Best Rental Markets for Property Investments Based On RealtyTrac Reports.
Best Rental Markets Nationwide with the highest return on your money as rentals.
RealtyTrac’s Q2, 2014 Residential Property Rental Report, which ranked the best markets for buying residential rental properties along with the best markets for renting to baby boomers and the best markets for renting to Millennials, found that investors buying U.S. residential rental property in the second quarter of 2014 are getting an average annual return of 9.97 percent, down from an average annual return of 10.60 percent a year ago.
Top 25 overall markets for buying rental properties
RealtyTrac factored in unemployment rates along with annual gross rental yields to select the 25 best markets for buying residential property rentals. Counties in the top 25 all had unemployment rates of 4.5 percent or lower in April 2014 — well below the national average of 6.3 percent — and had an annual gross rental yield of 9 percent or higher.
The three best markets for buying residential property rentals were: Anderson County, S.C. in the Anderson metro area (15.33 percent annual gross rental yield); Woodbury County, Ia., in the Sioux City metro area (13.02 percent); and Pickens County, S.C., in the Greenville-Maudline-Easley metro area (13.00 percent).
Other metro areas with counties in the top 25 best markets for buying residential property rentals were Gainesville, Fla., Washington D.C., Columbia, S.C., Pittsburgh, Pa., Columbus, Ohio, Charleston, S.C. and Omaha, Neb.
“We have not had the apartment building development that we really need leading to a decreased supply in available rentals, which is causing rental rates to increase,” said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty, covering the Oklahoma City and Tulsa, Okla. markets, both of which had counties in the top 25 best markets for buying residential property rentals. “We are also noticing that the new qualified mortgage rules are restricting many first time home buyers from being able to qualify, which is adding to the demand for rental properties.”
Top-overall-markets-for-buying-rental-properties 25 markets for renting to baby boomers:
Annual gross rental yields for the top 25 baby boomer rental markets ranged from 5.50 percent in Placer County, Calif., in the Sacramento metro area up to 20.93 percent in Pasco County, Fla., in the Tampa Bay-St. Petersburg metro area. Pasco County was joined by 15 other Florida counties in 12 other Florida metro areas in the top 25.
Other metro areas with counties in the top 25 for renting to baby boomers were Lake Havasu City-Kingman, Ariz., Wilmington, N.C., Daphne-Fairhope-Foley, Ala., Prescott, Ariz., Asheville, N.C., Seaford, Del., Bend, Ore., and Hilton Head, S.C.