Rental Property TypesSingle Family Homes: The Best Rental Properties for 2020 by Hamza Abdul-Samad December 28, 2019December 11, 2019 by Hamza Abdul-Samad December 28, 2019December 11, 2019Residential real estate investments are known for being diverse and profitable. So you’ve probably heard of the age-old residential real estate debate of single family homes vs multi family homes. But of all the types of investment property you can buy in 2020, single family homes are easily the best. In this blog, we’ll analyze this bold statement through three important questions:Why should you be investing in single family homes?Why are single family homes the best real estate investment in the US housing market 2020?What are the best real estate markets for buying a single family home in 2020?Related: Single Family Homes vs. Multi Family Homes – Infographic Why Investing in Single Family Homes Is a MustThere are many reasons why investing in single family rentals is the best real estate investment strategy out there. For starters, single family rentals are among the most affordable investment properties, especially compared to multi family properties. These income properties also have very high cash flow. This is largely due to tenants paying for utility bills, which isn’t typical for multi family properties.Speaking of tenants, this type of rental property can attract good tenants. Tenants of single family properties typically view the rental property as their home, leading to fewer turnovers and more care from tenants. Real estate investors of single family properties will also find the property management to be easier because there is only one unit.Single family homes trump their multi family counterparts in another aspect: natural real estate appreciation. So even after investors have exhausted renting out a single family rental home, they can easily sell it for a good return on investment and with great liquidity. This is because single family rentals garner high demand from both homebuyers and real estate investors in the market.This is exactly why single family homes are the best rental properties, no matter the year. But what makes them so great for 2020?Why Single Family Homes Are the Best Rental Properties for 2020Single family homes are forecast to be in high demand in 2020. This is due to a variety of factors. According to CNBC, single family rentals are experiencing decreased vacancy rates. In the third quarter of 2019, single family property vacancies were 6.8%, which was down from 7.1% from the year prior.The low supply of rental single family homes contributes to their high demand. Even with an increased supply after the foreclosure crisis, the number of single family homes for rent has dropped significantly. The low supply has led to increased rent from these properties. CoreLogic reports that single family rents increased 3% year over year in September. And since investing in single family rentals has been so successful, real estate investors have not been selling their properties. This further reinforces the low supply.The combination of these factors makes investing in single family homes the best real estate strategy for 2020. If you can get your hands on one in a good location, you can enjoy the high rental occupancy rates and rising rental income next year.You can easily find profitable single family homes using Mashvisor’s property search tools. Start your search now. Search for My Investment PropertyRelated: The Future of Real Estate: 4 Trends of 2020The Best Single Family Rental Markets in the US Housing Market 2020As mentioned, if you do want to profit from single family homes in 2020, you have to buy one in a good location. So where are the best single family rental markets for 2020? We went ahead and found them for you! Below, we have compiled the data on the top single family markets in the US for buying rental property. These cities are particularly popular locations for single family homes because they are in high demand and profitable. As you will see from Mashvisor’s data, each city listed has a good cap rate for single family homes.Related: Where Can You Find Reliable Cap Rates for Single Family Homes?The Atlanta Real Estate MarketAtlanta, GAMedian Property Price: $415,406Price per Square Foot: $204Price-to-Rent Ratio: 17Traditional Rental Income: $2,018Traditional Cap Rate / Cash on Cash Return: 2.6%Learn more about Atlanta single family homes by reading our Atlanta Real Estate Market Report.Boca Raton, FLMedian Property Price: $654,874Price per Square Foot: $249Price-to-Rent Ratio: 21Traditional Rental Income: $2,567Traditional Cap Rate / Cash on Cash Return: 1.3%Buffalo, NYMedian Property Price: $147,314Price per Square Foot: $88Price-to-Rent Ratio: 12Traditional Rental Income: $1,061Traditional Cap Rate / Cash on Cash Return: 2.5%Charleston, SCMedian Property Price: $650,595Price per Square Foot: $285Price-to-Rent Ratio: 29Traditional Rental Income: $1,855Traditional Cap Rate / Cash on Cash Return: 1.7%Chicago, ILMedian Property Price: $282,352Price per Square Foot: $156Price-to-Rent Ratio: 15Traditional Rental Income: $1,967Traditional Cap Rate / Cash on Cash Return: 2.7%Learn more about Chicago single family homes by reading our Chicago Real Estate Market Report.Colorado Springs, COMedian Property Price: $444,483Price per Square Foot: $171Price-to-Rent Ratio: 23Traditional Rental Income: $1,638Traditional Cap Rate / Cash on Cash Return: 1.7%Columbia, SCMedian Property Price: $227,815Price per Square Foot: $103Price-to-Rent Ratio: 16Traditional Rental