5 best and worst rental return markets

Julie C. Nichols General

HousingWire.com – Brena Swanson

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 follows 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

Best:

5. Baltimore City County, Md.

· Median 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%.

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