5 best and worst rental return markets | 2014-04-01 | HousingWire

 

 

San Francisco - Bridge

 

Home prices have increased year-over-year for two years straight and do not show any signs of slowing down, the latest CoreLogic report revealed. So how does this impact the rental community and investors?

 

While strong cash-flowing rentals are in many U.S. markets, rising home prices are slowly put a dent in the value.

This follow a strong rise in demand for REO-to-rental securitization.

 

RealtyTrac composed a list of the 5 best and worst markets for rental returns.

 

The list was created by taking the 2014 fair market rent for a three-bedroom home multiplied by 12 months and then dividing that 12-month total by the median sales price of residential properties in the county.

 

Here is what they came up with:

Best:

 

5. Baltimore City County, Md.

 

Media sales price: $85,000

 

The average fair market rent sits at $1,599, and the annual gross yield is 23%.

 

4. Bibb County, Ga.  

 

Median sales price: $50,880

 

On the lower end of the best five, the average fair market rent is $1,008 and the annual gross yield is 24%.

 

3. Washington County, Miss.

 

Median sales price: $42,000

 

The county’s average fair market rent comes in at $862, posting a 25% annual gross yield.

 

2. Clayton County, Ga.

 

Median sales price: $50,750

 

Ranking in at number two, Clayton’s average fair market rent is $1,187, and the annual gross yield is 28%.

 

1. Wayne County, Mich.

 

Median sales price: $44,900

 

As the best rental market for rental returns, Wayne County posts an average fair market rent of $1,124 and an annual gross yield of 30%.

 

skyline
Now for the 5 worst markets for rental returns:

 

5. Marin County, Calif.

 

Median sales price: $745,000

 

The average fair market rent sits at $2,657, while the annual gross yield comes in at 4%.

 

4. Kings County, N.Y.

 

Median sales price: $573,000

 

One of two New York markets on the list, Kings County reported an average fair market rent of $1,852 and an annual gross yield of 4%.

 

3. San Francisco County, Calif.

 

Median sales price: $573,000

 

Significant above number 4, the average fair market rent hit $2,657, with a 4% annual gross yield.

 

2. Eagle County, Colo.

 

Median sales price: $525,000

 

This Colorado market recorded a $1,545 average fair market rent and a 4% annual gross yield.

 

1. New York, N.Y.

 

home

 

Median sales price: $887,000

 

Holding the spot for the worst market for rental returns, New York posted a $1,852 average fair market rent and a 3% annual gross yield.

 

Leave a Reply