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SmartZip: 20 high-ranked real estate investor markets

1 in 4 is in Florida

Editor’s note: In compiling the "10 Best Markets for Real Estate Investors" report, Inman News reached out to a range of data providers and online real estate sites that supplied statistics and charts to identify real estate markets that may be well-suited for investors. The following chart and accompanying methodology were provided by real estate investment data firm SmartZip Analytics Inc.

SmartZip Top-10 Large Investor Markets
MetroSmartZip InvestorScore
Miami-Fort Lauderdale-Miami Beach66
Orlando-Kissimmee, Fla.63
Indianapolis-Carmel, Ind.62
Riverside-San Bernardino-Ontario, Calif.62
Jacksonville, Fla.61
Rochester, N.Y.61
San Antonio, Texas61
Tampa-St. Petersburg-Clearwater, Fla.61
Chicago-Naperville-Joliet, Ill.-Ind.-Wis.60
Las Vegas-Paradise, Nev.60

Based on markets with the highest SmartZip InvestorScore. Considers metros with more than 250,000 homes.

SmartZip Top-10 Mid-Size Investor Markets
MetroSmartZip InvestorScore
Bloomington, Ind.75
Utica-Rome, N.Y.71
Beaumont-Port Arthur, Texas69
Evansville, Ind.69
Gulfport-Biloxi, Miss.69
Port St. Lucie-Fort Pierce, Fla.66
Corpus Christi, Texas65
McAllen-Edinburg-Mission, Texas65
Bakersfield, Calif.64
Lakeland, Fla.64

Based on markets with the highest SmartZip InvestorScore. Considers metros between 75,000-250,000 homes.

Source: SmartZip.


Charts are based on markets with the highest SmartZip InvestorScore. The Top 10 Mid-Size Investor Markets chart considers metros with between 75,000 and 250,000 homes. The Top 10 Large Investor Markets chart considers metros with more than 250,000 homes.

InvestorScore (for a property): This is a relative rating of the subject property’s investment potential for buyers purchasing the home as a rental. It is based on a risk-adjusted financial assessment of the property’s projected ability to generate cash flow and annual investment yield over a 10-year holding period.

InvestorScore uses a scale of 1-100, and all properties nationwide are stack-ranked (basically rated on a curve) such that 50 is the national average.

Properties that score above 50 are expected to outperform the market while those that score below 50 are expected to underperform.

10 Best Markets for Investors 

InvestorScore applies proven stock and bond analytics to a comprehensive set of real estate investment attributes spanning home-price trends, economic and government factors, school quality, community demographics, rental market and lifestyle. These analytics compute expected monthly cash flow and projected return on investment upon sale of the property in 10 years, and adjust them for expected risk associated with volatility of home prices and rents in the market.

InvestorScore (for a market): An average of the InvestorScore of all homes in a given market.

Source: SmartZip.

Read the full report: "10 Best Markets for Real Estate Investors."

View more charts provided by data companies and online real estate websites:

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