Rochester, N.Y., and the Florida cities of Fort Lauderdale, Orlando and Tampa have ranked in the top 10 best housing markets for investors in rental property, according to a report released today by HomeVestors of America, a property investment firm, and Local Market Monitor, a real estate data firm. The winners are generally in markets where home prices have fallen substantially, including Las Vegas, Detroit, Tampa and Phoenix.
Las Vegas, where home prices are down by more than 50 percent from their market peak, took the top spot in the list, offering the best returns on homes maintained as rental properties, according to the report, which took into account the potential home price appreciation and gross rents.
Predominantly a retirement market, home prices fell 10 percent in Tampa in the last 12 months due to over-supply of investment properties built during the boom.
Ingo Winzer, president and founder of Local Market Monitor, said: “Home prices in these markets also are below-average, so empty homes are easily turned into competitive rental properties. But there is also extra risk in these markets.”– Katherine Clarke