Q1 2015 Rental Ranking Report

This is All Property Management’s Rental Ranking Report for the first quarter of 2015. Below you’ll find measures of the attractiveness of real estate investment in 75 U.S. metropolitan areas. The higher a metropolitan area’s ranking, the better the ROI for rental housing within it.

To learn more about the rental markets of the metropolitan areas listed below, click on their names. Click here to get more information about the Rental Ranking Report, including explanations of the nine metrics it contains.

National rental housing market trends: It’s a wonderful time to own rental housing. Between the U.S. homeownership rate reaching its lowest point in 20 years, falling vacancy rates and rents that, while rising significantly faster than a year ago, are still increasing at approximately half the rate of the median U.S. home price, purchasing rental housing is a sound and lucrative investment in most of the country.

Top performing metros: The previous iteration of this report saw a number of relatively small and unheralded metropolitan areas, most notably Grand Rapids, MI and Poughkeepsie, NY, attain high Rental Rankings. This trend has since been reversed; the top spots for both the national and regional rankings are now dominated by much larger metropolitan areas like Minneapolis, MN and New York, NY. Big cities along the West Coast, specifically San Francisco, Seattle, San Jose and Portland, are disproportionately represented at the top of the Rental Rankings, as they occupy four of the top five national rankings.

Top performing regions: The Western U.S. is currently by far and away the best region for rental property investment, thanks largely to the impressive rent increases and property value appreciation found there. Conversely, the Northeastern states are the least attractive for rental property investment, mainly due to woeful property value appreciation and job growth in its metropolitan areas. The average national Rental Rankings, broken down by region, are as follows: West (16), Southwest (35), Midwest (38), Southeast (39) and Northeast (56).

Rental Ranking Report additions: Three new metrics were added to this iteration of the Rental Ranking Report. These metrics, the Future Rental Availability Index, the Job Availability Index and the Tax & Insurance Cost Index, serve to help this report better determine what rental markets offer the best ROI - both at the present and in the future. Visit the Rental Ranking Report home page to learn more about these metrics.

About us: All Property Management helps rental property owners maximize their rental income potential by connecting them with professional property management companies. Learn more about All Property Management here.


