At least in my high school, you really didn’t apply to Michigan unless you knew with almost certainty that you were going to get in. Otherwise, you applied to State, Eastern, and Wayne (and if you’re on the other side of the state, swap out Western for Eastern and Wayne).
Michigan does a pretty poor job of reaching out to low income students and explaining that the sticker price need not scare you. So it’s really no wonder that only approximately 11% of the incoming freshmen come from households of 50k or less.
I’d bet that if Michigan reached out to these lower income students and schools in a meaningful way, you’d see the numbers of applicants shoot up. But, this all assumes that Michigan wants socioeconomic diversity (which I doubt).