The 10 Best Places to Buy Rental Property in the US
Are you looking to increase your income and make a smart investment? Well, you can never go wrong with property. Renting out a piece of real estate is a simple and easy way to earn a passive income, while at the same time leaving you with an asset that only increases its value over time.
In this article, we have made a list of the best places to buy rental property in the United States. We provided you with not only a list of cities but also why these places are a great option to rent (and later live). The data has been gathered from the United States Census Bureau website, as well as the U.S. Bureau of Labor Statistics.
The 10 Best Places to Buy Rental Property in the US in 2023
Birmingham, Alabama
The first on our list is Birmingham, Alabama. This is a lovely little town that is perfect for renting and a great option if you’re looking for a place to retire to.
Key points:
Median household income: $38,832
Median price of single-family home: $256,250
Job growth rate (annual/next 10 years): -2%; 29.2%
Unemployment rate: 5.6%
Average salary (annual): $41,728
Average monthly rent: $1,278
The median sale price of a single-family home is almost half of the national average, while the unemployment rate is lower than the national average (slightly). Job growth is rather slow, with the national average being 36%.
While salaries, growth, and unemployment are not up to par with the national average, keep in mind that real estate prices are low here, as is the cost of living. If you have limited funds but still want to rent out an apartment or house, you can almost certainly afford to do so here.
Albuquerque, New Mexico
This might be one of the best places to buy vacation rental property in the States. While the summers are very hot, they are dry and actually pleasant, with no suffocating humidity. It’s a beautiful mix of multiple cultures and a great place to visit over the late and early summer months.
Key points:
Median household income: $53,936
Median price of single-family home: $315,000
Job growth rate (annual/next 10 years): 3.3%; 34.5%
Unemployment rate: 7.4%
Average salary (annual): $63,000
Average monthly rent: 1,235
The median household income is slightly lower than the national average. However, a single-family home costs far less than the median $428,700.
Albuquerque’s economy is relatively healthy. Its unemployment rate is slightly higher than the rest of the US (7.4% vs 6%). However, its job market growth is slightly higher than the average.
It’s among the best places to buy rental property in the USA for a reason. With a sturdy economy and solid prices, and a growing job market, you will easily find an affordable home to buy, and renters who can use it.
Charlotte, North Carolina
With its mild climate and closeness to the shoreline, Charlotte is a great place to visit, own property, or simply live in.
Key points:
Median household income: $65,359
Median price of single-family home: $412,408
Median sale price: $412,408
Job growth rate (annual/next 10 years): 2.7%; 45.2%
Unemployment rate: 4.9%
Average salary (annual): $71,000
Average monthly rent: $1,639
Charlotte’s real estate prices are very close to the national average. What makes it stand out is the below-average unemployment rate and explosive job growth. Its average monthly rate is also lower than most of the other places on our list.
You will have very little trouble finding renters who can afford a place here now and in the near future.
Newport, Oregon
This is one of the best places to buy beach rental property in the United States. Right next to the Pacific, it has a vibrant scientific, artistic, and tourism community. It also has a ton of amazing fishing spots.
Key points:
Median household income: $49,792
Median price of single-family home: $791,500
Job growth rate (annual/next 10 years): -0.2%; 33.3%
Unemployment rate: 8.7%
Average salary (annual): $46,000
Average monthly rent: $2,200
Housing prices are almost twice the national average in Newport. However, rent is very high too. Unemployment rates are high, while the current job growth is low (though this is predicted to change significantly).
If you can afford it, Newport is perfect for an Airbnb-based rental property. It’s a true blue tourist spot, great for family vacations. The unemployment rates should not bother you because you will most likely rent to vacationing families anyway.
Boise, Idaho
Boise is one of the best places to buy investment property due to its low crime rates and many outdoor sports options. Furthermore, it’s a great place to retire later on due to its great healthcare and strong retiree community.
