10 states with lowest buy-vs.-rent ratios*:
1. Illinois
2. Michigan
3. New York
4. Florida
5. Washington, D.C.
6. Nevada
7. West Virginia
8. Ohio
9. Virginia
10. Arizona

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 property search site HotPads.

10 states with lowest buy-vs.-rent ratios*:
1. Illinois
2. Michigan
3. New York
4. Florida
5. Washington, D.C.
6. Nevada
7. West Virginia
8. Ohio
9. Virginia
10. Arizona

National Data, April 2010 – April 2011
S
t
a
t
e
Median Sale
Listing Price
% Change Median
Sale Listing Price
(12 months)
Median Rent
Listing Price
(12 months)
% Change Median
Rent Listing Price
(12 months)
Rent-Buy Ratio Change in
rent ratio
AK $259,900 -4% $1,075 13% 20.15 -3.53
AL $169,900 -6% $740 4% 19.13 -2.01
AR $149,000 -3% $675 1% 18.40 -0.63
AZ $149,000 -17% $888 4% 14.08 -3.57
CA $299,000 -16% $1,475 4% 16.89 -4.01
CO $249,500 -8% $996 10% 20.88 -3.90
CT $259,900 -9% $1,300 8% 16.66 -2.98
DC $325,000 -11% $2,185 9% 12.40 -2.81
DE $232,500 -3% $965 5% 20.08 -1.57
FL $184,900 -14% $1,250 9% 12.33 -3.18
GA $159,900 -11% $900 2% 14.81 -2.26
HI $439,000 0% $1,800 6% 20.32 -1.26
IA $140,000 -12% $713 5% 16.37 -3.21
ID $168,500 -9% $693 3% 20.28 -2.55
IL $180,000 -18% $1,295 8% 11.58 -3.63
IN $134,900 -4% $723 6% 15.55 -1.48
KS $144,900 -6% $760 2% 15.89 -1.39
KY $148,500 -4% $710 2% 17.43 -1.04
LA $169,500 -5% $875 1% 16.14 -1.10
MA $309,900 -5% $1,750 3% 14.76 -1.17
MD $239,990 -13% $1,358 5% 14.73 -2.96
ME $195,000 -3% $925 1% 17.57 -0.55
MI $114,900 -13% $790 5% 12.12 -2.55
MN $167,000 -12% $979 1% 14.22 -2.09
MO $144,900 -6% $750 1% 16.10 -1.23
MS $154,900 -3% $760 0% 16.98 -0.63
MT $259,900 0% $800 3% 27.07 -0.87
NC $189,900 -7% $850 5% 18.62 -2.46
ND $149,900 -8% $620 2% 20.15 -2.12
NE $135,000 -9% $725 1% 15.52 -1.67
NH $229,900 -4% $1,035 4% 18.51 -1.48
NJ $299,000 -9% $1,550 7% 16.08 -2.88
NM $209,000 -7% $820 7% 21.24 -3.27
NV $139,900 -21% $900 -5% 12.95 -2.59
NY $349,000 -3% $2,395 2% 12.14 -0.62
OH $119,900 -13% $725 4% 13.78 -2.67
OK $150,000 -6% $675 6% 18.52 -2.33
OR $228,000 -9% $895 5% 21.23 -3.27
PA $189,900 -9% $1,089 6% 14.53 -2.38
RI $245,000 -11% $1,225 2% 16.67 -2.42
SC $179,900 -8% $810 3% 18.51 -2.13
SD $171,900 0% $735 -8% 19.49 1.52
TN $165,000 -6% $826 5% 16.66 -1.93
TX $174,500 -3% $922 5% 15.77 -1.37
UT $195,000 -11% $829 4% 19.60 -3.28
VA $229,900 -8% $1,373 6% 13.96 -2.20
VT $240,000 -4% $1,300 8% 15.38 -1.98
WA $229,900 -13% $1,070 8% 17.90 -4.28
WI $168,000 -7% $860 4% 16.28 -1.90
WV $150,000 -8% $915 2% 13.66 -1.43
WY $210,000 -2% $795 -6% 22.01 0.98

Source: HotPads.

10 Best Markets for Investors 

Methodology:

*The top 10 states were chosen based on lowest buy-vs.-rent ratios. A low buy-vs.-rent ratio indicates a market that favors buyers. The data was compiled from a sample of 1 million concurrently active rental prices and the for-sale data was calculated from a sample size of 4 million concurrently active for-sale prices on HotPads between April 2010 and April 2011.

Rental and for-sale properties are analzed by state, county, ZIP code, and number of bedrooms — HotPad calculates the average rental and sale prices for a particular size of home in a particular area. The by-bedroom rent ratio is then averaged and weighted by the number of listings, into the final rent-ratio for the area. 

Source: HotPads.

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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