The rental property market is booming, with investors queuing up to get in on the action. Rental home investors earn a steady income, provided they have a continuous flow of tenants who pay their rent on time. Additionally, several tax write-off regulations mean that landlords can include almost all their expenses as deductibles when filing their taxes.
The advantage of rental property investment is capital growth as property prices in most areas appreciate as time passes. While there is risk associated with the real estate market, it is regarded as a sound financial investment. Here are some of the best US cities to consider buying rental property in.
Colorado Springs, Colorado
While the process of home buying and renting might be grueling, as many people do not reside close to the area and face time constraints, rental agencies offering services in Colorado; Cornerstone, AllCountry, and Everest can definitely ease the process. Choosing expert property managers in Colorado Springs in order to have the matters handled will make your experience as a landlord much more efficient.
According to property management company, A Cut Above Property Management, Inc., the largest market of potential tenants in Colorado Springs is millennials. They favor the lower housing costs, job opportunities, and slower pace of life. Major companies have recognized Colorado as a central location for their headquarters or regional offices.
With a growing jobs market and an average rental price of just over $1,200, Colorado Springs should be a priority for property investors. The city also includes three university campuses meaning that student accommodation is a booming market.
Another one of the best US cities to considering buying rental property in is Memphis, Tennessee. Memphis has a growing population as large companies like FedEx and AutoZone have offices there. As a gateway to Nashville, the home of country music, Memphis is also a popular tourist attraction. Memphis’s hospitality industry has seen significant growth due to its lively nightlife and is expected to pick up again post-coronavirus.
According to Colliers International, rental prices in Tennessee tend to fall quite far beneath the national average, making it an attractive prospect for tenants. The average rental price is just short of $900. Neighborhoods like Southgate, Alcy-Dunn, and Orange Mound are among the city’s least expensive.
Entrepreneurship in the tech industry is another growing market that is attracting property investors and renters. House prices remain favorable for investors.
Tampa Bay, Florida
The Tampa Bay area includes St. Petersburg and Clearwater. The area’s population continues to grow as people move there for job opportunities and a temperate climate.
The average rental prices in Tampa and St. Petersburg are over $1,400, having recently climbed slightly higher than the national median. Clearwater remains just under that average, costing about $1,300. Nearly 50% of residential properties in this area are renter-occupied households.
Aside from its climatic benefits, Tampa boasts beautiful beaches, great golf courses, and culinary delights to suit any palate. Florida living is even more attractive because the state charges no state income tax. The University of South Florida and University of Tampa call the area home, boosting rental property demand for student accommodation.
For those investors looking for a significant pool of renters, Tucson is a viable proposition. Renters occupy about 45% of homes in this city. Average rental prices are marginally below $1,000, far below the national average.
Median home prices in Tucson come in at less than $250,000. Demand tends to outstrip supply, and buyers are advised to work with a reputable real estate agent to help them track down homes for sale and put in early offers.
Renters are attracted to Tucson because of its warm climate, panoramic landscapes, and cowboy culture. The city’s vibe is unique and one that many renters fall in love with, making them want to stay long-term. There is increased demand for rental properties from senior tenants, among the most reliable any landlord could hope for.
El Paso, Texas
The last city on our list of the best US cities to considering buying rental property in is El Paso, Texas. El Paso has a growing rental property market that many investors are eager to take advantage of. Average rental prices in the city are about $800, well below the national median. Renters looking for homes that cost less than $700 should look at neighborhoods like Cedar Grove, Hacienda Heights, Ranchland, Rosedale Farms, and Stiles Garden.
The average El Paso home costs less than $150,000, which is affordable for many new investors. This price is below the national median, and El Paso properties continue to show stable appreciation rates of about 6%.
El Paso has some of the best universities and schools in America. It is regarded as one of the country’s safest and most culturally diverse cities, thanks to its proximity to the Mexican border. Together with its temperate climate and growing jobs market, El Paso is a worthy contender for real estate investors to consider.
Best US Cities to Consider Buying Rental Property – Summary
There are several cities that top the list of the best US cities to considering buying rental property in. If you are in the market for a rental property, be sure to look into Colorado Springs, Memphis, Tampa Bay, Tucson, and El Paso.