10 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% over the last year and rent prices have grown by 3.4%. Memphis is an entertainment and cultural hub with a desirable cost of living, which is 15.7% 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% 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% 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%, which is below the national average of 5.2%. Its job market also looks promising with employment growth at 1.6% 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% 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% 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%. Jacksonville’s cost of living is 0.5% 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% 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%.

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, Nevada is positive, with a 3.5% increase in the last year. Jobs in the health and education sectors have increased by 50% 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% 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%.