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October 21, 2014

Top 10 ‘Hidden Gem’ Single-Family Rental Markets

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Top 10 ‘Hidden Gem’ Single-Family Rental Markets

While investors are reportedly dwindling in numbers lately, some single-family rental markets are still garnering a great deal of investor interest.

Some investors are finding it’s the little-known areas that may offer some of the highest returns due to less competition. 

“Buying single-family homes as rentals still yields solid returns in many markets across the nation, but it is difficult for individual investors and even small-to medium-sized institutional investors to find reasonably priced inventory in markets dominated by the 800-pound gorillas in the single-family rental space,” says Daren Blomquist, vice president at RealtyTrac.

RealtyTrac and RentRage released a list of the following top “Hidden Gem” single-family rental markets nationwide, based on gross rental yield (the expected return on investment before taxes, maintenance fees, and other costs). 

1. Wichita County, Texas
Median market value: $84,000
Median rent value: $938
Gross yield: 13.4%

2. Lubbock County, Texas
Median market value: $111,000
Median rent value: $1,089
Gross yield: 11.8%

3. Canadian, Okla.
Median market value: $131,000
Median rent value: $1,176
Gross yield: 10.8%

4. Williamson, Texas
Median market value: $158,000
Median rent value: $1,403
Gross yield: 10.70%

5. Monroe, N.Y.
Median market value: $121,000
Median rent value: $1,043
Gross yield: 10.30%

6. Davidson, Tenn.
Median market value: $149,000
Median rent value: $1,263
Gross yield: 10.20%

7. Alachua, Fla.
Median market value: $139,000
Median rent value: $1,175
Gross yield: 10.10%

8. Schenectady, N.Y.
Median market value: $153,000
Median rent value: $1,278
Gross yield: 10%

9. Jefferson, La.
Median market value: $153,000
Median rent value: $1,260
Gross yield: 9.90%

10. Allegheny, Pa.
Median market value: $126,000
Median rent value: $1,034
Gross yield: 9.80%

Source: RealtyTrac 

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