Head to the Midwest or the East Coast for some of the biggest hotspots to cash in on a rental investment this year, according to a new analysis from TurboTenant, a property management tool. Overall, 31 cities from 20 states are featured in the report, which names the cities for the best rental investments in 2020. New York and Ohio tied for the most cities making the list, at three each.
“When identifying the top 31 cities, we looked for a positive ROI and high growth numbers across all data points,” says Sarnen Steinbarth, founder and CEO of TurboTenant. Researchers also factored in employment and population growth, increase in home values, and rental yield when identifying the top places for rental investments. Here are the top 10 metros to make the list:
Reading, Pa.
- Increase in home values: 11.1%
- Median sales price: $140,000
- Average rent (for a two-bedroom): $957
District Heights, Md.
- Increase in home values: 0.4%
- Median sales price: $252,000
- Average rent: $1,408
Allentown, Pa.
- Increase in home values: 19%
- Median sales price: $145,000
- Average rent: $1,063
East Orange, N.J.
- Increase in home values: 10%
- Median sales price: $273,000
- Average rent: $1,534
Nashua, N.H.
- Increase in home values: 4.5%
- Median sales price: $283,000
- Average rent: $1,524
Cincinnati
- Increase in home values: 3.1%
- Median sales price: $163,000
- Average rent: $1,048
Paterson, N.J.
- Increase in home values: 11.9%
- Median sales price: $268,000
- Average rent: $1,614
New Castle, Del.
- Increase in home values: 8%
- Median sales price: $188,000
- Average rent: $1,884
Rochester, N.Y.
- Increase in home values: 5.6%
- Median sales price: $136,000
- Average rent: $1,126
Hyattsville, Md.
- Increase in home values: 0.4%
- Median sales price: $279,000
- Average rent: $1,982
Source: TurboTenant
