The best places to invest in rental property

Dennis Norman, St Louis REALTORLas Vegas, Nevada is the best place in America to buy at rental property at this time according to the newly released “HomeVestors-Local Market Monitor Best Markets to Invest in Rental Property” report. St. Louis came in at number 50 and Kansas City at number 37.

According to the report, approximately 14 percent of the single family homes in the U.S. are being operated as rental properties. The report ranks locations based upon the “expected future performance of homes maintained as rental properties.” The report focuses on single-family homes maintained as rentals and not condominiums or multi-family’s. The ranking is based on three-year forecasts of home prices (this is pretty much a wild card in this market) and the gross rents resulting in a risk-return premium which is then compared with the national average. For the 3rd quarter of 2011, the national average risk-return premium was 5.4 percent. The rates shown below represent how much above the national average that city is.

HomeVestors-Local Market Monitor Best Markets to Invest in
Rental Property – Top 20 Markets
Market Q3
Ranking
Q2
Ranking
Change
Since Q2
Risk-Return Premium (+/-)
Relative to 5.4% National Average
Las Vegas, Nevada 1 1 NA +5.0% (above national average)
Detroit, Michigan 2 2 NA +4.3%
Orlando, Florida 3 4 +1 +3.1%
Warren, Michigan 4 3 -1 +3.1%
Ft. Lauderdale, Florida 5 8 +3 +2.9%
Bakersfield, California 6 5 -1 +2.7%
Tampa-St. Petersburg, Fla. 7 6 -1 +2.6%
Phoenix, Arizona 8 7 -1 +2.5%
Stockton, California 9 10 +1 +2.4%
West Palm Beach, Florida 10 18 +8 +2.2%
Atlanta, Georgia 11 16 +5 +2.1%
Bradenton-Sarasota, Florida 12 11 -1 +2.1%
Rochester, New York 13 9 -4 +2.0%
Fort Worth, Texas 14 12 -2 +1.9%
Dallas, Texas 15 13 -2 +1.8%
Syracuse, New York 16 14 -2 +1.7%
Jacksonville, Florida 17 20 +3 +1.7%
Fresno, California 18 17 -1 +1.5%
Tucson, Arizona 19 21 +2 +1.5%
Memphis, Tennessee 20 27 +7 +1.4%

Source: HomeVestors-Local Market Monitor

Commenting on the local markets and the ranking overall, Ingo Winzer, president and founder of Local Market Monitor, Inc., said:

“A sharper than expected fall in recent home prices, which are down almost 5% in the last year, has led us to lower expectations for future prices. At the same time, however, higher inflation and slow but steady job growth should boost future rents. The desirability of investing in rental properties is therefore positive. In fact, the national average risk-return premium has ticked up ever so slightly from 5.3% to 5.4% since last quarter.”

“The Future Relative Returns for large markets suggest that Las Vegas and Detroit are still very risky, highly speculative markets that could have a big payoff only if the local economy rebounds faster than we expect. Safer but still advantageous markets include Dallas, Fort Worth and Atlanta. The most interesting markets are in Florida and Arizona, where home prices have still not bottomed out but rents will eventually be supported by renewed population growth; investors in these markets must take a long-term view but will be rewarded if they can tolerate high vacancies for a few years.”

David Hicks, co-president of HomeVestors of America, Inc., added: “What we’re seeing in the marketplace reinforces the results of the latest ranking. Our franchises in West Palm Beach, Atlanta, Phoenix, Dallas, Fort Worth and Tucson all report a marked increase in investor interest in rental property opportunities. Investors are recognizing the potential for homes in these markets to produce above-average financial returns.”

