The Top ZIP Code for Real Estate Investors in Every State

I loved the reader response to my recent post about the top cash-flowing markets in each state. One of the common themes? You want more specificity. Which makes sense: Investors are all about the numbers—and the more granular, the better. To help you even more, I put together this new list showing the top ZIP code in each state.

Unlike the previous study, this one is a bit more subjective. Some things to keep in mind:

For data accuracy, I try to limit my findings to markets with a minimum of 50 rent listings and 50 property sales per month.
Some markets lag behind in reporting, so we don’t have data for June or July yet. I omitted those markets from consideration.
I didn’t use one metric as the guiding light here. Instead, I looked at three metrics, and looking for balance among all of them: property appreciation, rent appreciation, and rent-to-price ratio.
Sorry, West Virginia, I really tried. I just could not find a good investing ZIP code.

Understand that the “top” or “best” ZIP codes in any state is a subjective evaluation. This list is just my personal picks for the top ZIP code in each market.

Here are some highlights:

Richmond, VA: 23224

Located across the James River from downtown Richmond, this ZIP includes gentrifying Old Town Manchester. Easy river, trail, and city access make 23224 a hot spot for rental-minded investors. Rents have increased an average of 8.9 percent annually, and the area sports an impressive 48 percent year-over-year property appreciation. The result? A whopping 0.87 percent rent-to-price ratio.

Casa Grande, AZ: 85122

This sleepy mid-sized town is less than an hour’s drive south of Phoenix—and a top real estate performer. Median sales have increased from $160,000 to $205,000 since 2017. That’s impressive, and doubly so when you look at rents. In the same time period, median rent has increased 22.7 percent, from $725 to $1,338. Overall, this Arizona town’s rent-to-price ratio is 0.65 percent.

Essex, VT: 05452

Close to both Burlington and Lake Champlain, it’s no surprise that Essex, VT, should attract investor interest. Median rents have increased from $1,400 to $1,600 since 2017, and the area is seeing a modest year-over-year property appreciation rate of one percent. Despite a year-over-year rent appreciation dip and rental depreciation, it still sports a 0.53 percent rent-to-price ratio.

Portland, OR: 97220

Want to get in on the hot Portland market? This neighborhood in the city’s northeast might be a good entry. In 2020, median sales were a modest (for the area) $360,000, with nine percent year-over-year property appreciation and 43 percent year-over-year rental appreciation. Easy-access natural areas—not to mention a short trip to the airport—can help attract buyers and renters.

Manhattan, KS: 66502

The college market can be a goldmine for savvy investors. Kansas’s “Little Apple” is home to Kansas State University, and while median sales prices may be slightly decreasing, the median rent has stayed relatively stable—which could make this a great opportunity for a fabulous deal in the Flint Hills. Expect a rent-to-price ratio of 0.45 percent.

Ready to find out the best ZIP code in your state? Here’s our list.

You can also download the raw data (password: insights) if you want to run your own analyses.

Do you agree? Or do you have a different idea about the best place to invest in your state?

Let us know in the comments below.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.