Top 10 Rental Markets in the US - Do you Invest in these markets and why (or why not)?

12 Replies

According to USA Today...below are the top 10 rental real estate markets:

(They looked at annual gross rental yields from RealtyTrac as their basis)

10. Hernando County, Florida

  • Annual gross rental yield: 17.29%
  • Vacancy Rate: 5.1%
  • 9. Pasco County, Florida

  • Annual gross rental yield: 17.30%
  • Vacancy Rate: 8.9%
  • 8. Columbia County, Florida

  • Annual gross rental yield: 18.42%
  • Vacancy Rate: 11.3%
  • 7. Wayne County, Michigan

  • Annual gross rental yield: 19.88%
  • Vacancy Rate: 8.9%
  • 6. Spalding County, Georgia

  • Annual gross rental yield: 20.35%
  • Vacancy Rate: 12.3%
  • 5. Putnam County, Florida

  • Annual gross rental yield: 22.63%
  • Vacancy Rate: 6.3%
  • 4. Howard County, Indiana

  • Annual gross rental yield: 24%
  • Vacancy Rate: 6.6%
  • 3. Duplin County, North Carolina

  • Annual gross rental yield: 24.4%
  • Vacancy Rate: 8.8%
  • 2. Clayton County, Georgia

  • Annual gross rental yield: 26.88%
  • Vacancy Rate: 16.9%
  • 1. Edgecombe County, North Carolina

  • Annual gross rental yield: 41.57%
  • Vacancy Rate: 11.1%

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    I think the whole central part of the USA from Chicago to Texas (Midwest and South) is a great area for rentals - that is what I have always invested in. So much more for the money!

    Florida is definitely seeing a good market for lease options and subject to.

    Thx for sharing~ This was the article that I missed a few weeks back on biggerpockets and couldn't find. 

    BTW, I've partnered up with a friend to invest in #2; Clayton County, Georgia.

    Clayton County, GA was the first county I invested in GA back in 2012. At that time, you can pick up 2600 sq ft, 2 storey 4/3, double garage, under 6 years old for under $55K.  Spent under $10K for cosmetic touch up Rent $985 in 2012 & now $1125.

    Thanks for sharing Wendell.....great list.  It's interesting that many of them have above average vacancy rates compared to the average for the US.

    Originally posted by @Justin Simpkins :

    Mostly SE states. Anybody have any theories? 

     Probably because there are JOBS while the cost of living is relatively low compared to the coasts...which means lower property values while having high rents which equals GREAT returns for landlords.

    Account Closed 

    After 800+ deals I've never invested in any of those top 10s.

    A few points:

    1.  The Top 10 this or that changes nearly every day.

    2.  There are more than 10 places that are great in which to invest.

    3.  Start with the coasts.

    4.  Then add most large metro areas.

    5.  Then add Sunbelt areas.

    6. Then add Washington DC and all state capitals (lots of government workers and contractors.)

    7.  Then add College and University towns.

    8.  Then add areas with growing populations, jobs and economies.

    9.  That covers almost the entire country.

    10  You can make it in real estate just about anywhere.

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