Regional Ranking National Ranking Vacancy Rate Rent Variance Capitalization Rate Property Appreciation Job Growth Days on Market Job Avail. Rank1 Rental Avail. Rank2 T & I Cost Rank3
West
1   San Francisco, CA 1 3.60% 5.45% 5.20% 11.15% 3.51% 26 4th 8th 10th
2   Seattle, WA 2 5.00% 27.12% 7.25% 8.21% 3.39% 37 19th 10th 2nd
3   Denver, CO 3 3.80% 12.77% 4.24% 10.18% 3.89% 37 8th 11th 16th
4   San Jose, CA 4 5.40% 2.31% 6.78% 3.05% 2.43% 25 1st 24th 21st
5   Portland, OR 5 2.70% 2.38% 5.04% 9.03% 3.13% 46 33rd 23rd 4th
6   Salt Lake City, UT 9 5.20% 2.66% 5.56% 5.11% 2.75% 51 11th 32nd 1st
7   Las Vegas, NV 10 7.20% -0.92% 7.98% 12.66% 3.09% 61 45th 20th 8th
8   San Diego, CA 11 4.60% 3.00% 4.98% 6.05% 3.04% 43 65th 17th 10th
9   Los Angeles, CA 13 3.80% 1.70% 4.35% 7.85% 2.71% 41 68th 4th 16th
10  Riverside, CA 14 6.40% 2.97% 6.03% 9.83% 4.39% 61 75th 15th 16th
11  Sacramento, CA 18 4.30% 1.27% 5.68% 7.14% 3.05% 48 64th 26th 21st
12  Fresno, CA 28 8.20% 2.59% 6.08% 7.65% 4.29% 51 70th 42nd 21st
13  Bakersfield, CA 29 4.30% 2.12% 7.10% 9.73% 2.19% 53 73rd 40th 44th
14  Oxnard, CA 31 4.30% 5.29% 4.11% 6.55% 1.59% 45 63rd 48th 21st
15  Honolulu, HI 60 9.00% -0.56% 5.74% 5.53% 1.16% 56 71st 47th 4th
Midwest
1   Minneapolis, MN 8 4.40% 5.36% 6.95% 5.11% 2.10% 43 22nd 19th 51st
2   Indianapolis, IN 18 7.20% 1.72% 8.98% 3.84% 2.97% 73 29th 28th 14th
3   Akron, OH 26 3.50% 3.46% 11.73% 3.64% 1.17% 88 2nd 64th 32nd
4   Columbus, OH 30 7.40% 1.09% 8.43% 4.51% 2.54% 74 21st 27th 36th
5   Cincinnati, OH 36 10.60% 5.25% 8.68% 5.07% 1.63% 75 37th 39th 26th
6   Grand Rapids, MI 37 9.10% -0.46% 7.50% 6.96% 2.21% 61 41st 38th 29th
7   Detroit, MI 39 7.20% 0.50% 8.87% 9.64% 2.15% 57 59th 65th 50th
8   Chicago, IL 40 8.90% 4.66% 7.14% 5.47% 1.39% 59 52nd 33rd 41st
9   Omaha, NE 40 7.60% 2.05% 7.90% 3.31% 1.70% 52 15th 41st 57th
10  Kansas City, MO 43 11.30% -1.77% 8.23% 4.69% 3.00% 67 23rd 31st 49th
11  Cleveland, OH 44 4.10% 1.77% 10.08% 4.27% 1.11% 101 25th 73rd 29th
12  Milwaukee, WI 44 4.90% 3.91% 7.30% 3.63% 1.05% 59 30th 59th 46th
13  Dayton, OH 53 9.40% 2.26% 11.35% 2.87% 1.52% 91 16th 72nd 32nd
14  St. Louis, MO 56 8.60% 0.00% 8.59% 4.37% 1.10% 68 35th 56th 36th
15  Toledo, OH 61 11.50% 0.82% 9.97% 5.79% 0.34% 85 26th 71st 41st
Southwest
1   Austin, TX 12 6.60% 3.78% 4.97% 10.57% 2.81% 48 14th 12th 67th
2   Phoenix, AZ 17 8.10% 0.92% 5.93% 7.05% 3.09% 57 47th 6th 3rd
3   Dallas, TX 22 7.60% 1.15% 5.77% 9.51% 4.04% 46 38th 2nd 70th
4   Oklahoma City, OK 23 4.70% 3.61% 6.69% 6.73% 2.38% 59 34th 29th 51st
5   Tulsa, OK 32 9.20% 6.00% 8.27% 4.16% 1.75% 55 24th 45th 51st
6   Houston, TX 33 9.70% 2.77% 4.90% 11.02% 3.28% 52 55th 1st 70th
7   Tucson, AZ 42 9.70% 2.96% 7.16% 5.33% 1.34% 68 49th 50th 9th
8   San Antonio, TX 47 9.60% 2.10% 5.65% 5.61% 3.65% 59 57th 13th 75th
9   Albuquerque, NM 52 7.30% -1.55% 6.98% 3.13% 1.65% 62 28th 62nd 15th
10  El Paso, TX 73 9.10% 5.99% 9.51% 1.99% 0.26% 81 72nd 66th 73rd
