More Americans are renting homes today than at any time in the past 50 years, and more investors are looking to cash in, newly released data shows.
HomeUnion, which helps investors find single-family rental homes, released a list of projections for investors looking to rent out and hold properties for the next five years. Researchers considered factors like vacancies, rent appreciation, permitting activities for both apartments and single-family homes, and the area’s job growth and school rankings.
“We’re looking at the supply-and-demand factors in each market and all of the neighborhoods within those markets,” says Steve Hovland, HomeUnion’s director of research. “As we get new information, we apply that to our methodology.”
The following are the top ZIP codes for rental properties based on annualized total returns. (The total return listed below includes projected appreciation and cash flow based on HomeUnion’s methodology. Learn more.)
- 33434: Hamptons at Boca Raton, Fla. (West Palm Beach metro area): 8.1% (annualized total return)
- 19035: Gladwyne, Pa. (Philadelphia metro area): 6.9%
- 48322: West Bloomfield Township, Mich. (Detroit metro): 6.9%
- 33158: Palmetto Bay, Fla. (Miami metro): 6.8%
- 33327: Weston, Fla. (Fort Lauderdale metro): 6.6%
- 37062: Fairview, Tenn. (Nashville metro): 6.5%
- 66223: Overland Park, Kan. (Kansas City metro): 6.2%
- 60016: Des Plaines, Ill. (Chicago metro): 6%
- 45255: Forestville/Cherry Grove (Cincinnati metro): 5.9%
- 30078: Snellville, Ga. (Atlanta metro area): 5.8%
Source: “These Are the Top ZIP Codes for Rental Returns,” CNBC (July 21, 2017)