Q2 2015 Rental Ranking Report

This is All Property Management’s Rental Ranking Report for the second 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   Seattle, WA 1 4.00% 11.90% 6.81% 8.95% 3.91% 38 22nd 15th 2nd
2   San Francisco, CA 2 3.70% 15.72% 5.00% 10.84% 2.87% 29 2nd 10th 10th
3   San Jose, CA 3 4.40% 14.94% 3.79% 9.65% 5.74% 27 1st 13th 21st
4   Denver, CO 4 4.30% 9.47% 4.52% 11.61% 2.94% 33 9th 5th 16th
5   Portland, OR 5 3.50% 14.14% 4.69% 8.59% 2.95% 44 34th 22nd 4th
6   Salt Lake City, UT 8 5.30% 5.08% 5.34% 5.04% 4.27% 50 12th 26th 1st
7   Las Vegas, NV 11 7.80% 2.49% 7.46% 9.25% 3.29% 61 58th 8th 8th
8   San Diego, CA 13 2.30% 5.84% 4.52% 4.75% 2.79% 44 62nd 19th 10th
9   Los Angeles, CA 15 3.00% 7.79% 4.03% 6.14% 2.52% 45 55th 38th 16th
10  Sacramento, CA 21 4.70% 5.35% 5.36% 6.26% 2.11% 33 67th 23rd 21st
11  Fresno, CA 23 4.30% 3.35% 5.67% 5.48% 3.07% 52 71st 35th 21st
12  Riverside, CA 25 6.30% 3.85% 5.96% 5.85% 3.71% 62 74th 25th 16th
13  Oxnard, CA 28 3.70% 5.47% 4.05% 4.76% 1.36% 49 40th 40th 21st
14  Honolulu, HI 34 7.50% 8.57% 5.35% 5.47% 1.76% 58 66th 43rd 4th
15  Bakersfield, CA 47 3.70% 1.17% 6.79% 4.38% 1.38% 56 75th 28th 44th
Midwest
1   Columbus, OH 10 5.50% 9.90% 7.77% 4.20% 1.61% 52 23rd 18th 36th
2   Grand Rapids, MI 18 2.50% -0.46% 6.94% 6.65% 1.97% 51 33rd 27th 29th
3   Toledo, OH 27 4.40% 3.65% 9.80% 3.86% 2.32% 68 20th 72nd 41st
4   Indianapolis, IN 30 11.20% 0.74% 8.75% 3.74% 2.36% 67 26th 30th 14th
5   Kansas City, MO 35 5.00% 0.93% 8.23% 5.11% 1.71% 65 29th 41st 49th
6   Omaha, NE 36 6.50% 3.24% 7.39% 4.48% 1.15% 44 27th 33rd 57th
7   Detroit, MI 39 8.50% 0.40% 8.17% 7.06% 2.27% 46 39th 66th 50th
8   Cincinnati, OH 40 15.20% 5.83% 8.16% 3.21% 2.20% 68 35th 48th 26th
9   Minneapolis, MN 42 6.70% 2.03% 6.69% 3.60% 1.66% 51 24th 29th 51st
10  Cleveland, OH 45 6.10% -1.69% 9.50% 5.21% 1.41% 73 25th 70th 29th
11  Akron, OH 48 14.60% 3.86% 7.25% 5.53% 0.00% 66 3rd 59th 32nd
12  St. Louis, MO 51 8.70% 6.13% 8.28% 3.73% 1.38% 70 43rd 63rd 36th
13  Milwaukee, WI 54 4.90% 2.40% 7.07% 3.41% 0.97% 61 28th 60th 46th
14  Chicago, IL 57 7.20% -8.05% 6.91% 4.36% 1.31% 63 15th 58th 41st
15  Dayton, OH 59 7.00% 0.00% 10.58% 3.00% 1.00% 69 18th 73rd 32nd
Southeast
1   Nashville, TN 6 4.80% 9.30% 5.26% 5.26% 3.44% 42 21st 12th 31st
2   Raleigh, NC 7 3.10% 4.02% 5.23% 4.89% 2.84% 59 8th 6th 10th
3   Louisville, KY 12 4.40% 3.61% 7.76% 4.38% 2.97% 62 31st 42nd 10th
4   Atlanta, GA 16 8.40% 11.57% 6.52% 7.98% 2.94% 53 46th 17th 41st
5   Orlando, FL 19 7.00% 5.55% 6.90% 9.69% 4.26% 72 47th 4th 57th
6   Charlotte, NC 26 8.60% 5.10% 6.32% 5.71% 2.36% 67 37th 11th 32nd
7   Tampa, FL 29 8.00% 3.97% 7.87% 9.48% 2.97% 69 53rd 34th 57th