Southeast
1   Raleigh, NC 6 4.80% 7.63% 5.62% 5.78% 3.49% 61 5th 25th 10th
2   Louisville, KY 7 3.80% 3.92% 8.35% 3.72% 3.86% 68 27th 43rd 10th
3   Atlanta, GA 15 9.50% 2.45% 6.93% 8.87% 3.89% 53 46th 7th 41st
4   Tampa, FL 18 4.00% 1.11% 8.61% 8.46% 2.53% 66 50th 21st 57th
5   Nashville, TN 21 7.00% 0.08% 5.33% 7.74% 2.75% 50 18th 22nd 31st
6   Orlando, FL 25 9.20% 1.67% 7.52% 9.84% 4.29% 68 39th 14th 57th
7   Charlotte, NC 27 7.40% 2.74% 6.55% 4.86% 2.92% 63 36th 16th 32nd
8   Miami, FL 35 6.30% -0.41% 6.95% 12.17% 3.66% 71 74th 9th 64th
9   Richmond, VA 46 6.50% 0.93% 6.76% 4.36% 1.09% 65 32nd 36th 20th
10  Memphis, TN 49 8.20% 6.74% 9.26% 4.64% 1.49% 89 43rd 69th 51st
11  Columbia, SC 50 5.30% -1.88% 7.92% 4.04% 2.10% 88 51st 46th 25th
12  Jacksonville, FL 51 12.20% 0.00% 6.61% 8.13% 2.38% 70 40th 30th 57th
13  Birmingham, AL 55 13.10% 4.13% 7.65% 5.99% 1.85% 92 58th 53rd 40th
14  Greensboro, NC 58 17.90% -0.68% 8.22% 1.78% 3.41% 114 13th 49th 32nd
15  Baton Rouge, LA 63 7.40% -0.28% 6.56% 3.75% 2.52% 82 44th 52nd 44th
16  Virginia Beach, VA 64 8.60% -2.05% 7.23% 4.52% 0.68% 81 62nd 44th 4th
17  New Orleans, LA 72 12.50% 0.24% 7.86% 4.43% 0.33% 76 61st 37th 47th
Northeast
1   Washington, DC 15 4.60% -0.94% 6.35% 5.70% 1.49% 49 12th 5th 16th
2   Boston, MA 23 4.10% 2.54% 6.25% 5.92% 1.16% 72 9th 18th 26th
3   New York, NY 34 3.10% 2.43% 7.02% 3.46% 1.80% 100 60th 3rd 26th
4   Worcester, MA 38 4.50% 8.82% 6.90% 3.83% 1.81% 110 7th 55th 51st
5   Bridgeport, CT 48 4.40% 11.63% 3.70% 3.05% 1.64% 72 3rd 51st 73rd
6   Philadelphia, PA 53 9.80% 1.84% 8.07% 2.90% 1.64% 91 54th 35th 4th
7   New Haven, CT 57 7.50% 7.62% 8.26% 1.29% 1.65% 95 10th 74th 70th
8   Baltimore, MD 59 9.20% -1.56% 7.15% 3.20% 1.66% 78 20th 34th 36th
9   Rochester, NY 62 6.40% 4.77% 9.85% 2.11% 0.68% 64 69th 61st 69th
10  Providence, RI 65 3.50% 3.43% 5.47% 4.41% 1.41% 95 56th 57th 62nd
11  Allentown, PA 66 3.50% -0.46% 8.60% 1.79% 1.29% 104 53rd 60th 48th
12  Buffalo, NY 67 10.20% 7.56% 8.65% 3.34% 1.31% 68 66th 67th 61th
13  Springfield, MA 68 5.20% -3.10% 6.85% 1.22% 1.81% 114 6th 63rd 56th
14  Pittsburgh, PA 69 9.50% -0.28% 8.88% 4.17% 0.84% 122 31st 75th 36th
15  Poughkeepsie, NY 70 4.60% -5.38% 9.49% 3.46% 1.71% 133 67th 54th 62nd
16  Hartford, CT 71 4.00% -2.20% 6.90% 1.57% 1.62% 95 17th 70th 64th
17  Albany, NY 74 9.60% 4.15% 6.19% 0.75% 1.83% 119 42nd 58th 66th
18  Syracuse, NY 75 12.10% -1.08% 8.91% 3.59% 0.59% 111 48th 68th 67th

1: Job Availability Index. Ranks metropolitan areas by the ratio of population to current job openings.

2: Future Rental Availability Index. Ranks metropolitan areas by comparing their population growth to the amount of housing under construction within them.

3: Tax and Insurance Cost Index. An aggregate ranking of annual homeowner insurance premiums and property taxes.

Learn more about these Rental Ranking metrics here.