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Best U.S. Markets for Single-Family Rentals

U.S. Single-Family Rentals Forecast For Q1 2015

single family rental investment best locationsMany good options exist for single-family residential rental investors in different U.S. counties.  It is now possible for savvy real estate investors to get double-digit returns and rents that escalate more than 10 percent a year. According to a report released by RealtyTrac, about 20 markets have the potential to deliver returns that soar more than 15% and many over 20% during Q1 2015.

According to a recent report that analyzed U.S. single-family housing data, there are many good options available for single-family residential investors. It is estimated that single-family residential rental properties will bring in an average return of 9.05% during this year's first quarter, but 20 individual markets show the possibility of returns that soar more than 15%.

Bibb – a county in Georgia shows potential annual gross yields of 22.33 percent and Clayton, on the other, shows 25.83 percent. Bibb County is located in the Macon, Ga. metro area, and Clayton County is in the Atlanta metro area.

Richmond and Baltimore show potential annual gross yields soaring more than 20% and yields exceeding 17 percent in the following counties: Philadelphia; Wayne (Detroit metro area); Pasco and Hernando counties (Tampa, Fla., metro area); Wyandotte (Kansas City metro area) and Oswego (Syracuse, N.Y.).

Baltimore County is also one of the most distinctive counties with the maximum annual average cash flow — $13,770 — for a real estate investor. Philadelphia County and Clayton County also hold the distinction with the maximum average annual cash flow for an investor of $12,048 and $11,352 respectively.

Although the rental return prediction in some counties may be jaw-dropping, there may be some risks involved as well. A real estate investor should certainly analyze the risks carefully by performing a thorough investigation into the facts and circumstances. Most of the counties placed in the top 20s for the maximum gross rental yields also had unemployment rates exceeding the national average, which could result into renters having problems paying the rent. This could imply that investors may face more evictions in these counties compared to others.


In the same report, the investors can also find information about markets that are seen as safe havens for the single-family rental investor.

Only three cities – Trumbull County in the Youngstown-Warren-Boardman, Richmond County in the Richmond, Va., metro area Pa./Ohio MSA; and Muskegon County in the Muskegon-Norton Shores, Mich., metro – were considered as top 20 markets for rental returns as well as top 10 safe haven markets. All these three counties are known for having very budget-friendly median home prices under $80,000. Fair market rents ranged between $961 and $1,306, and gross returns were exceeding 15 percent.

Muskegon County held a distinction as it also was identified as one of the 35 markets that saw a rental increase of 10% or more from 2014 to 2015.

Investors should realize that such huge increases in rentals are not the norm across the nation. Many of the counties at the top of the list with the increasing rental rates were metro areas that have seen powerful economic growth from a rise in gas production and domestic oil. On top of this list was Midland followed by five counties all within the Denver-Aurora metro area.

Want to know the right place to invest in the rental property business? Our experts at Rental Home Financing can help you zero in on the perfect spot that delivers consistent profits over the long term. We can help you with the relevant lending needs including blanket loans and refinance. Contact us, call today at 888-375-7977.


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