Top Markets for Real Estate Rentals Revealed

By Heather Taylor2 Comments
 
Investors have the best chance for the highest potential returns on single-family rentals in markets in Georgia, Maryland and Virginia, according to RealtyTrac’s report showing what it says are the best markets for real estate rental returns in the first quarter of 2015.

The state of the housing market continues to provide ideal conditions for investors with rentals in many parts of the country, according to the report.  

“With homeownership rates at their lowest level in 20 years, historically low levels of housing starts and relatively low home prices in many parts of the country, there is still plenty of opportunity in the U.S. housing market for single family rental investors employing a variety of investing strategies,” said Daren Blomquist, vice president at RealtyTrac.

The top markets for residential rental returns include:

Metro Area               Annual Gross Yield
Atlanta-Sandy Springs-Marietta, GA  25.83%
Macon, GA         22.33%
Baltimore-Towson, MD 20.99%
Richmond, VA                                                                   20.42%
Detroit-Warren-Livonia, MI               19.34%       
Philadelphia, PA-Camden, NJ, Wilmington, DE  18.78%
Tampa-St. Petersburg-Clearwater, FL                     17.86%
Syracuse, NY                                                                    17.81%
Kansas City, MO                                                               17.6%
Augusta-Richmond County, GA-SC                          16.97%

The markets were ranked by Annual Gross Rental Yield, the total amount of rental income received in a year divided by the median sales prices of homes in each market.

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