it opened last year.
5/24-5/26 - EDC Chicago
6/18 - Giraffage
6/28 - Richie Hawtin
7/5-7/7 - Wavefront Music Festival
7/19 - Pearl Jam @ Wrigley
7/22 - Jay-Z & JT
8/2-8/4 - Lollapalooza
8/30 - 9/1 - North Coast Music Festival