Rental Property Types Single 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, 2019 Residential 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 Must There 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 2020 Single 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 Property Related: The Future of Real Estate: 4 Trends of 2020 The Best Single Family Rental Markets in the US Housing Market 2020 As 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 Market Atlanta, GA Median Property Price: $415,406 Price per Square Foot: $204 Price-to-Rent Ratio: 17 Traditional Rental Income: $2,018 Traditional 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, FL Median Property Price: $654,874 Price per Square Foot: $249 Price-to-Rent Ratio: 21 Traditional Rental Income: $2,567 Traditional Cap Rate / Cash on Cash Return: 1.3% Buffalo, NY Median Property Price: $147,314 Price per Square Foot: $88 Price-to-Rent Ratio: 12 Traditional Rental Income: $1,061 Traditional Cap Rate / Cash on Cash Return: 2.5% Charleston, SC Median Property Price: $650,595 Price per Square Foot: $285 Price-to-Rent Ratio: 29 Traditional Rental Income: $1,855 Traditional Cap Rate / Cash on Cash Return: 1.7% Chicago, IL Median Property Price: $282,352 Price per Square Foot: $156 Price-to-Rent Ratio: 15 Traditional Rental Income: $1,967 Traditional 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, CO Median Property Price: $444,483 Price per Square Foot: $171 Price-to-Rent Ratio: 23 Traditional Rental Income: $1,638 Traditional Cap Rate / Cash on Cash Return: 1.7% Columbia, SC Median Property Price: $227,815 Price per Square Foot: $103 Price-to-Rent Ratio: 16 Traditional Rental Income: $1,154 Traditional Cap Rate / Cash on Cash Return: 2.0% Columbus, OH Median Property Price: $214,644 Price per Square Foot: $132 Price-to-Rent Ratio: 15 Traditional Rental Income: $1,188 Traditional Cap Rate / Cash on Cash Return: 2.0% Dallas, TX Median Property Price: $424,601 Price per Square Foot: $193 Price-to-Rent Ratio: 18 Traditional Rental Income: $1,976 Traditional Cap Rate / Cash on Cash Return: 1.4% Learn more about Dallas single family homes by reading our Dallas Real Estate Market Report. Dayton, OH Median Property Price: $112,977 Price per Square Foot: $67 Price-to-Rent Ratio: 11 Traditional Rental Income: $896 Traditional Cap Rate / Cash on Cash Return: 3.3% Daytona Beach, FL Median Property Price: $284,056 Price per Square Foot: $154 Price-to-Rent Ratio: 17 Traditional Rental Income: $1,383 Traditional Cap Rate / Cash on Cash Return: 2.5% Related: Why Investing in Daytona Beach Real Estate Is Smart Grand Rapids, MI Median Property Price: $275,949 Price per Square Foot: $131 Price-to-Rent Ratio: 19 Traditional Rental Income: $1,238 Traditional Cap Rate / Cash on Cash Return: 1.6% Greensboro, NC Median Property Price: $277,098 Price per Square Foot: $136 Price-to-Rent Ratio: 16 Traditional Rental Income: $1,462 Traditional Cap Rate / Cash on Cash Return: 2.9% Houston, TX Median Property Price: $427,627 Price per Square Foot: $168 Price-to-Rent Ratio: 19 Traditional Rental Income: $1,905 Traditional Cap Rate / Cash on Cash Return: 1.5% Learn more about Houston single family homes by reading our Houston Real Estate Market Report. Knoxville, TN Median Property Price: $315,235 Price per Square Foot: $131 Price-to-Rent Ratio: 25 Traditional Rental Income: $1,039 Traditional Cap Rate / Cash on Cash Return: 1.0% Las Vegas, NV Median Property Price: $421,327 Price per Square Foot: $189 Price-to-Rent Ratio: 24 Traditional Rental Income: $1,447 Traditional 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, CA Median Property Price: $1,086,975 Price per Square Foot: $590 Price-to-Rent Ratio: 24 Traditional Rental Income: $3,824 Traditional 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, NE Median Property Price: $263,304 Price per Square Foot: $126 Price-to-Rent Ratio: 19 Traditional Rental Income: $1,183 Traditional Cap Rate / Cash on Cash Return: 1.0% Milwaukee, WI Median Property Price: $139,121 Price per Square Foot: $99 Price-to-Rent Ratio: 11 Traditional Rental Income: $1,089 Traditional Cap Rate / Cash on Cash Return: 3.1% Myrtle Beach, SC Median Property Price: $357,553 Price per Square Foot: $145 Price-to-Rent Ratio: 22 Traditional Rental Income: $1,353 Traditional Cap Rate / Cash on Cash Return: 1.3% Nashville, TN Median Property Price: $452,363 Price per Square Foot: $1,404 Price-to-Rent Ratio: 21 Traditional Rental Income: $1,743 Traditional Cap Rate / Cash on Cash Return: 1.9% Learn more about Nashville single family homes by reading our Nashville Real Estate Market Report. Portland, OR Median Property Price: $568,644 Price per Square Foot: $265 Price-to-Rent Ratio: 22 Traditional Rental Income: $2,158 Traditional Cap Rate / Cash on Cash Return: 1.3% Raleigh, NC Median Property Price: $479,532 Price per Square Foot: $179 Price-to-Rent Ratio: 25 Traditional Rental Income: $1,581 Traditional Cap Rate / Cash on Cash Return: 1.1% Richmond, VA Median Property Price: $303,714 Price per Square Foot: $153 Price-to-Rent Ratio: 19 Traditional Rental Income: $1,353 Traditional Cap Rate / Cash on Cash Return: 1.9% Sacramento, CA Median Property Price: $351,784 Price per Square Foot: $240 Price-to-Rent Ratio: 19 Traditional Rental Income: $1,562 Traditional Cap Rate / Cash on Cash Return: 1.4% San Diego, CA Median Property Price: $837,356 Price per Square Foot: $533 Price-to-Rent Ratio: 25 Traditional Rental Income: $2,767 Traditional 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, CA Median Property Price: $1,029,459 Price per Square Foot: $633 Price-to-Rent Ratio: 26 Traditional Rental Income: $3,332 Traditional Cap Rate / Cash on Cash Return: 1.4% Tallahassee, FL Median Property Price: $292,123 Price per Square Foot: $141 Price-to-Rent Ratio: 19 Traditional Rental Income: $1,300 Traditional 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 1 FacebookTwitterGoogle +PinterestLinkedin Hamza Abdul-Samad Hamza 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 Long Term Rentals vs. Short Term Rentals for Beginner Real Estate Investors The Advantages and Disadvantages of Turnkey Rentals for Real Estate Investors 6 Reasons You Need to Invest in Single Family Homes for Sale in 2018 How Much Expense Goes Into a Luxury Rental Property? 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