HomeVestors-Local Market Monitor Best Markets to Invest in
Rental Property – Top 100 Markets
Rank Market Risk-Return Premium (+/-) Relative
to 5.4% National Average
1 Las Vegas, Nevada +5.0% (above national average)
2 Detroit, Michigan +4.3%
3 Orlando, Florida +3.1%
4 Warren, Michigan +3.1%
5 Ft. Lauderdale, Florida +2.9%
6 Bakersfield, California +2.7%
7 Tampa-St. Petersburg, Florida +2.6%
8 Phoenix, Arizona +2.5%
9 Stockton, California +2.4%
10 West Palm Beach, Florida +2.2%
11 Atlanta, Georgia +2.1%
12 Bradenton-Sarasota, Florida +2.1%
13 Rochester, New York +2.0%
14 Fort Worth, Texas +1.9%
15 Dallas, Texas +1.8%
16 Syracuse, New York +1.7%
17 Jacksonville, Florida +1.7%
18 Fresno, California +1.5%
19 Tucson, Arizona +1.5%
20 Memphis, Tennessee +1.4%
21 Wichita, Kansas +1.4%
22 Riverside-San Bernardino, California +1.3%
23 Grand Rapids, Michigan +1.3%
24 Miami, Florida +1.3%
25 Dayton, Ohio +1.3%
26 Omaha, Nebraska +1.2%
27 Houston, Texas +1.2%
28 Sacramento, California +1.2%
29 Tulsa, Oklahoma +1.1%
30 Akron, Ohio +1.0%
31 El Paso, Texas +1.0%
32 Minneapolis-St. Paul, Minnesota +1.0%
33 Austin, Texas +1.0%
34 Cleveland, Ohio +1.0%
35 Toledo, Ohio +0.9%
36 Colorado Springs, Colorado +0.8%
37 Kansas City, Missouri +0.8%
38 Oklahoma City, Oklahoma +0.8%
39 San Antonio, Texas +0.7%
40 Buffalo, New York +0.7%
41 Gary, Indiana +0.7%
42 Camden, New Jersey +0.6%
43 Columbia, South Carolina +0.6%
44 Little Rock, Arkansas +0.6%
45 New Haven, Connecticut +0.6%
46 Edison, New Jersey +0.5%
47 Columbus, Ohio +0.5%
48 McAllen, Texas +0.5%
49 Chicago, Illinois +0.4%
50 St. Louis, Missouri +0.4%
51 Albuquerque, New Mexico +0.3%
52 Richmond, Virginia +0.3%
53 Indianapolis, Indiana +0.3%
54 Poughkeepsie, New York +0.3%
55 Tacoma, Washington +0.2%
56 Cincinnati, Ohio +0.2%
57 Wilmington, Delaware +0.2%
58 Denver, Colorado +0.2%
59 Nashville, Tennessee +0.2%
60 Greensboro, North Carolina +0.2%
61 Albany, New York +0.2%
62 Portland, Oregon +0.2%
63 Allentown, Pennsylvania +0.1%
64 Hartford, Connecticut +0.1%
65 Pittsburgh, Pennsylvania +0.1%
66 Baton Rouge, Louisiana +0.1%
67 Raleigh, North Carolina 0.0% (equivalent to national average of 5.4%)
68 Charlotte, North Carolina 0.0% (equivalent to national average of 5.4%)
69 Springfield, Massachusetts -0.1% (below national average)
70 Bridgeport, Connecticut -0.1%
71 Virginia Beach, Virginia -0.1%
72 Knoxville, Tennessee -0.2%
73 Louisville, Kentucky -0.2%
74 Birmingham, Alabama -0.2%
75 Washington, DC -0.2%
76 Philadelphia, Pennsylvania -0.2%
77 Milwaukee, Wisconsin -0.2%
78 New Orleans, Louisiana -0.2%
79 Seattle, Washington -0.3%
80 Salt Lake City, Utah -0.4%
81 Baltimore, Maryland -0.4%
82 San Diego, California -0.4%
83 Oxnard, California -0.5%
84 Boston, Massachusetts -0.6%
85 Greenville, South Carolina -0.6%
86 Worcester, Massachusetts -0.6%
87 Charleston, South Carolina -0.7%
88 Oakland, California -0.7%
89 Lake County, Illinois -0.8%
90 Providence, Rhode Island -1.0%
91 Nassau-Suffolk, New York -1.0%
92 Anaheim, California -1.2%
93 Los Angeles, California -1.3%
94 Peabody, Massachusetts -1.4%
95 San Jose, California -1.5%
96 Honolulu, Hawaii -1.5%
97 Newark, New Jersey -1.6%
98 Bethesda, Maryland -1.7%
99 New York City, New York -1.9%
100 San Francisco, California -2.4%

Source: HomeVestors-Local Market Monitor

Print Friendly, PDF & Email

46 comments to The best places to invest in rental property

  • … [Trackback]

    […] There you will find 3114 additional Info to that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • … [Trackback]

    […] Find More Information here to that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • … [Trackback]

    […] There you will find 11824 more Information on that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • … [Trackback]

    […] Find More to that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • Thanks , I have recently been looking for information approximately this
    subject for a while and yours is the best I’ve found out so far.
    However, what about the bottom line? Are you positive
    concerning the source?

  • It’s а shame yoս don’t have a donate button! Ι’d ϲertainly donate to thіѕ excellent blog!
    I guess for now i’ll settle for bookmarking and adding ʏour RSS feed to
    my Google account. I lоoҝ forward to brand neww
    updates and ԝill talk about this site ԝith my Facebook group.

    Talk ѕoon!

  • Tһank yoս for tһe auspicious writeup. Іt in fɑct waѕ a
    amusement account іt. Looк advanced tο far added agreeable fгom you!

    However, hoᴡ сould we communicate?

  • What’s up, I desire to subscribe for this web site to take newest updates,
    so where can i do it please assist.

  • This is the right web site for anybody who would like to understand this topic.
    You know so much its almost hard to argue with you (not that I actually would want to…HaHa).
    You certainly put a fresh spin on a topic that’s been written about for years.
    Excellent stuff, just excellent!

  • Hello there! Would you mind if I share your blog with my zynga group? There’s a lot of folks that I think would really enjoy your content. Please let me know. Thanks

  • … [Trackback]

    […] Find More on on that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • … [Trackback]

    […] There you can find 19789 additional Info on that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • … [Trackback]

    […] Find More to that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • What’s up, I check your new stuff daily. Your humoristic style is awesome, keep it up!

