“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,” said HomeUnion CEO Don Ganguly. “Natrually, macro-economic factors such as low 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.”
To create the list, HomeUnion looked at non-owner occupied properties and considered a combination of year-over-year job growth, median prices of investment properties, housing affordability and gross rental yield.
Charlotte, N.C., topped the list. It had the highest job growth of any of HomeUnion’s top 10 city, and the third-best job-growth rate of the top 55 U.S. metro areas.
HomeUnion’s top SFR investment markets
- Nashville-Davidson-Murfreesboro-Franklin, Tennessee
- Milwaukee-Waukesha-West Allis, Wisconsin
- Indianapolis-Carmel-Anderson, Indiana
- Tampa-St. Petersburg-Clearwater, Florida
- Birmingham-Hoover, Alabama
- Jacksonville, Florida
- Cincinnati, Ohio-Kentucky-Indiana
- Baltimore-Columbia-Towson, Maryland
- Orlando-Kissimmee-Sanford, Florida
- Charlotte-Concord-Gastonia, North Carolina-South Carolina
Want to buy an affordable rental property? HomeUnion, an online real estate investment management firm, has just released its latest list of the top 10 U.S. markets for affordable rental properties.