According to a report by Turbo Tenant, a property management portal, there are 31 cities in 20 states, where it is best to invest in rental properties. New York and Ohio tied for the most cities making the list, at three each.
“When identifying the top 31 cities, we looked for a positive ROI and high growth numbers across all data points,” says Sarnen Steinbarth, founder and CEO of TurboTenant. Researchers also factored in employment and population growth, increase in home values, and rental yield when identifying the top places for rental investments.
The Top Ten Cities to Buy Rental Property
Reading, Pa.
- Increase in home values: 11.1%
- Median sales price: $140,000
- Average rent (for a two-bedroom): $957
District Heights, Md.
- Increase in home values: 0.4%
- Median sales price: $252,000
- Average rent: $1,408
Allentown, Pa.
- Increase in home values: 19%
- Median sales price: $145,000
- Average rent: $1,063
East Orange, N.J.
- Increase in home values: 10%
- Median sales price: $273,000
- Average rent: $1,534
Nashua, N.H.
- Increase in home values: 4.5%
- Median sales price: $283,000
- Average rent: $1,524
Cincinnati
- Increase in home values: 3.1%
- Median sales price: $163,000
- Average rent: $1,048
Paterson, N.J.
- Increase in home values: 11.9%
- Median sales price: $268,000
- Average rent: $1,614
New Castle, Del.
- Increase in home values: 8%
- Median sales price: $188,000
- Average rent: $1,884
Rochester, N.Y.
- Increase in home values: 5.6%
- Median sales price: $136,000
- Average rent: $1,126
Hyattsville, Md.
- Increase in home values: 0.4%
- Median sales price: $279,000
- Average rent: $1,982