10 Best Places to Buy Rental Property in 2018

Affordable Cities With High Rents

Picture of Best Places to Buy Rental Property in 2018
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Great opportunities to invest in rental property exist all across the United States. Many factors need to be evaluated to determine if a potential investment will be profitable now and in the future. Factors used to determine the best places to buy rental property in 2018 include:

  • Average Home Price and Growth
  • Average Rental Price and Growth
  • Population Growth
  • Employment Opportunities

Here are ten rental markets that have promising rental property investments in 2018.

10 Best Places to Buy Rental Property in 2018

1. Memphis, Tennessee 

  • Population: 1.3 million
  • Population Growth 2010 to 2017: 0.83%
  • Average Home Price: $136,200
  • Annual Housing Growth: 9.6%
  • Average Rent Price: $1094
  • Annual Rent Growth: 3.4%

Homes are affordable in Memphis with an average price at $136,000. Housing has grown by 9.6 percent over the last year and rent prices have grown by 3.4 percent. Memphis is an entertainment and cultural hub with a desirable cost of living, which is 15.7 percent below the national average.

2. Houston, Texas 

  • Population: 6.5 million
  • Population Growth 2010 to 2017: 10.12%
  • Average Home Price: $200,900
  • Annual Housing Growth: 6.3%
  • Average Rent Price: $1548
  • Annual Rent Growth: 0.1%

Home prices hover at $200,000 and average rents at almost $1550 a month. These numbers are promising for a profitable rental property investment. Houston’s population continues to grow with an increase of over 10 percent since 2010.

3. Columbus, Ohio 

  • Population: 2 million
  • Population Growth 2010 to 2017: 11.71%
  • Average Home Price: $184,200
  • Annual Housing Growth: 7.9%
  • Average Rent Price: $1336
  • Annual Rent Growth: 0.4%

Home prices in Columbus, Ohio are affordable with an average cost of $184,000. Average rent prices of $1330 are substantial, especially when compared to the average home cost. The cost of living in Columbus is 9.6 percent lower than the United States average.

4. Tampa, Florida 

  • Population: 2.9 million
  • Population Growth 2010 to 2017: 14.81%
  • Average Home Price: $208,400
  • Annual Housing Growth: 9.9%
  • Average Rent Price: $1390
  • Annual Rent Growth: 1.4%

Tampa’s unemployment rate is 4.8 percent, which is below the national average of 5.2 percent. Its job market also looks promising with employment growth at 1.6 percent over the last year.

5. Atlanta, Georgia 

  • Population: 5.6 million
  • Population Growth 2010 to 2017: 15.78%
  • Average Home Price : $209,700
  • Average Housing Growth: 12.3%
  • Average Rent Price: $1394
  • Average Rent Growth: 0.7%

For a large city, Atlanta is affordable and people are starting to take notice. The population has grown by almost 16 percent since 2010. The average home price is just over $200,000, with an average rent close to $1400. Home to corporate giants like CNN, Home Depot and UPS, job growth is up 2.2 percent this year.

6. Jacksonville, Florida

  • Population: 1.4 million
  • Population Growth 2010 to 2017: 8.55%
  • Average Home Price: $204,600
  • Annual Housing Growth: 9.6%
  • Average Rent Price: $1340
  • Annual Rent Growth: 1.6%

Jacksonville, Florida has had steady growth since 2010 with a population increase of 8.5 percent. Jacksonville’s cost of living is 0.5 percent lower than the United States average. It boasts a diverse economy which includes a port mixed with banks, financial institutions and large companies like BellSouth.

7. Orlando, Florida 

  • Population: 2.3 Million
  • Population Growth 2010 to 2017 Census: 17.61 %
  • Average Home Price: $231,000
  • Annual Housing Growth: 9.7%
  • Average Rent Price: $1449
  • Annual Rent Growth: 1%

Orlando, Florida, once seen primarily as a vacation destination, has now become the happiest place on earth for many real estate investors. Homes are still affordable at an average price of just over $230,000 and rent prices are substantial. An average rent price of $1450 will help offset the purchase price.

The population has increased by almost 18 percent since 2010. A booming economy, recent storms along the Florida coasts and a desire to live downtown have all increased Orlando’s desirability.

8. Minneapolis, Minnesota

  • Population: 3.5 million
  • Population Growth 2010 to 2017: 10.39%
  • Average Home Price: $263,300
  • Annual Housing Growth: 6.8%
  • Average Rent Price: $1638
  • Annual Rent Growth: 0.5%

With an average rent over $1600, Minneapolis is a city to consider. Home prices hover around $250,000. It has a very diverse economy and is home to numerous corporations including Target, 3M and United Healthcare. It has a low unemployment rate of 3.7 percent.

9. Las Vegas, Nevada

  • Population: 2.1 million
  • Population Growth 2010 to 2017: 9.92%
  • Average Home Price: $273,800
  • Annual Housing Growth: 15.4%
  • Average Rent Price: $1305
  • Annual Rent Growth: 1.4%

Job growth in Las Vegas is positive, with a 3.5 percent increase in the last year. Jobs in the health and education sectors have increased by 50 percent since 2008, marking a push to diversify the economy dominated by tourism.

10. Durham, North Carolina

  • Population: 267,743
  • Population Growth 2010 to 2017: 17.26%
  • Average Home Price: $234,400
  • Annual Housing Growth: 7.5%
  • Average Rent Price: $1394
  • Annual Rent Growth: 0%

Housing growth is up 7.5 percent in Durham and average rents near $1400 a month. Durham boasts a strong economy centered on its proximity to colleges such as Duke University and the University of North Carolina at Chapel Hill. Other desirable features include a commute time of 8 minutes when the national average is 26 minutes and a low unemployment rate of 4.4 percent.