Dallas, TX: Rental Property ROI Analysis
|75 US City Avg.
A city that offers a unique blend of Southwestern hospitality, cosmopolitan flair, old west charm and all the modern amenities one would expect of a major metropolis, Dallas consistently ranks among the top cities in the country on a wide range of best of the best lists. A ranking by Forbes as No. 4 on the list of U.S. Fastest-Growing Cities of 2014 and a No. 1 placement among the Top 10 Most Affordable Housing Markets are just two of many accolades for this great city.
If these awards are not enough to compel you to invest in a home or condo in Dallas, All Property Management Q2 2014 Rental Ranking Report ranked Dallas as the TOP #1 BEST CITY for investment in rental real estate in the Southwest. Dallas moved up to the top spot after a second-place showing last quarter.
What data is this based on?
To calculate the All Property Management Rental Ranking Report, we explore a number of different sources, including current government housing and jobs data, as well as housing appreciation forecasts for 75 cities across the United States. We look at specific factors such as home vacancy rates, capitalization rates, home value appreciation rates, annual job growth, change in rental rates, and average days a property stays on the market to determine which U.S. cities are poised to give investors the highest return on their rental investment.
Dallas, Texas performs well in the majority of the Rental Ranking Report categories, with the exception of home value appreciation. Overall, however, the Dallas real estate market is booming, with properties sitting on the market an average of only 49 days before being sold. This places the city 8th among the 75 Metropolitan Statistical Areas that All property Management evaluates for the Rental Ranking Report. Another indication that the rental market is hot is a 3.01 percent year-over-year increase in rental rates. And, with job growth increasing 3.64 percent over the last year, investors can expect that demand for rental housing will continue. A vacancy rate of 8.9 percent and a capitalization rate of 7.55 percent are relatively average compared to the other cities.
What does a high-ranking mean?
Is owning a rental property in Dallas profitable?
Quite simply, there has never been a better time to consider rental property investment in Dallas and the surrounding areas. Strong activity in the real estate market matched with excellent job growth makes renting out your Dallas property an income-generating opportunity.
Thinking about renting out your Dallas property? Seek the assistance of a local, qualified property manager and automate your rental profit.
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Our team at All Property Management specializes in connecting property owners with property agents in communities across the country. Expert property managers can assist with setting rental rates, advertising your property, screening and managing tenants, collecting rent, managing vendor relationships, and ensuring you are complying with local, state, and federal housing regulations, thus taking the hassle and worry out of managing your property. We look forward to working with you and welcome the opportunity to help you with all your property management needs.