  • Wow, marvelous blog layout! How long have you
    been blogging for? you made blogging look easy.
    The overall look of your website is wonderful, let alone the content!

  • … [Trackback]

    […] Info to that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • Hello to all, since I am really eager of reading this weblog’s post to
    be updated daily. It includes pleasant information.

  • … [Trackback]

    […] There you can find 74625 additional Information on that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • You’re an extremely beneficial internet site; couldn’t make it without ya!|

  • Thank you, I have just been looking for information approximately this subject for a long time and yours is the best I’ve came upon till now. However, what about the conclusion? Are you sure concerning the supply?

  • Hey, you used to write fantastic, but the last several posts have been kinda boringK I miss your tremendous writings. Past several posts are just a little out of track! come on!

  • … [Trackback]

    […] Read More to that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • Very good site you have here but I was wondering if you knew of any community forums that cover the same topics talked about here? I’d really like to be a part of group where I can get feed-back from other knowledgeable individuals that share the same interest. If you have any recommendations, please let me know. Cheers!

  • I cling on to listening to the rumor speak about getting free online grant applications so I have been looking around for the finest site to get one. Could you advise me please, where could i acquire some?

  • Outstanding post, I believe people should larn a lot from this web site its really user genial.

  • I do enjoy the way you have presented this particular issue and it does give us a lot of fodder for thought. On the other hand, coming from just what I have personally seen, I really hope as the remarks pack on that folks stay on point and not get started on a tirade involving the news du jour. Anyway, thank you for this outstanding piece and though I can not agree with the idea in totality, I respect your perspective.

  • … [Trackback]

    […] Read More Info here on that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

  • F*ckin’ awesome things here. I’m very glad to see your post. Thanks a lot and i’m looking forward to contact you. Will you kindly drop me a mail?

  • Hello, you used to write fantastic, but the last few posts have been kinda boring… I miss your super writings. Past several posts are just a little bit out of track! come on!

  • Have you ever thought about including a little bit more than just your articles? I mean, what you say is important and everything. But think of if you added some great visuals or video clips to give your posts more, “pop”! Your content is excellent but with images and videos, this website could undeniably be one of the best in its niche. Fantastic blog!

  • Its great as your other content : D, appreciate it for posting. “Even Albert Einstein reportedly needed help on his 1040 form.” by Ronald Reagan.

  • Hiya! I know this is kinda off topic nevertheless I’d figured I’d ask. Would you be interested in trading links or maybe guest writing a blog article or vice-versa? My blog covers a lot of the same topics as yours and I feel we could greatly benefit from each other. If you might be interested feel free to shoot me an email. I look forward to hearing from you! Terrific blog by the way!

  • Thanks for some other informative blog. Where else may I am getting that kind of information written in such a perfect way? I’ve a project that I’m simply now working on, and I have been on the glance out for such info.

  • Hi , I do believe this is an excellent blog. I stumbled upon it on Yahoo , i will come back once again. Money and freedom is the best way to change, may you be rich and help other people.

  • I admire your work, regards for all the good content.

  • Wonderful beat ! I wish to apprentice whilst you amend your web site, how could i subscribe for a blog website? The account aided me a appropriate deal. I have been tiny bit acquainted of this your broadcast offered brilliant clear idea

  • What’s Happening i am new to this, I stumbled upon this I have found It absolutely helpful and it has helped me out loads. I hope to contribute & aid other users like its aided me. Good job.

  • Pretty! This was a really wonderful post. Thank you for your provided information.

  • you’re really a good webmaster. The website loading speed is amazing. It seems that you’re doing any unique trick. Furthermore, The contents are masterpiece. you have done a magnificent job on this topic!

  • Thank you for another excellent article. Where else could anyone get that type of info in such a perfect manner of writing? I’ve a presentation next week, and I am at the look for such information.

  • I cling on to listening to the news lecture about getting free online grant applications so I have been looking around for the top site to get one. Could you tell me please, where could i find some?

  • You could definitely see your enthusiasm within the work you write. The world hopes for even more passionate writers such as you who aren’t afraid to mention how they believe. Always go after your heart.

  • I have not checked in here for some time as I thought it was getting boring, but the last few posts are great quality so I guess I will add you back to my daily bloglist. You deserve it my friend :)

  • I precisely needed to say thanks yet again. I am not sure the things that I could possibly have done in the absence of the tricks discussed by you directly on my concern. It seemed to be a frustrating problem in my position, but witnessing the very expert tactic you solved the issue took me to cry for delight. I’m just happier for your service as well as hope you are aware of a great job you’re accomplishing instructing people today via your blog. Probably you’ve never encountered any of us.

  • Hello.This article was really remarkable, particularly since I was looking for thoughts on this issue last Wednesday.

  • … [Trackback]

    […] Information on that Topic: stlouisrealestatenews.com/real-estate-market/the-best-places-to-invest-in-rental-property/ […]

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>