Key points:
Median household income: $63,778
Median price of single-family home: $499,900
Job growth rate (annual/next 10 years): 3.6%; 50.9%
Unemployment rate: 3.6%
Average salary (annual): $67,000
Average monthly rent: $1,677
Boise has above-average income, above-average monthly rent prices, and slightly above-average real estate prices. What makes it stand out is its unemployment rate is half of the national average, while its future job growth is expected to explode, being twice as fast as the rest of the US.
It’s the best place to buy rental property if you’re looking for a safe bet and stable renters.
Cincinnati, Ohio
The largest metropolitan area in Ohio, Cincinnati, is a great place to live and raise a family. With a stable economy, it’s perfect for renting as well.
Key points:
Median price of single-family home: $234,000
Median household income: $42,663
Job growth rate (annual/next 10 years): 0.8%; 29.8%
Unemployment rate: 4.9%
Average salary (annual): $69,000
Average monthly rent: $1,200
Cincinnati boasts low unemployment rates, slow but acceptable job market growth, and average monthly rental prices.
What keeps Cincinnati on our list of the best places to own rental property are its low housing prices. Its real estate costs are very low when compared to other cities on this list, being almost half of the national average.
Chicago, Illinois
What else is there to say about Chicago that hasn’t been said a million times? The windy city has a vibrant nightlife, exciting history, and relatively affordable living for a place of its size and stature.
Key points:
Median household income: $62,097
Median price of single-family home: $305,000
Job growth rate (annual/next 10 years): -0.2%; 25.7%
Unemployment rate: 9%
Average salary (annual): $75,000
Average monthly rent: $2,206
The median sale price of a single-family home is significantly lower than the national median home price, especially for such a large city. It’s probably the best place to own rental property if you want to own property in a major American city.
At 9%, Chicago has a rather high unemployment rate when compared to the US average of 6%. Its job market has also decreased, and job growth over the next ten years is also much lower than the average of 33.5%.
But the reasons you should check it out as a home for your rental property is simple—housing is relatively cheap, while rent is high. And, of course, Chicago is a dream for many people, on par with New York and San Francisco with its history and reputation.
Phoenix, Arizona
If there is one thing Phoenix is known for, it’s resorts and golf. And if you’re looking for a sunny place that isn’t too dry nor too muggy, then this is the perfect place to retire after you’re done with renting. It’s among the top best places to buy short term-rental property for a reason.
Key points:
Median household income: $60,914
Median price of single-family home: $455,000
Job growth rate (annual/next 10 years): 3.3%; 48.2%
Unemployment rate: 6.6%
Average salary (annual): $71,000
Average monthly rent: $1,590
The city has a very strong job market growth rate, average unemployment, and average real-estate prices.
Overall, Phoenix real estate is a wonderful investment, a place where you can rent out a home for decades and then move there once you retire.
Greensboro, North Carolina
Greensboro is a developed, urban city. However, it also has a sleepy population of 299,035, making it a great compromise between urban life and small-town living.
Key points:
Median household income: $49,492
Job growth rate (annual/next 10 years): 1.4%; 31.5%
Unemployment rate: 5.6%
Median price of single-family home: $256,500
Average salary (annual): $63,000
Average monthly rent: $1,218
This is another affordable and stable place to buy rental property. The unemployment rate and job growth rates are both solid if a bit under the national average. Housing, however, is cheaper than in most areas.
It’s one of the best rental markets when it comes to the stability and safety of investment.
Orlando, Florida
Besides the one hundred lakes found in its vicinity, Orlando is home to theaters, galleries, and festivals. And, of course, the most prominent Walt Disney World resort in the world.
Key points:
Median price of single-family home: $396,250
Median household income: $55,183
Job growth rate (annual/next 10 years): 3.9%; 51%
Unemployment rate: 5.8%
Average salary (annual): $66,000
Average monthly rent: $1,937
The final addition to our list of the best places to buy rental property , you’ll notice that rent is higher here than in other places within our selection. Furthermore, predicted job growth is very high, leading to a stable and viable renting investment option.
Conclusion
Whether you want to rent indefinitely or only for a short while, the above list is for you. Just always remember that this is likely going to be a long-term decision and that you need to keep in mind not only the quality of the home but the economic potential of the place you’re buying in.
