In 2023, economic uncertainties and rising costs slowed the homebuying market. Although inflation and interest rates have stabilized in 2024, ushering consumers back to the market, U.S. housing affordability remains near an all-time low. This has driven many Americans to enter or remain within the single-family home rental market.
While fix and flip investments remain highly profitable, with a 27.5% ROI on average, many savvy investors have read the tea leaves and pivoted to the single-family rental market. In the latest CoreLogic Single-Family Rent Index, single-family rents increased by 3.2% this May–the highest rate of growth in over a year.
With many American families opting to rent, and considering the current rental market analysis, a strong single-family rental market has emerged. This market is poised to maintain high demand with steady price increases.
Locating the Top Rental Property Investment Opportunities
Since the timing is ideal, investors have begun scouring the market in search of the best rental investment opportunities. With current economic conditions and evolving regulatory challenges in the residential rental property market, investors formulating a single-family rental investment strategy must consider four aspects:
- Job Market
- Housing Affordability
- Residential Growth
- Unemployment Rates
Fortunately, Roc Capital has compiled a list of the best single-family rental markets with bustling job markets, growth, affordability, and economic prosperity:
Ocala, Florida
Located in the heart of Florida, Ocala suburbs offer a unique gateway to seclusion with all that Florida has to offer simply a car ride away. With a median home price 21% lower than the national average, it’s no wonder Ocala has seen impressive population growth over the past ten years.
Here are the top reasons Ocala has become a single-family rental market hotbed:
- Affordable Real Estate Prices: As mentioned, Ocala has an unusually affordable real estate market, with a median home price of $273,400–much lower than national ($346,000) and Florida ($389,000) averages.
- Population Growth: While real estate prices alone are reason enough for residents to flock to the city, Ocala’s location is also a driving force. With proximity to theme parks, major cities, and beaches, the city’s locale in central Florida makes it a popular spot for young families.
- Home & Rental Appreciation: Over the last decade, Ocala has experienced a home price appreciation of over 135% and a rent appreciation of over 82%. This rapid growth, along with the city’s lower cost of living, makes it the ideal location for investors looking to enter the single-family rental market.
Rental Property Numbers
- Median Home Price: $273,400
- Median Rent Price: $1,552
- Rent Appreciation Year-over-Year (YoY): 6.92%
- Job Growth Rate: 1.35%
- Unemployment Rate: 3.7%
Dallas, Texas
Here are some of the top reasons why Dallas is home to one of the best single-family rental markets:
- Strong Job Market: Dallas has transformed from an oil town to a diversified economy, with major industries like technology, finance, and healthcare moving into the city. This influx of business has contributed to the growing population as well as low unemployment rates.
- Growing Population: Dallas continues to grow, with the city’s population expected to increase by over 1.5 million over the next ten years. Rapid population growth, along with a strong job market, further cement strong rental market projections for the city.
- Positive Rental Market Forecast: With a large inventory of affordable single-family homes–as well as townhomes, apartments, office buildings, shopping centers, and industrial properties–Dallas has maintained a steady increase in home values and rental rates over the past ten years.
Rental Property Numbers
- Median Home Price: $366,326
- Median Rent Price: $1,787
- Rent Appreciation Year-over-Year (YoY): 4.07%
- Job Growth Rate: 3.46%
- Unemployment Rate: 3.3%
Boise, Idaho
As the capital city of Idaho, Boise has become a popular destination for renters. With exciting entertainment, a strong job market, and affordable housing, what’s not to love?
As for rental property investment opportunities, here are the top reasons why Boise is a great location:
- Real Estate Appreciation: Over the past ten years, Boise’s real estate market has boasted sustained growth, with a home appreciation rate of over 217%–an average annual rate of 12.26%. Additionally, the towns and neighborhoods just outside of downtown Boise that make up its single-family rental market have shown rates as high as 17%.
- Strong Job Market: Boise has a thriving economy fueled by its local university and education market, along with a robust tech and healthcare industry presence. A growing job market spells new residences, housing demand, and property value increases.
- Growing Population: Residents rank Boise as providing a high quality of life. With outdoor recreational opportunities and affordable living costs, Boise has maintained steady population growth.
Rental Property Numbers
- Median Home Price: $407,906
- Median Rent Price: $1,800
- Rent Appreciation Year-over-Year (YoY): 3.1%
- Job Growth Rate: 3.21%
- Unemployment Rate: 3.2%