Income: $1,154Traditional Cap Rate / Cash on Cash Return: 2.0%Columbus, OHMedian Property Price: $214,644Price per Square Foot: $132Price-to-Rent Ratio: 15Traditional Rental Income: $1,188Traditional Cap Rate / Cash on Cash Return: 2.0%Dallas, TXMedian Property Price: $424,601Price per Square Foot: $193Price-to-Rent Ratio: 18Traditional Rental Income: $1,976Traditional Cap Rate / Cash on Cash Return: 1.4%Learn more about Dallas single family homes by reading our Dallas Real Estate Market Report.Dayton, OHMedian Property Price: $112,977Price per Square Foot: $67Price-to-Rent Ratio: 11Traditional Rental Income: $896Traditional Cap Rate / Cash on Cash Return: 3.3%Daytona Beach, FLMedian Property Price: $284,056Price per Square Foot: $154Price-to-Rent Ratio: 17Traditional Rental Income: $1,383Traditional Cap Rate / Cash on Cash Return: 2.5%Related: Why Investing in Daytona Beach Real Estate Is SmartGrand Rapids, MIMedian Property Price: $275,949Price per Square Foot: $131Price-to-Rent Ratio: 19Traditional Rental Income: $1,238Traditional Cap Rate / Cash on Cash Return: 1.6%Greensboro, NCMedian Property Price: $277,098Price per Square Foot: $136Price-to-Rent Ratio: 16Traditional Rental Income: $1,462Traditional Cap Rate / Cash on Cash Return: 2.9%Houston, TXMedian Property Price: $427,627Price per Square Foot: $168Price-to-Rent Ratio: 19Traditional Rental Income: $1,905Traditional Cap Rate / Cash on Cash Return: 1.5%Learn more about Houston single family homes by reading our Houston Real Estate Market Report.Knoxville, TNMedian Property Price: $315,235Price per Square Foot: $131Price-to-Rent Ratio: 25Traditional Rental Income: $1,039Traditional Cap Rate / Cash on Cash Return: 1.0%Las Vegas, NVMedian Property Price: $421,327Price per Square Foot: $189Price-to-Rent Ratio: 24Traditional Rental Income: $1,447Traditional Cap Rate / Cash on Cash Return: 1.4%Learn more about Las Vegas single family homes by reading our Las Vegas Real Estate Market Report.Los Angeles, CAMedian Property Price: $1,086,975Price per Square Foot: $590Price-to-Rent Ratio: 24Traditional Rental Income: $3,824Traditional Cap Rate / Cash on Cash Return: 1.6%Learn more about Los Angeles single family homes by reading our Los Angeles Real Estate Market report.Lincoln, NEMedian Property Price: $263,304Price per Square Foot: $126Price-to-Rent Ratio: 19Traditional Rental Income: $1,183Traditional Cap Rate / Cash on Cash Return: 1.0%Milwaukee, WIMedian Property Price: $139,121Price per Square Foot: $99Price-to-Rent Ratio: 11Traditional Rental Income: $1,089Traditional Cap Rate / Cash on Cash Return: 3.1%Myrtle Beach, SCMedian Property Price: $357,553Price per Square Foot: $145Price-to-Rent Ratio: 22Traditional Rental Income: $1,353Traditional Cap Rate / Cash on Cash Return: 1.3%Nashville, TNMedian Property Price: $452,363Price per Square Foot: $1,404Price-to-Rent Ratio: 21Traditional Rental Income: $1,743Traditional Cap Rate / Cash on Cash Return: 1.9%Learn more about Nashville single family homes by reading our Nashville Real Estate Market Report.Portland, ORMedian Property Price: $568,644Price per Square Foot: $265Price-to-Rent Ratio: 22Traditional Rental Income: $2,158Traditional Cap Rate / Cash on Cash Return: 1.3%Raleigh, NCMedian Property Price: $479,532Price per Square Foot: $179Price-to-Rent Ratio: 25Traditional Rental Income: $1,581Traditional Cap Rate / Cash on Cash Return: 1.1%Richmond, VAMedian Property Price: $303,714Price per Square Foot: $153Price-to-Rent Ratio: 19Traditional Rental Income: $1,353Traditional Cap Rate / Cash on Cash Return: 1.9%Sacramento, CAMedian Property Price: $351,784Price per Square Foot: $240Price-to-Rent Ratio: 19Traditional Rental Income: $1,562Traditional Cap Rate / Cash on Cash Return: 1.4%San Diego, CAMedian Property Price: $837,356Price per Square Foot: $533Price-to-Rent Ratio: 25Traditional Rental Income: $2,767Traditional Cap Rate / Cash on Cash Return: 1.3%Learn more about San Diego single family homes by reading our San Diego Real Estate Market Report.San Jose, CAMedian Property Price: $1,029,459Price per Square Foot: $633Price-to-Rent Ratio: 26Traditional Rental Income: $3,332Traditional Cap Rate / Cash on Cash Return: 1.4%Tallahassee, FLMedian Property Price: $292,123Price per Square Foot: $141Price-to-Rent Ratio: 19Traditional Rental Income: $1,300Traditional Cap Rate / Cash on Cash Return: 1.6%Single family homes have consistently been the best residential property type for many years. 2020 will be a particularly good year for buying single family homes for sale and renting them out! To start searching for profitable and cheap single family homes, click here to start your 14-day FREE trial with Mashvisor! Start Your Investment Property Search! START FREE TRIAL Atlanta GADallas TXOccupancy RateRental IncomeSingle Family HomeVacancies 1FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-SamadHamza is a long-time writer at Mashvisor. With a focus on real estate investing tips, concepts, and top investing locations, he aims to help all aspiring investors who come across his blogs to hit the bank with their investment property. Previous Post St. Louis Real Estate 2020: 4 Reasons to Invest Next Post 6 Airbnb Messaging Tips to Impress Your Guests Related Posts Is Multi Family Real Estate Management Compatible With Part-Time Real Estate Investing? Everything You Need to Know About Investing in Micro Apartments What Is a Duplex? A Complete Guide for Investors Rural Homes: Good Real Estate Investment Opportunities in 2020? 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