Three key indicators determine the best places to buy a rental property: home value, as higher housing prices indicate a strong demand for rental properties; housing price growth, as price increases indicate how much property could appreciate over time; and median rent, which indicates the amount of money tenants are likely to pay each month. Looking at these indicators provided by the National Association of Realtors and Zillow, here are the nine best places to buy a rental property.
Albuquerque, New Mexico
Albuquerque, New Mexico––most commonly known for the Albuquerque International Balloon Fiesta––is one of the best places to buy a rental property. Albuquerque’s average home value is $216,000. With a 7 percent annual price growth and a median rent of $1,324, Albuquerque, New Mexico is an excellent choice.
Home of the Texas Rangers, Arlington, Texas is among the best places to buy a rental property. Arlington’s average home value is $221,000. With a 4.6 percent annual price growth and a median rent of $1,649, Arlington, Texas could have you saying “Howdy!” real soon.
Atlanta, Georgia is known for its rich history and southern hospitality. Atlanta makes the list of best places to buy a rental property because of its unlimited potential. Atlanta’s average home value is $299,300 which is a testament to the tremendous growth it has experienced. Atlanta’s price growth is 3.4 percent now, but it is expected to increase. With a median rent of $1,728, Atlanta is a solid choice when it comes to the best places to buy a rental property.
Known as the largest city in the Sunshine State, Jacksonville, Florida is among the best places to buy a rental property. Jacksonville’s average home value is $195,700. With a substantial 6.2 percent price growth and a median rent of $1,366, Jacksonville is an easy choice.
The windy city is an ideal rental property location. Chicago’s average home value is $249,200 with a 0.6 percent price growth. It’s Chicago’s economy that makes it one of the best places to buy a rental property. Chicago’s median rent is $1,741, which is much lower than several of the country’s biggest cities making it appealing to renters who want to enjoy city-life at an affordable price.
The Buckeye State also makes the list of best places to buy a rental property. Cleveland, Ohio’s average home value is $68,800 and with a staggering 8.8 percent price growth you won’t have any problems renting in a market with a median rent of $909.
Birmingham, Alabama is a hidden gem. Not only does Birmingham have coal, iron ore and limestone, but Birmingham’s low $64,800 average home value ensures your dollar goes further. Birmingham’s price growth of 10.6 percent and $817 median rent lands it on the list of best places to buy a rental property.
Also on the list of best places to buy rental property is Huntsville, Alabama. Only 100 miles from Birmingham, Huntsville’s average home value is $183,400 and its 10.4 percent price growth supports the median rent of $1,261. With Birmingham and Huntsville being so close, you can buy one in each city and scratch Alabama off the list.
Colorado Springs, Colorado
Nestled near Pikes Peak and Garden of the Gods Park, it’s no surprise people flock to Colorado Springs, Colorado making it one of the best places to buy a rental property. Colorado Springs’ average home value is $323,200. Its popularity causes a 7.6 percent price growth and the people of Colorado Springs pay an average of $1,697 for rent.