Real estate is a solid bet for many who are looking for passive investment streams, or to build a service that’s in high demand in many parts of the US.
If you have been thinking of venturing into the real estate business, this is the time to stop thinking and start doing.
However, if you haven’t had any experience in the real estate industry, it’s a good idea to get advice from someone who has so you can start now.
To help you start your real estate business? Here is a list of best states for rental property this year.
Before we begin this journey, see the table of content here below for an overview of what to expect from this article.
1. Orlando, Florida
Orlando is in Florida’s “sunbelt” region. An area that is known for its world-famous amusement parks, attractions, warm climate, and entertainment.
The most interesting part of it is that, despite these low housing prices statewide, many home seekers prefer to rent a house instead of buying.
The reason is that it is possible to purchase 3-bedroom properties that is fully renovated and also be in good neighborhood for as little as $193,000.
2. Tampa, Florida
Tampa is on the west coast of Florida. The area has over 3 million people in the metropolitan area. Areas that are included in this area include Largo, New Port Richey, Clearwater’s, Petersburg, Holiday and Tampa.
In Tampa Bay, 34,300 new jobs were created in 12month, which makes the job growth rate rise to 71% above the national average.
Tampa metro area has ranked 15th on the Milken Institute’s 2018. At Tampa, you can find or afford a house at very affordable prices as low as $150, 000 and even rent them out for $1,485per month.
3. Cleveland, Ohio
Cleveland, Ohio is on the southern shore of Lake Erie in about 60miles west of the Pennsylvania border. Cleveland is among the best strongest real estate market in the nation which gives the investors the future growth.
As one of the best states for rental property in USA, the area breeds a high cash flow. With a workforce of 2million people, they have ranked the 12th largest economic region in the nation.
Three reasons to Invest in the Cleveland Real Estate Market this year.
- Job Growth: In Cleveland they have a fast growing tech and healthcare sector.
- Affordability: The Median price is $105,000. That is 53% lesser than the average 3bedroom Nationwide. This implies that good opportunity for cash flow and appreciation are in the market and is a great news for investors.
- Population Growth
4. Detroit, Michigan
Detroit, Michigan is one best states for rental property. It is a home to 100 Fortune and 500 companies, which include Kellogg, Quicken Loans, Penske Automotive, Whirlpool, and Walmart.
5. Birmingham, Alabama
Birmingham city is one of the most popular cities in the state of Alabama. The name “Magic City” was given to Birmingham as a Nickname because of the fast-growing population.
Investing in real estate in Birmingham is more affordable than many other U.S. cities. The reason is that the average home price is still well below the national level.
Housing Market Statistics in Birmingham
- Population: 1.2M
- 1-Year Job Growth Rate: 1.55%
- 8-Year Population Growth: 2.03%
- Unemployment Rate: 2.5%
- Rent Per Month: $1,150
- Sales Price: $116,000
- 7-Year Equity Growth Rate: 30.04%
- Median Household Income: $67,000
Colorado is It is also lucrative as a state for property investment. To start earning money on investment buying rental property in Colorado is the right action to take. They are also experiencing more income growth to compare to that of the average state. $9,000 which is the median income is nearly higher than the rest of the country. Depending on how and where you choose to buy Colorado will offer you a varied environment. It’s one of the few states with a flat income tax structure.
Colorado real estate market statistics
- Median Property Price: $589,983
- Price per Square Foot: $556
- Price to Rent Ratio: 25
- Traditional Rental Income: $1,935
- Traditional Cash on Cash Return: 1.4%
- Average Airbnb Daily Rate: $207
- Airbnb Rental Income: $2,764
- Airbnb Cash on Cash Return: 2.3%
- Airbnb Occupancy Rate: 57%
It is located on the island of Oahu it can also be recognized as the Gathering Place. It’s also a home by majority of Oahu’s population where 22leads per property and two weeks on the market are being expected for the landlord and the median sale price as little higher at the price of $585k. An urban environment as well as rural and natural communities are provided by Honolulu
HONOLULU MARKET STATISTICS
- Median Sale Price: $585k
- Average Rent: $2148
- Employment growth: -2.8%
- Number of days on the rental market: 15
- Increase in home values: -4.8%
- Average Number of Leads per Property: 22
- Population growth: -1.2%
It’s location it’s in the sunniest end of Maui’s Southwest shore. It is popularly known for its large isthmus and many large between its mountains. It is known as Valley Isle and also has affordable accommodations for visitors and residents and famer’s market also they have many environment and lots of activities and sport areas for kids. The population is steadily growing in Kihei as one of the popular desired places to live on Maui.
KIHEI MARKET STATISTICS
- Average Number of Leads per Property: 19
- Number of days on the rental market: 9
- Increase in home values: -8.4%
- Employment growth: -2.6%
- Population growth: 0.9%
- Average Rent: $2420
- Median Sale Price: $609k
9. St. Louis, Missouri:
St Louis is a well-known among the real estate investors because of their smooth economy, growing technology hub, large metro population and most important aspect of it is that it is very cheap and affordable housing market. They are one of the most popular affordable and stable real estate market in the state today where investors can make payment of single homes for as low as $120,000 and rent them out for as little as 1% of the purchase price. St Louis has an affordable property because anyone can purchase a near and fully renovated properties which is in good neighborhood for as low as $127,000 i.e. 37% lower to compare to that of the national average which is $200,000
Housing Market Statistics
- Population (2018-19): 2.8 M
- Median Rent Per Month (2018-19): $1,269
- Unemployment Rate (2018-19): 4.50%
- 1-Year Job Growth Rate (2018-19): 0.72%
- Median Sales Price (2018-19): $176,000
- 6-Year Population Growth (2018-19): 0.63%
- Median Household Income (2018-19): $60,000
- 5-Year Equity Growth Rate (2018-19): 27%
10. Huntsville, Alabama:
It is popularly marked for its rich southern heritage and a legacy of space missions. Huntsville was nicknamed “The Rocket City” reasons because during the 1960s when the Saturn V rocket was developed at Marshall space Flight Center, which later make it possible for Neil Armstrong and Buzz Aldrin to walk on the moon.
And because of that Huntsville is popularly known as one of the most accepted cities in the southeast part of the state and also the leading communities that leads the economic recovery in the country which makes the Money magazine to address it as one of the nation’s most affordable cities in the state.
It’s also accepted for its defense Industries, technology and space. So therefore Huntsville is one of the most popular place to buy rental property in 2020
Housing Market Statistics
- 1-Year Job Growth Rate: 2.76%
- Median Rent Per Month: $1,075
- Unemployment Rate: 2.3%
- Median Household Income: $49,060
- Population: 462,693
- 8-Year Population Growth: 10.35%
- Current Median Home Price: $158,750
- 7-Year Equity Growth Rate: 34.53%