During the second quarter of 2015, large West Coast cities offered the best return on investment (ROI) for owners and sellers of rental properties.

Four of the top five markets for overall ROI performance last quarter were San Francisco, Seattle, San Jose and Portland, Oregon, according to a report released by All Property Management. Denver occupied the other spot in the top five.

The report finds that the Western U.S. is “by far and away the best region for rental property investment,” citing impressive rent increases and property value appreciation in the region.

Of note is that five California markets ranked in the top 15 for ROI performance. Besides San Francisco and San Jose, other metros included San Diego (11), Los Angeles (13) and Riverside (14). Sacramento also came in at 18.


The top five to 10 cities for ROI consisted of metros often considered secondary markets: Raleigh, North Carolina; Louisville, Kentucky; Minneapolis; Salt Lake City and the late recovering market of Las Vegas.

These rental rankings take into account a number of variables including: vacancy rate, rent variance, cap rates, property appreciation, job growth, days on market, future rental availability, job availability and tax/insurance costs.

All Property Management notes that the previous report saw several small metros — notably Grand Rapids, Michigan and Poughkeepsie, New York — attain high ROI rankings. During the second quarter, however, smaller, tertiary-type markets especially in the Northeast occupied the bottom of the ROI rankings.

Poughkeepsie, Albany and Syracuse, New York, along with Hartford, Connecticut, ranked as some of the lowest-performing markets. The report cites woeful property value appreciation and job growth in these areas. Other markets offering unattractive ROI included New Orleans and El Paso, Texas.

The report eyes 75 metros. For a detailed list, visit: www.allpropertymanagement.com/rental-ranking/2015-q1.

Email Erik Pisor.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Las Vegas is back and there are only a few presale tickets left! Register today before they're gone.REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription