Does any US market meet the 2% rule?

Question

Does anyone know of a current US residential housing market in which the monthly rent equals 2% of the property value?

Alex Khan · Answer

Detroit Michigan!

Dirk Gesink · Answer

Thank you to all for your responses.  I am orignanally from Michigan and still have family in the state so I wil check into the Detroit market.

Gary Carver · Answer

@Dirk Gesink. Yes Detroit market .

Drew Sygit · Answer

@Dirk Gesink: as already noted by others, the Detroit market:)

Patrick Strain · Answer

Honestly, I find that I get better returns in rural areas. I'm not an expert, I buy only properties which are local to me because I'm a hands on person. I've never had a property which has produced less than 2%. My main property is producing around 5%. Markets vary widely.

Travis Biziorek · Answer

2% is pretty much my target for my Detroit properties. I'll go slightly under that (like 1.8%), but my duplexes generally do even more (closer to 3%).

Wendy Patton · Answer

there are some deals that do about 2% in Metro Detroit - not usually on the MLS but mostly through wholesalers at this point

Charlie MacPherson · Answer

@Dirk Gesink Yes - I'm seeing it here in central and northern Maine.  Costs are quite a bit lower than the south shore of Mass where I recently moved from.  There we occasionally saw 1% and on the south coast could sometimes see 2%, but those were in higher crime areas.  Boston proper and most areas inside RT 128 were well under 1% - commonly 0.5% - 0.8%.I'm seeing much better numbers here, and unlike Mass where a "professional (deadbeat) tenant" could tie you up in court for a year, in Maine I'm hearing that the absolute worst case scenario is 45 days.

Caleb Heimsoth · Answer

@Dirk Gesink. Yes plenty.  I’ve gotten a 3 percent deal

Aaron K. · Answer

Yes but, often the properties require so much work they aren't worth buying or they are in an area that either has zero/ negative appreciation or they are in less than desirable areas.

Does any US market meet the 2% rule?

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