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 In 2021, the following are the top ten best places to buy rental property

Over the last year, the real estate market has shifted dramatically. The coronavirus pandemic has caused a shift in the rental market. This has resulted in hot new housing markets and the demise of long-standing leaders. If you want to invest in residential rental property this year. The following is a list of the top ten best places to buy rental property in 2021.

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The Most Important Factors Affecting Rental Property Investments

There are numerous factors that influence a location's rental market. The sheer number of variables that can have even a minor impact on the performance of a rental property in a given area can be mind-boggling. Some factors have a greater impact on a rental property investment than others. Some examples are:

The demand

Investors want to buy rental property in an area where rental units are in high demand. A variety of factors influence demand, including the unemployment rate, population growth, job opportunities, rental-rate growth, and overall demand for rental units in the current market.

Development Strategy

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Future development projects in the works are usually indicative of a healthy market. Most likely, projects have begun because the area has demonstrated economic promise. This is good news for rental property investors.

On the other hand, a distinct lack of development suggests that the area should be avoided. As a result, you should contact the local county planning department to learn about all of the new projects that are either currently underway or will be soon.

Yield on Rental

The median rental rate helps to support the median home price. The greater the rental yield, the higher the median rental rate relative to the housing cost. The rental yield is calculated as a percentage of the rental income compared to the market value of the property.

The Top Ten Best Places to Buy Rental Property

10.El Paso, Texas

• $195,000 is the average price of a home.
• The average rental price is $823.
• The unemployment rate is 8%.

El Paso's cost of living is among the lowest in the country. One of the area's major selling points for new residents is its affordability. As a result, it is one of the best cities in which to invest in rental property. Fort Bliss, one of the largest military bases in the United States, is located in El Paso. It is heavily backed by the US Department of Defense and the educational industries.

This is a leading market for owning rental property due to below-average median home values, stable appreciation, and year-over-year rental growth.

9.The city of Orlando, Florida

• $275,000 is the average price of a home.
• The median rental rate is $1432.
• The unemployment rate is 4.2 percent.

Florida has been named one of the best places to invest in rental property in 2021. In Orlando, Florida, the demand for single-family homes has skyrocketed. In the last year, rental rates have risen by about 6%. This is expected to continue into 2021, making Orlando one of the best places to invest in rental property.The value of properties in Orlando is expected to rise further as inventory levels fall.

In Orlando, property insurance is extremely affordable. There is also no state income tax. Because of the warm, sunny weather and excellent healthcare, an increasing number of people are deciding to retire in Orlando. Its population is growing by the day.As a result, it is one of the best places to own rental property. Career seekers and students alike are reaping the benefits of higher quality living at a lower cost.

Orlando's job growth is now among the best in the country, with over 45,000 new jobs created in a single year. Housing prices are expected to rise by up to 35% by 2021, rents have risen by 3.44 percent in the last year alone, and the population has grown by 20% since 2010. As a result, Orlando will be one of the best places to buy rental property in 2021.

8.Greensborough, North Carolina

• The median price of a home is $234,934.
• The average rental price is $991.
• The unemployment rate is 6.4 percent.

Greensborough has a diverse economy that includes technology, transportation, and education. As a result, residents have consistent net migration and job opportunities. Unemployment rates are currently higher than national averages. However, the low median housing price in comparison to the median rental rate and rental growth make this a great place to own rental property.Assisting it in breaking into the top ten best rental property markets in the United States.

7.Tucson, Arizona

• $290,000 is the average price of a home.
• The average rental price is $994.
• The unemployment rate is 7.1 percent.

Snowbirds like Tucson because of the warm weather, sunny skies, and little to no snow every year. It is one of the major metropolitan areas that has seen consistent rental-rate growth and home appreciation in the last year. Despite the fact that residents are leaving other large cities.

While unemployment is higher than the national average. Tucson is still one of the best cities in which to own rental property. The city's industries are diverse, including education through the University of Arizona and government or contracting agencies such as Davis-Monthan Air Force Base.

