Property investors should head to Florida for the best returns on their cash according to a new analysis
Online property investment management firm HomeUnion reveals that the Sunshine State is home to three of the top five zip codes for the best returns on home investments.
The analysis looks at 20 metros and assesses the attractiveness of investing in single-family rentals (SFRs) over 5 years. It also looks at the quality of schools in the area due to their impact on the housing market.
“Typically, SFRs in areas with good schools have been attractive to long-term investors, though those areas have been more challenging to locate for remote investors in today’s heated housing market,” explained Steve Hovland, director of research for HomeUnion.
Florida’s Hamptons at Boca Raton in the West Palm Beach tops the best-investment ranking, specifically the 33434 zip code, which offers an annualized total return of 8.1%, well above the 6.1% of the second-placed 19035 zip code of Gladwyne, Philadelphia.
Here’s the entire top 20:
|
Zip Code |
Submarket |
Metro Area |
Annualized Total Return* |
School Rating |
|
33434 |
Hamptons at Boca Raton, Fla. |
West Palm Beach |
8.1 |
87.9 |
|
19035 |
Gladwyne, Penn. |
Philadelphia |
6.9 |
86.9 |
|
48322 |
West Bloomfield Township, Mich. |
Detroit |
6.9 |
74.4 |
|
33158 |
Palmetto Bay, Fla. |
Miami |
6.8 |
83.9 |
|
33327 |
Weston, Fla. |
Fort Lauderdale, Fla. |
6.6 |
70.5 |
|
37062 |
Fairview, Tenn. |
Nashville |
6.5 |
70.6 |
|
66223 |
Overland Park, Kan. |
Kansas City |
6.2 |
97.4 |
|
60016 |
Des Plaines, Ill. |
Chicago |
6.0 |
76.4 |
|
45255 |
Forestville/Cherry Grove |
Cincinnati |
5.9 |
75.7 |
|
30078 |
Snellville, Ga. |
Atlanta |
5.8 |
72.5 |
|
97224 |
King City, Ore. |
Portland, Ore. |
5.8 |
81.9 |
|
34677 |
Oldsmar, Fla. |
Tampa |
5.7 |
78.6 |
|
44023 |
Chagrin Falls, Ohio |
Cleveland |
5.6 |
70.8 |
|
75022 |
Flower Mound, Texas |
Dallas |
5.6 |
84.0 |
|
77059 |
Clear Lake City, Texas |
Houston |
5.6 |
76.0 |
|
85259 |
North Scottsdale, Ariz. |
Phoenix |
5.5 |
88.0 |
|
63043 |
Maryland Heights, Mo. |
St. Louis |
5.5 |
71.9 |
|
73003 |
Edmond, Okla. |
Oklahoma City |
5.4 |
90.0 |
|
91602 |
North Hollywood, Calif. |
Los Angeles |
5.4 |
71.4 |
|
46280 |
North Indianapolis |
Indianapolis |
5.4 |
71.9 |
*Total return includes projected appreciation and cash flow based on HomeUnion’s proprietary underwriting methodology. Sources: HomeUnion Research Services, Maponics
