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The Top 10 Fastest Growing Rental Markets in the US 2022

If you’re looking for new places to invest in 2022, continue reading to discover the fastest growing rental markets in the US.

Table of Contents

  1. Where Is Real Estate Booming? Here Are the Top 10 Fastest Growing Rental Markets
  2. Tips for Traditional Rental Properties
  3. Conclusion

Investing in up-and-coming cities is an excellent way to increase your profits in real estate. In this article, we will look at some of the best locations to look into this year for traditional rental properties.

Where Is Real Estate Booming? Here Are the Top 10 Fastest Growing Rental Markets

Traditional rental properties provide a consistent income stream for investors looking to make money in real estate. Listed below are the top 10 fastest growing rental markets in the US where investors can take advantage of a real estate boom and expand their portfolio.

1. Austin, Texas

  • Number of Listings for Sale: 250
  • Median Property Price: $808,163
  • Average Price per Square Foot: $467
  • Number of Traditional Listings: 2,964
  • Monthly Traditional Rental Income: $2,118
  • Traditional Cash on Cash Return: 0.84%
  • Traditional Cap Rate: 0.86%
  • Price to Rent Ratio: 32
  • Days on Market: 60
  • Walk Score: 50

Austin, Texas is one of the fastest growing real estate markets in 2022. The city would be an excellent place to invest in a traditional rental property. People of all ages are drawn to the city for the schools, such as the University of Texas, and local business opportunities. There are plenty of things to do downtown, including shopping, restaurants, and entertainment.

Austin’s year-round warm weather attracts people looking to escape the winter months on the East Coast. The city’s real estate data shows promising investment opportunities in the next few months. Explore the different neighborhoods in the area to find the most successful traditional rental property.

2. Raleigh-Durham, North Carolina

  • Number of Listings for Sale: 2,492
  • Median Property Price: $613,375
  • Average Price per Square Foot: $162
  • Number of Traditional Listings: 1,818
  • Monthly Traditional Rental Income: $1,866
  • Traditional Cash on Cash Return: 2.07%
  • Traditional Cap Rate: 2.12%
  • Price to Rent Ratio: 27
  • Days on Market: 63
  • Walk Score: 32

Next up on our fastest growing rental markets in the US is Raleigh-Durham, North Carolina. Raleigh-Durham is a rising real estate market as students are moving to the area to attend one of the many universities in the city. North Carolina offers plenty of opportunities for employment. Some of the biggest companies in the area include Amazon and Apple. The two businesses combined create thousands of job opportunities in the area.

Raleigh-Durham would be an excellent option for investing in a traditional rental property as people are constantly looking for a long-term place to stay. Whether they are students or people relocating for work, it is likely your property will attract renters any time of the year. Find plenty of traditional listings for sale for you to begin your investment journey.

3. Orlando, Florida

  • Number of Listings for Sale: 658
  • Median Property Price: $499,170
  • Average Price per Square Foot: $273
  • Number of Traditional Listings: 2,553
  • Monthly Traditional Rental Income: $1,906
  • Traditional Cash on Cash Return: 2.41%
  • Traditional Cap Rate: 2.49%
  • Price to Rent Ratio: 22
  • Days on Market: 49
  • Walk Score: 42

Another one of the best housing markets in the US is Orlando, Florida. Orlando offers an endless amount of attractions, including Disney World, Sea World, and Universal Studios. People are looking to move to the area to be close to all of the action year-round.

Orlando is one place to look for traditional rental properties because families are always looking to move to the area with their kids. Additionally, the amusement parks in the city offer plenty of job opportunities to people looking for a long-term place to stay.

Related: Florida Real Estate Market 2022 Outlook

4. Houston, Texas

  • Number of Listings for Sale: 1,833
  • Median Property Price: $485,246
  • Average Price per Square Foot: $240
  • Number of Traditional Listings: 4485
  • Monthly Traditional Rental Income: $2,205
  • Traditional Cash on Cash Return: 2.21%
  • Traditional Cap Rate: 2.27%
  • Price to Rent Ratio: 18
  • Days on Market: 48
  • Walk Score: 43.29

Houston, Texas is also one of the fastest growing rental markets in the US. The city offers a metropolitan feel, with many neighborhoods known for unique attractions that contribute to its overall draw.

