When it comes to the US rental property, Florida metros regularly feature as the best. Homes in the Sunshine State offer investors cash flow and equity growth and bring together the ideal investment criteria. In 2020, three Florida cities took the top three positions in the US.
Essential features for US rental property
The RealWealth portal recently released its listing of the 18 best places for US rental property in 2020. Using the dual criteria of potential for cash flow from buy-to-let and equity growth, the report examined cities across the country in search of those offering the highest.
In each of the cities, the listing also looked at the employment situation, population growth and affordability. This trio is essential for prudent investment since they ensure potential for rental income as well as low outlay.
The conclusions of the report were resounding. Florida cities take the top three positions – Orlando, Tampa and Jacksonville – as the best places to buy US rental property this year.
Orlando best place of all
Florida’s theme park capital is no stranger to investment potential and regularly tops ranking for the best. When it comes to US rental property in 2020, Orlando stands out against all the competition.
RealWealth finds that the so-called ‘sun belt’ of Florida appeals to multiple demographics of rental demand. Job seekers, baby boomers and retirees are all drawn to the “cheap and cheerful” Orlando where they can enjoy a “high quality lifestyle at a reasonable cost”.
According to the report, the average 3-bedroom single-family property in Orlando costs US$231,000, some 4% higher than the national average. However, it points out that property in certain areas is considerably cheaper. Average monthly rent comes in at US1,300.
Tampa takes second place
Tampa also regularly ranks among the best places to buy US rental property and takes second position in this year’s list. Investment potential highlights in this part of Florida include the job opportunities available in Tampa Bay, one of the state’s employment hotspots. Four Fortune 500 companies are based in the metro area and the population also increases at a higher than average rate.
Single-family home properties in Tampa cost an average of US$225,250, slightly higher than the national average. Investors can expect an average of US1,485 in rental income a month.
Jacksonville is third best place
Completing the Florida hat trick is the northeast city of Jacksonville. This metro area excels in employment opportunities and posts impressive job growth. No less than 13 Forbes Global 500 have operations in the city, also known for its bioscience sector. Healthcare is also a major area of growth and the city has more than 20 hospitals.
Jacksonville property is much more affordable than in many parts of Florida. A 3-bedroom single-family home costs an average of US$189,000, some 15% below the national average. Monthly rental rates come in at US$1,409.
Impressive equity growth
When buying US rental property, equity growth is a prime consideration. All three Florida cities offer much higher than average potential in this department. Property owners in Orlando could see 110% equity growth over seven years, 99% above the national rate.
Tampa property also has excellent potential for equity increase. Homes here may experience 106% growth in seven years, 93% more than in the US generally. And in Jacksonville, equity growth in the next seven years could reach 75%, over a third higher than the national average.
Consistent population growth
Florida offers affordable lifestyle, great weather and stunning natural surroundings. This combination along with excellent employment opportunities means that the state receives over 900 new residents every day.
Population growth is particularly strong in the top three Florida cities for US rental property this year. Orlando is forecast to grow by 20.26% over the next eight years, 252% more than the national average of 5.76%. Tampa’s population is expected to increase by 106% and Jacksonville’s by 14.75%.
The right trio
Strong job creation also fuels demand for rental properties and Florida is one of the best performing states in the US. Employment grew by 3.44% in a year in Orlando, 134% more than the national rate. Tampa’s and Jacksonville’s job creation rates were 2.52% and 3.11% respectively.
The report clearly shows the wisdom of looking at Florida for buy-to-let properties in the US. Orlando, Tampa and Jacksonville offer the right combination for investors and at affordable prices.
The US rental property owned by BRIC Group goes one step further – many units on our books come with 2-year rental guarantees. With prices starting at just US$102,000 and properties in all the right locations, they make an excellent addition to any investment portfolio.