The median home price and rental rates provide opportunities for investors to earn competitive returns. While continuing to see year-over-year increases in rental rates and home appreciation. Assisting it in becoming one of the best investment property locations in the United States.

6.Florida's Tampa Bay

• The average home costs $314,900.
• The average rental price is $1375.
• The unemployment rate is 4.8 percent.

Florida is one of the best states in which to invest in rental property. Tampa Bay, Florida's second-largest metro area, is an appealing rental market for real estate investors. Investors who find the right deal may be able to secure a purchase price that is lower than the national average. The key will be to strike quickly, as Tampa Bay is expected to experience significant population growth in the coming years.

The reason for Tampa Bay's growing population is job growth. The area is home to four Fortune 500 companies, and its thriving economy is worth more than $130 billion.

5.Allentown, Pennsylvania

• The average home costs $159,900.
• The median rental rate is $1241.
• 7.7 percent of the workforce is unemployed.

Allentown's convenient location, commitment to a healthy lifestyle, and arts celebration Make it a great place for people who enjoy an active lifestyle. It's a prime example of how suburban markets surrounding major metropolitan areas are benefiting from the mass exodus from cities.

Allentown, which is only a 90-minute drive from New York City, is experiencing massive rental growth and record demand for rental housing. While I do not believe that economic activity and infrastructure will keep people in the city for the foreseeable future. I believe the rental market will benefit from the short-term trend of city dwellers seeking a taste of small-town life.

4.Albuquerque, New Mexico

• The average home costs $243,300.
• The average rental price is $748.
• The unemployment rate is 8.6 percent.

Albuquerque is New Mexico's economic center, with several universities as well as large contracting and government institutions. Kirkland Air Force Base and Sandia National Laboratories are among those included. The unemployment rate in the city is comparable to the national average. While rental rate growth has been steady, and home appreciation is expected to rise slightly in the coming year.

3.Memphis, Tennessee

• The median price of a home is $155,525
• The average rental price is $887.
• The unemployment rate is 6.5 percent.

Memphis, Tennessee, continues to be one of the best markets for best places to buy rental property. The city has a lower-than-average median home price but a higher-than-average median rental rate. Provides investors with the opportunity to earn above-average returns.

One of the things that makes Memphis so appealing to people looking to relocate there. Is the affordable cost of living. Right now, unemployment rates are competitive with the national average while still achieving a reasonable rate of appreciation. The city's economy is diverse, with jobs in tourism, agriculture, and technology.

2.Alabama's Huntsville

• $265,000 is the median price of a home.
• The median rental rate is $735.
• The unemployment rate is 2.9 percent.

Huntsville, Alabama was named the most affordable place to live by Livability, and Wallet Hub recently named Huntsville one of the Best Cities for Renters. Huntsville is experiencing rapid job growth in the technology and defense industries. The military and NASA's Marshell Space Flight Center are the area's two largest employers.

This, along with several technology start-up companies, has resulted in an increasing number of interesting opportunities in Huntsville. Low tax rates and an expanding rental market are two of the advantages of living in Huntsville. Over the last decade, the population of Huntsville has grown by about 10%.

At the same time, the US population increased by 6%. Many people are moving to Huntsville at a much higher rate than in many other cities in the United States. Huntsville has emerged as one of the best rental markets in 2021, thanks to a plethora of low-cost real estate investment opportunities.

1.Boise, Idaho

• The average home costs $449,900.
• The average rental price is $1047.
• The unemployment rate is 4.3 percent.

Boise has been dubbed the best place in the United States for millennials to live. It is one of the fastest growing in the United States. Recruiting transplants from Washington, California, and Oregon. Boise has proven to be one of the best states in which to invest in rental property.

Because of its low cost of living, thriving tech industry, and easy access to nature. Because of its low crime rate and abundance of outdoor activities, it is frequently praised as a great place to raise a family.

In conclusion

This is a list of the best places in 2021 to buy rental property. Investing in these areas can be extremely profitable. While there can be significant rewards, you should always be cautious and conduct thorough research before investing.