Best Places to Snag a Single-Family Rental

February 26, 2016

Many markets are still seeing a boom in the rental sector, which is drawing investors to turn single-family homes into rentals. Which markets offer some of the best prospects for investors?

HomeUnion, an online real estate investment management company, ranked metros by cap rates (the relationship between an investment property’s net operating income – rents minus expenses – and the market value of the property).

The following are the top 10 single-family rental investment markets (including the cap rate), according to HomeUnion:

  1. Memphis: 7.3%
  2. Oklahoma City: 6.9%
  3. Pittsburgh: 6.4%
  4. Cincinnati: 6.4%
  5. Houston: 6.1%
  6. Indianapolis: 6%
  7. Cleveland: 5.9%
  8. Baltimore: 5.9%
  9. Milwaukee: 5.9%    
  10. Tampa: 5.9%

Source: “Here are the 10 Top and Bottom Investment Markets for Single-Family Rentals,” HousingWire (Feb. 23, 2016)