Best zip codes to invest in property revealed

by Steve Randall07 Aug 2017
Property investors should head to Florida for the best returns on their cash according to a new analysis.

Online property investment management firm HomeUnion reveals that the Sunshine State is home to three of the top five zip codes for the best returns on home investments.

The analysis looks at 20 metros and assesses the attractiveness of investing in single-family rentals (SFRs) over 5 years. It also looks at the quality of schools in the area due to their impact on the housing market.

“Typically, SFRs in areas with good schools have been attractive to long-term investors, though those areas have been more challenging to locate for remote investors in today’s heated housing market,” explained Steve Hovland, director of research for HomeUnion.

Florida’s Hamptons at Boca Raton in the West Palm Beach tops the best-investment ranking, specifically the 33434 zip code, which offers an annualized total return of 8.1%, well above the 6.1% of the second-placed 19035 zip code of Gladwyne, Philadelphia.

Here’s the entire top 20:
 

Zip Code

Submarket

Metro Area

Annualized Total Return*

School Rating

33434

Hamptons at Boca Raton, Fla.

West Palm Beach

8.1

87.9

19035

Gladwyne, Penn.

Philadelphia

6.9

86.9

48322

West Bloomfield Township, Mich.

Detroit

6.9

74.4

33158

Palmetto Bay, Fla.

Miami

6.8

83.9

33327

Weston, Fla.

Fort Lauderdale, Fla.

6.6

70.5

37062

Fairview, Tenn.

Nashville

6.5

70.6

66223

Overland Park, Kan.

Kansas City

6.2

97.4

60016

Des Plaines, Ill.

Chicago

6.0

76.4

45255

Forestville/Cherry Grove

Cincinnati

5.9

75.7

30078

Snellville, Ga.

Atlanta

5.8

72.5

97224

King City, Ore.

Portland, Ore.

5.8

81.9

34677

Oldsmar, Fla.

Tampa

5.7

78.6

44023

Chagrin Falls, Ohio

Cleveland

5.6

70.8

75022

Flower Mound, Texas

Dallas

5.6

84.0

77059

Clear Lake City, Texas

Houston

5.6

76.0

85259

North Scottsdale, Ariz.

Phoenix

5.5

88.0

63043

Maryland Heights, Mo.

St. Louis

5.5

71.9

73003

Edmond, Okla.

Oklahoma City

5.4

90.0

91602

North Hollywood, Calif.

Los Angeles

5.4

71.4

46280

North Indianapolis

Indianapolis

5.4

71.9

*Total return includes projected appreciation and cash flow based on HomeUnion’s proprietary underwriting methodology. Sources: HomeUnion Research Services, Maponics


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