HomeUnion, an online real estate investment management firm specializing in single-family rental (SFR) properties, has released a new ranking of the top 10 markets in the U.S. where investors can now affordably buy rental properties.
According to HomeUnion, the listing focused exclusively on non-owner occupied properties and used a combination of median prices of investment properties, year-over-year job growth, gross rental yield and housing affordability.
The top 10 SFR investment markets are as follows:
1. Charlotte-Concord-Gastonia, N.C.-S.C.
2. Orlando-Kissimmee-Sanford, Fla.
3. Baltimore-Columbia-Towson, Md.
5. Jacksonville, Fla.
6. Birmingham-Hoover, Ala.
7. Tampa-St. Petersburg-Clearwater, Fla.
8. Indianapolis-Carmel-Anderson, Ind.
9. Milwaukee-Waukesha-West Allis, Wis.
10. Nashville-Davidson-Murfreesboro-Franklin, Tenn.
According to report highlights, Charlotte topped the ranking due to its strong job growth. In fact, Charlotte had the highest job growth rate of any of the top-10 cities and had the third best job-growth rate of the top 55 metropolitan statistical areas.
‘Like any other investment, the focus for SFR investors should be on long-term rate of return, and each of the markets on this list has favorable rental yields, low-cost entry points and solid, long-term economic fundamentals,’ says Don Ganguly, CEO of HomeUnion. ‘Nationally, macro-economic factors, such as lower homeownership rates, are quite favorable for SFR investing, but real estate is still all about location and finding accessible markets that have low entry points, like Cincinnati and Birmingham, or high gross rental yields, like Milwaukee.’