Investors take note: Atlanta and Houston offer rental opportunities

  • Markets where prices are far above the average have limited opportunity and affordability for both investors and homebuyers.

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

If you are a single-family home investor, it’s time to look away from coastal markets. Data released last week from Attom Data Solutions, identified the top 25 U.S. ZIP codes for buying single family rental homes in Q3 2017 based on rate of return and other factors. The top 25 list includes ZIP codes in Atlanta, Houston, Central Florida and Dallas. The ZIP code with the the highest potential annual gross rental yield was 30238 in Atlanta at 17.7 percent, followed by 77373 in Houston with 13.5 percent and 34472 in the Ocala, Florida-metro area at 13.1 percent. All of the top 25 had rental yields of 10 percent or higher, delivering a potential annual cash flow of $10,000 or more for a cash buyer after property taxes, insurance, maintenance and other property management costs. Attom Data looked at potential rental yields and cash flow, vacancy rates, home price appreciation, population growth, neighborhood quality and average property age across 4,854 U.S. ZIP codes and 439 ...