Houston enjoys a thriving job market with plenty of opportunities available to people of all ages. More than 30 different colleges are located in the city, creating job opportunities for both professors, students, and anyone looking to help run the schools. It is why individuals and families are moving to Houston’s neighborhoods. Consider Houston for your next traditional rental investment property.

5. Charleston, South Carolina

  • Number of Listings for Sale: 421
  • Median Property Price: $1,517,504
  • Average Price per Square Foot: $604
  • Number of Traditional Listings: 538
  • Monthly Traditional Rental Income: $3,089
  • Traditional Cash on Cash Return: 1.11%
  • Traditional Cap Rate: 1.13%
  • Price to Rent Ratio: 41
  • Days on Market: 95
  • Walk Score: 41.65

Charleston is one of the fastest growing housing markets due to its location near the ocean. The city is located close to the ocean, making it a desirable location for people looking to live on the beach. Residents can partake in several activities downtown, such as shopping and dining out. The luxury shopping centers and trendy restaurants create endless job opportunities for people relocating to live closer to the ocean.

The traditional rental income is also quite high in Charleston at around $3,089 per month. It will help ensure a profitable return on investment.

6. Sarasota-Bradenton, Florida

  • Number of Listings for Sale: 372
  • Median Property Price: $1,669,608
  • Average Price per Square Foot: $607
  • Number of Traditional Listings: 1,210
  • Monthly Traditional Rental Income: $1,210
  • Traditional Cash on Cash Return: 1.83%
  • Traditional Cap Rate: 1.88%
  • Price to Rent Ratio: 43
  • Days on Market: 51
  • Walk Score: 50

The next city in our fastest growing rental markets in the US is Sarasota, Florida. The area is located right on the coastline, so residents can go to the beach whenever they want. It is also a city known for boating activities, which draws people looking to experience the boating weather year-round.

The city’s school districts are one of the top employers in the area. It can be an excellent place for teachers looking for a new job opportunity.

Sarasota is a great location for a traditional rental property as people are relocating to the area for job opportunities and to experience the year-round beautiful boating weather.

7. San Antonio, Texas

  • Number of Listings for Sale: 2182
  • Median Property Price: $350,990
  • Average Price per Square Foot: $215
  • Number of Traditional Listings: 6915
  • Monthly Traditional Rental Income: $1,543
  • Traditional Cash on Cash Return: 1.67%
  • Traditional Cap Rate: 1.71%
  • Price to Rent Ratio: 19
  • Days on Market: 54
  • Walk Score: 37

San Antonio can be the best place to buy rental property for investors. The city is home to one of the largest military bases in the US. It means families are constantly moving to the city looking for a long-term place to stay. Additionally, the city’s three military bases provide lots of job opportunities for local residents.

Additionally, San Antonio has plenty of employment opportunities for people in the healthcare and tourism business. Consider the city for your next traditional rental.

8. Dallas-Fort Worth, Texas

  • Number of Listings for Sale: 6
  • Median Property Price: $710,983
  • Average Price per Square Foot: $461
  • Number of Traditional Listings: 0
  • Monthly Traditional Rental Income: $1,600
  • Traditional Cash on Cash Return: 0.48%
  • Traditional Cap Rate: 0.50%
  • Price to Rent Ratio: 37
  • Days on Market: 39
  • Walk Score: 12

Next on our list of fastest growing rental markets in the US is Dallas-Fort Worth in Texas. It is one of the largest cities in the US, offering lots of amenities to its residents. For leisure, there are shopping, entertainment, and various dining options for the local population to take advantage of.

The city is also home to the headquarters of many large companies. AT&T, American Airlines, and Southwest Airlines are headquartered in Dallas-Fort Worth. People in the technology or air travel business can benefit from the employment opportunities by the said companies.

People are looking to move to the city to explore all of the activities downtown, as well as take part in the job opportunities found in the city.

Related: The Best Rental Markets in Texas: The 2022 Guide

9. Phoenix, Arizona

  • Number of Listings for Sale: 865
  • Median Property Price: $718,982
  • Average Price per Square Foot: $357
  • Number of Traditional Listings: 5706
  • Monthly Traditional Rental Income: $2,294
  • Traditional Cash on Cash Return: 2.13%
  • Traditional Cap Rate: 2.16%
  • Price to Rent Ratio: 26
  • Days on Market: 62
  • Walk Score: 28

Phoenix is another fastest growing rental market in the US. The city accounts for a large portion of Arizona and is also called the “Valley of the Sun.” Major big banking companies like Wells Fargo and Bank of America are based in Phoenix, attracting people of all ages to the area in search of employment.

