Homeownership is a perpetual hot topic. We all know someone who is in the process of buying a home, saving for a home, losing a home. Every day there are new articles and statistics declaring the improvement, decline or stagnation of the housing market. As homeownership remains an uncertainty for millions of Americans, renting has grown in preference.
RentRange, a Denver-based rental market intelligence provider, has compiled a list of the eight best American cities for rental investment. RentRange surveys “250,000 single-family houses per month from a variety of contractual sources, including multiple listing services, property managers, landlords and listing web sites. Yields are derived from RentRange’s proprietary automated valuation model.”
Top cities for rental investment, with their average third-quarter yield:
- Birmingham-Hoover, Alabama 14.8 percent
The increase in rental rates coupled with the city’s affordability created the highest return of investment (ROI) in the country.
- Houston-Sugar Land-Baytown, Texas 14 percent
Rising home prices meant a huge ROI for rental investors.
- Dallas-Fort Worth-Arlington, Texas 13.4 percent
Investors here benefitted from rising home prices and hefty job growth.
- Kansas City, Missouri/Kansas 12.7 percent
Not thought of as a buzzing housing market, Kansas City is delivering handsome ROIs.
- Columbus, Ohio 12.4 percent
Homes are being purchased at a rapid rate, and the rental sector is vibrant with activity from people who aren’t buying them.
- Tulsa, Oklahoma 11.7 percent
Despite its modest population, Tulsa is generating impressive ROIs.
- Tampa-St. Petersburg-Clearwater, Florida 11.5 percent
The robust rise in rental rates means an equally hearty ROI for investors.
- Orlando-Kissimmee-Sanford, Florida 10.6 percent
These cities enjoy a stable influx of newcomers, and as a result a busy rental market.