Congratulations! You’ve already decided that you’re going to take the leap into buying rental property. But do you know where you want to buy?
Investing in rental property should be one that is ultimately profitable and sustainable. Knowing where to buy is a huge contributing factor when solidifying your decision. Three major components of a great place to buy rental property are:
- Affordability This is twofold – you want to pay a good price for your rental property, and your tenants should be able to afford to live in (and around) your rental.
- Job Growth Your renters should be able to find work that allows them to pay their rent. Excellent job opportunities are also great reasons for new residents to ground themselves in your chosen city.
- Population Growth Frankly, it isn’t wise to invest where no one is looking for a rental. New residents are likely to rent before they buy if only to get to know the area better. Don’t rule out all of those who prefer to rent (rather than buy) either.
There are plenty of American cities that fit the bill. We selected our top 10 based on multiple sources (linked throughout), but predominantly from the Emerging Trends in Real Estate Report presented by the Urban Land Institute and Price Waterhouse Cooper, and U.S. Census Data.
Tampa, FL
Overview: Situated on Central Florida’s Gulf Coast, Tampa contains a booming market for rentals. According to CoStar Group, “Tampa Bay apartments fill almost as fast as they’re finished.” Tampa is also listed as number 19 of 78 markets to watch for overall real estate prospects. Affordability: Regularly recognized for its low cost of living and comparatively high salaries. The median home price is $183,592. Job Growth: Ranked number 37 out of 182 of WalletHub’s best cities for jobs. Population Growth: Listed number 51 of the 200 most populous U.S. cities as well as number 19 out of 66 of WalletHub’s fastest-growing large cities.
Orlando, FL
Overview: Although Orlando is best known as a tourist destination for theme parks, the city itself is flourishing. A growing technology sector and large influx of millennial residents have contributed to Orlando’s status as a burgeoning metropolis. Affordability: With a median home price of $213,717 and significant growth overall, Orlando is consistently noted as a best city to own investment property. Job Growth: Recognized as number three out of 182 of WalletHub’s best cities for jobs. Population Growth: Ranked number 71 of the 200 most populous U.S. cities in addition to number 21 of 249 of WalletHub’s fastest-growing mid-sized cities.
Atlanta, GA
Overview: Known as the Capital of the New South, Atlanta is the economic, cultural, and transportation hub of the Southeast. Atlanta is booming with plenty of economic opportunity and rapid population growth.
Affordability: Walletwyse declared Atlanta the most affordable big city in 2018. The median home price is $192,892. Job Growth: WalletHub ranked Atlanta number 18 out of 182 best cities for jobs. Population Growth: WalletHub also recognized Atlanta as number 10 out of 66 fastest growing large cities. Atlanta is listed as number 38 out of the 200 most populous U.S. cities.
Las Vegas, NV
Overview: While the city is famous for gaming and tourism, Las Vegas has drawn growth all around—in population, employment, and home values. Numerous museums, expansive parks, and exciting festivals and events make Las Vegas a great place to not only live, but to also own rental property. Affordability: Las Vegas is often acknowledged as among the most affordable cities to live in the United States. The median home price is $232,533. Job Growth: Ranked number 114 of 182 best cities for jobs by WalletHub. Population Growth: Listed as number 16 of 66 of WalletHub’s fastest-growing cities. Las Vegas is also recognized as number 28 of the 200 most populous U.S. cities.
Phoenix, AZ
Overview: Known as the Valley of the Sun, Phoenix boasts an average of 299 sunny days per year (compared to the national average of 205). The city’s climate serves as a draw for many new residents, contributing to both population and economic growth in addition to housing affordability. Affordability: Inc.com lists Phoenix as the number one major U.S. city where you can live well on less than $50,000 a year. Phoenix’s median home price is $235,333. Job Growth: Ranked as number 53 of 182 best cities for jobs by WalletHub. Population Growth: Recognized as number 18 of 66 fastest-growing cities by WalletHub. Phoenix is also the 5th most populous U.S. city.
Boise, ID
Overview: Idaho’s capital city, Boise, draws residents for its affordable housing, economic growth, and high quality of life. Boise residents enjoy ample recreational opportunities as well as a charming, vibrant downtown area. Affordability: Recognized by U.S. News and World Report as a best affordable place to live in the U.S. The median home price is $221,475. Job Growth: Ranked number 30 of WalletHub’s 182 best cities for jobs. Population Growth: Listed as number 94 of 249 of WalletHub’s fastest-growing midsize cities. Boise is also number 99 of the 200 most populous U.S. cities.
Houston, TX
Overview: Houston has been booming, attracting residents for its many job opportunities, low cost of living, and rich diversity. Houston offers residents all the benefits of metropolitan living at an affordable rate. Affordability: Routinely acknowledged as one of the country’s most affordable cities, Houston touts a median home price of $244,400. Job Growth: Listed as WalletHub’s number 82 of 182 best cities for jobs. Population Growth: Ranked number 42 of 66 fastest growing large cities by WalletHub. Houston is the 4th most populous U.S. city.
Charlotte, NC
Overview: Known as the Queen City, Charlotte prides itself on offering something for everyone—from ample outdoor activities to excellent cultural amenities and everything in between. Residents flock to Charlotte for its many high-paying job opportunities, low cost of living, and exceptional modern developments in historic neighborhoods. Affordability: U.S. News and World Report recognizes Charlotte as one of the best most affordable places to live in the U.S. The median home price is $200,942. Job Growth: Ranked by WalletHub as number 102 of 182 best cities for jobs. Population Growth: Listed as number 17 of the 200 most populous U.S. cities. Charlotte is also the 4th fastest growing large city per WalletHub.
Raleigh/Durham, NC
Overview: Raleigh, Durham, and Chapel Hill are regarded as the Research Triangle for housing numerous prestigious universities—Duke University, UNC Chapel Hill, and North Carolina State University. These universities provide ample job opportunities in addition to an educated workforce, which draws many companies to the area as well. Affordability: Raleigh/Durham’s median home price is $227,814. The area is also considered a best affordable place to live in the U.S. by U.S. News and World Report. Job Growth: Raleigh and Durham are listed among the best cities for jobs by WalletHub, coming in at numbers 63 and 93 out of 182, respectively. Population Growth: Raleigh is ranked number 15 of 66 fastest growing large cities by WalletHub. Durham is listed as number 49 of 249 fastest growing midsize cities, also by WalletHub. Raleigh is number 41 and Durham is 76 out of the 200 most populous U.S. cities.
Minneapolis, MN
Overview: One half of the Twin Cities, Minneapolis offers residents an exciting metropolitan atmosphere within minutes of endless outdoor activities. New residents continue to move to Minneapolis for its diverse economy, high-paying job opportunities, great transit system, and overall high quality of life. Affordability: Listed as number 9 of the 25 best affordable places to live in the U.S. by U.S. News and World Report. Minneapolis’ median home price is $237,367. Job Growth: Recognized as the 12th best city for jobs by WalletHub. Population Growth: Ranked number 29 of 66 fastest growing large cities by WalletHub. Minneapolis is also number 46 of the 200 most populous U.S. cities.
These are just 10 of the top cities in the United States for buying rental property. It’s always recommended to purchase a rental property close to where you already live. Managing a local property is much easier than managing a property from afar. Once you've bought the rental property, it's time to advertise! When you list your rentals with Apartments.com, your property will show up on our twelve network sites, with millions of monthly visitors.
If none of the aforementioned cities are close to you, consider researching local areas using the same criteria: affordability, job growth, and population growth.