8   Miami, FL 37 5.70% 6.45% 6.55% 10.73% 2.83% 80 73rd 21st 64th
9   Columbia, SC 41 8.10% 8.28% 7.56% 5.21% 1.34% 80 54th 24th 25th
10  Greensboro, NC 50 9.50% 2.25% 7.80% 0.98% 2.64% 92 14th 39th 32nd
11  Jacksonville, FL 53 12.50% 1.54% 6.45% 7.97% 2.40% 73 48th 20th 57th
12  New Orleans, LA 56 9.10% 6.67% 7.70% 5.75% -0.58% 72 68th 32nd 47th
13  Richmond, VA 63 7.40% 2.97% 6.32% 2.87% 0.43% 72 30th 31st 20th
14  Virginia Beach, VA 66 4.60% 1.04% 7.12% 3.36% 0.90% 81 63rd 50th 4th
15  Birmingham, AL 68 18.10% 0.67% 7.65% 4.88% 1.68% 80 56th 51st 40th
16  Memphis, TN 71 11.80% 0.23% 8.71% 4.06% 1.11% 72 41st 71st 51st
17  Baton Rouge, LA 73 8.00% -5.63% 6.30% 3.78% 1.57% 74 60th 46th 44th
Southwest
1   Austin, TX 9 4.50% 4.65% 4.97% 9.85% 3.26% 46 16th 1st 67th
2   Phoenix, AZ 14 6.30% 5.98% 5.85% 5.36% 2.51% 57 51st 7th 3rd
3   Dallas, TX 17 6.20% 5.09% 5.81% 9.44% 3.49% 38 36th 9th 70th
4   Houston, TX 32 7.90% 6.63% 4.96% 10.00% 2.08% 52 59th 3rd 70th
5   Oklahoma City, OK 33 6.80% 3.88% 6.55% 4.61% 1.83% 52 42nd 14th 51st
6   San Antonio, TX 38 9.30% 5.55% 5.65% 7.64% 2.83% 53 61st 2nd 75th
7   Tulsa, OK 43 10.90% 6.05% 7.79% 6.90% 0.52% 59 44th 37th 51st
8   Albuquerque, NM 60 7.70% 5.37% 6.48% 2.24% 1.64% 67 45th 62nd 15th
9   Tucson, AZ 67 7.50% 1.41% 7.29% 3.69% 0.58% 75 64th 47th 9th
10  El Paso, TX 75 8.70% 2.75% 9.27% 0.60% 0.07% 86 72nd 68th 73rd
Northeast
1   Washington, DC 20 5.20% 1.94% 6.17% 3.67% 2.19% 54 6th 16th 16th
2   Boston, MA 22 2.60% 1.17% 6.09% 4.51% 1.87% 59 5th 36th 26th
3   Worcester, MA 24 1.40% 10.66% 6.62% 3.22% 2.09% 72 7th 49th 51st
4   Springfield, MA 31 3.20% 21.20% 6.54% 2.54% 2.09% 75 10th 52nd 56th
5   Baltimore, MD 44 7.30% 3.91% 6.79% 2.62% 1.92% 67 19th 45th 36th
6   Pittsburgh, PA 46 4.40% -0.48% 8.31% 3.59% 2.15% 69 32nd 74th 36th
7   Providence, RI 49 2.40% 8.52% 5.11% 4.15% 1.89% 68 57th 55th 62nd
8   New Haven, CT 52 4.00% 8.60% 7.74% 2.54% 1.22% 76 11th 75th 70th
9   New York, NY 55 4.50% -0.18% 6.58% 3.48% 1.66% 87 13th 53rd 26th
10  Philadelphia, PA 58 6.60% 4.65% 7.71% 3.32% 0.89% 81 50th 57th 4th
11  Rochester, NY 61 5.40% 5.74% 9.58% 1.93% 1.72% 58 69th 67th 69th
12  Buffalo, NY 62 18.70% 9.89% 8.09% 3.86% 1.61% 55 65th 64th 61st
13  Poughkeepsie, NY 64 5.30% 10.93% 8.78% -0.19% 1.78% 130 70th 54th 62nd
14  Allentown, PA 65 3.40% 1.58% 8.23% 1.30% 1.11% 82 38th 56th 48th
15  Hartford, CT 69 5.60% 0.33% 6.63% 2.28% 1.90% 75 17th 69th 64th
16  Syracuse, NY 70 10.30% 11.66% 8.68% 2.39% 0.66% 75 52nd 65th 67th
17  Bridgeport, CT 72 8.70% 5.64% 3.68% 2.18% 1.36% 86 4th 44th 73rd
18  Albany, NY 74 7.90% 8.89% 6.45% 2.20% 0.95% 83 49th 61st 66th

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.