Additionally, Phoenix is known for its warm weather all year round. People looking to experience summer weather any time of the year are looking to move to a sunny city.

10. Charlotte, North Carolina

  • Number of Listings for Sale: 865
  • Median Property Price: $607,292
  • Average Price per Square Foot: $335
  • Number of Traditional Listings: 2826
  • Monthly Traditional Rental Income: $1,985
  • Traditional Cash on Cash Return: 1.69%
  • Traditional Cap Rate: 1.73%
  • Price to Rent Ratio: 26
  • Days on Market: 53
  • Walk Score: 36

Last on our fastest growing rental markets in the US is Charlotte, North Carolina. It can be an excellent place for a traditional rental property as people are moving to the city for job opportunities and are looking for a place to stay. The monthly rental income in Charleston can be considered high at $1,985, which ensures you will generate a return on your investment.

Some of the best job opportunities in Charlotte are at Bank of America. It is one of the largest employers in the city with over 15,000 employees.

Tips for Traditional Rental Properties

Below are a few tips to help you in investing in traditional rental properties:

BRRRR Strategy

If you are interested in investing in the fastest appreciating real estate markets, you may want some tips for traditional rentals. One tip relates to the BRRRR strategy. BRRRR essentially stands for the “buy, rehab, rent, refinance, repeat” strategy.

In the BRRRR strategy, investors focus on the necessary renovations to a rental property they purchase. It means they are able to quickly fix a property and then ask for more money to rent it out each month. Such a strategy helps to create a quick return on investment.

Below are some advantages to the BRRRR strategy:

  • Buying a property quicker
  • Little downtime before being able to rent it out
  • Create equity
  • Grow rental income
  • Invest with little cash
  • Receive loans with not the best credit

The BRRRR strategy is practiced among investors who are looking to make a quick profit in traditional rental properties. However, it is important to note there are some disadvantages to the strategy.

First, it is possible renovations could take much longer than expected or cost more than initially intended. It would make generating a quick profit more difficult. Second, it is possible you would not make enough money to refinance the property. Failing to raise enough would make the entire strategy ineffective.

Always be aware of the benefits and negatives before attempting the BRRRR strategy when renovating a property in one of the fastest growing rental markets in the US.

Related: BRRRR Investing: 5 Tips to Ensure Success

Investment Property Calculator

Another helpful tip for investing in traditional rentals is to check the data on your property before purchasing it. To do so, we recommend using our Investment Property Calculator. The tool shows you how your property is expected to perform based on up-to-date real estate data and trends. We only use data from reliable sources, such as the MLS, to run your property analysis.

Mashvisor’s rental property calculator presents you with both metrics and a comprehensive rental strategy, so you are able to make the best real estate decisions. Below are the metrics included:

Additionally, the above data is compared between traditional and Airbnb properties, so you are able to come up with the best strategy for your income property.

Real Estate Heatmap

Mashvisor offers an excellent tool for locating the best areas for a rental property. Our Real Estate Heatmap tool helps to show the most profitable neighborhoods in any city in the US. You are able to search multiple locations at once to find your perfect investment area.

To determine which neighborhoods will generate the best return on investment, we use real estate metrics to compare areas. Below are some of the data we consider:

  • Rental income
  • Cash on cash return
  • Cap rate
  • Occupancy rate

This tool will definitely help you find some of the fastest growing rental markets in the US this 2022.

Mashvisor’s Real Estate Heatmap tool helps investors find the most profitable neighborhoods in any US city.

Conclusion

Above, we looked at some of the fastest growing rental markets in the US. The locations can be considered promising locations for traditional rental properties in 2022 due to lots of job opportunities and desirable activities to take part in. People from all over are relocating to the said cities and will be in search of a place to stay.

To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here. To learn more about Mashvisor’s tools, schedule a demo soon.

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Julia is a content writer with a background in marketing. She studied Anthropology and Law & Society at Oberlin College.

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