How important are school zones in Buy and Hold?

Question

I am currently looking at homes for my second investment property.  I noticed that one county near me has all 7, 8, or 9 school ratings and another county near me has all 4, 5 or 6 school ratings.   And of course the houses with better schools cost more then the ones with the poor schools.

My question is should I be focused on the school zones or should I just be focused on how much cash flow a property can produce?  Have any of you ever noticed a correlation between school zones and "quality" of tenants?

Alicia Villines · Answer

Good schools do command higher rent, but often people without children would rather have a lower rent rate.  A three-bedroom house with a yard is most marketable to a family with kids.  So, what kind of renter would be most attracted to the potential property?

Matthew Paul · Answer

good schools command higher rent .

Penny Clark · Answer

@Malcolm Lawson, If the rental you're purchasing will most likely appeal to families (3/2 SFH), then school quality is important. You can use it as a selling point ( The neighborhood school has a 7 rating according to website you're quoting from), but it will also give your tenants with school age children an incentive to renew their lease and avoid turnover. If you are buying in lower income areas due to better cash flow, school will more likely be in the lower range around 4-6). However, it may not be a bad school if the leadership and parent involvement is strong. Sometimes the only way you know this is by talking to parents who have children enrolled there.

An alternative to choosing good school vs higher cash flow with a poor school is to look for a fixer in a area where schools rate 7 or above.

Good luck!

Chinmay J. · Answer

@Malcolm Lawson  - I wish I could give you a cookie cutter response. Run the numbers for property regardless of where it is, and let the numbers do the talking for you.  High rent doesn't mean anything if the price to acquire the property is cost prohibitive.

Harpreet Walia · Answer

above @Malcolm Lawson

Harpreet Walia · Answer

Malcolm, what did you end up doing here? I am in the same situation as you are in now. I mostly try to get into good school zones, but would like to know what you end up doing? :)

Jeff B. · Answer

First, define the market you're trying to serve

• yuppies (young singles)
• families w/kids
• retired seniors

Hopefully, the leads directly to your answer.

Daria B. · Answer

ditto

How important are school zones in Buy and Hold?

Most Popular Reply