Real estate prices are rising across the country. Finding that home to turn into a rental property may have you looking outside your city. RentRange®, a single-family rental market data company, released a study identifying the top 25 cities in America to invest in rental homes.
The study analyzed the average rental rate increase and average gross yield (income return from an investment prior to operating costs) for single-family homes for the first quarter of 2016 (compared to Q1 of 2015). Data was collected on approximately 250,000 homes; sources include multiple listing services, property managers, landlords and listing web sites.
Florida accounted for 25 percent of the study’s top finishers, with Gainesville recommended for possible opportunities for “both double digit rental price increases and strong average first quarter yields”. California continues to be a top performer, despite rising home prices. Three new rental property markets made the list: Naples-Marco-Island (FL), Syracuse (NY), and Milwaukee-Waukesha-West Allis (WI). RentRange expects to see more New York and Midwest cities make the list.
“The single-family rental market across the U.S. continues to offer significant opportunity for investors,” said Wally Charnoff, CEO of RentRange. “The robust data available today empowers even non-institutional investors to analyze geographies and select the investment locations throughout the U.S. that are most opportune, as opposed to being limited to their own backyard.”
The median home prices of these cities range from a mere $89,700 in Shreveport, LA, to a whopping $930,000 in Santa Barbara, CA. So whatever your budget, there’s a rental property with potential to earn income and gain value.
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