What is Worcester's Income by Household Type?
This is an interesting graphic I found the other day. If you look closely it shows that Median Household income is Low $48k and Average income is also pretty low for MA at $68k.
The key here is that Median income for Married Families is $84k and Average income for Married families is $102k.
What does this tell us? And how does that impact our thoughts on Multi-Family investing?
First off if we take 30% of $48k these households are able to afford around $1200 a month. Since the minimum rent for a 3 BR unit is about $1500 these folks need a subsidy.
It also tells us that the Median Married family making $84k can afford around $2100 a month for housing at 30%. Some of these people are renting but most can afford a home.
Where is the sweet spot? People who have chosen to rent since they are young and do not have their final location picked out, and those on subsidies.
The key is to provide a solid property so that you can reduce turnover.