Top Historic Neighborhoods to Invest In

CONSIDER INVESTING IN A LITTLE HISTORY… Some of the most visited and vibrant cities in the United States also feature the most charming historic neighborhoods and districts. Built by careful design, these neighborhoods come with stories and atmospheres what has kept people coming back for decades. We’re making a case for investing in a property in one of these neighborhoods (although they are just a few of many great options). Below, the top historic neighborhoods to invest in:

CHARLESTON HISTORIC DISTRICT Charleston, South Carolina

From the historic mansions, the waterfront, the gardens, the cobblestone streets and gas-lit alleys of the French Quarter (yep, Charleston’s got its own French Quarter), the history is sewn into the very fabric of Charleston’s atmosphere. The city has it’s own bustling night life, at scene, and beach life, making it one the South’s tourist hot spots.

Related: What You Should Know About Buying an Investment Property in Historic Districts

In Charleston, we recommend the Airbnb rental strategy as the numbers are reflecting strong and solid cash on cash (CoC) return and cap rate.

The numbers:

• Median Property Price: $388,000
• Traditional CoC Return: 3.55%
• Airbnb CoC Return: 6.32%
• Traditional Cap Rate: 6.16%
• Airbnb Cap Rate: 9.11%
• Traditional Rental Income: $1,972.78
• Airbnb Rental Income: $2,843.78
• Occupancy Rate: 52%

FRENCH QUARTER New Orleans, Louisiana

The French Quarter of New Orleans rests just off of the Mississippi River on some of the highest ground in the state. It is the cultural highlight of the city and is also the friendliest. Intimate and unique, New Orleans’ oldest neighborhood has had an allure since the end of the 19^th century. This neighborhood’s architecture features a unique and eclectic blend of Spanish, French, Creole, and American stiles. Complimented by charming walled courtyards, and cast iron balconies, it’s one of the top historic neighborhoods to invest in.

In the French Quarter, we recommend the Airbnb rental strategy as the numbers are reflecting strong and solid cash on cash (CoC) return and cap rate. Although the property prices are a bit higher, the average occupancy rates are very strong which ensures a sizable return.

The numbers:

• Median Property Price: $474,000
• Traditional CoC Return: 2.54%
• Airbnb CoC Return: 6.95%
• Traditional Cap Rate: 5.19%
• Airbnb Cap Rate: 9.37%
• Traditional Rental Income: $2,894.58
• Airbnb Rental Income: $2,806.56
• Occupancy Rate: 63.78%

GEORGETOWN Washington, DC

Originally its own city, Georgetown’s tree-lined cobblestone streets and quaint row houses make it feel like it you’re stepping into another realm. With is unique blend of political history, culture, nightlife, and commercial center, the neighborhood offers everything residents and tourists alike could want. It’s one of the top historic neighborhoods to invest in.

In Georgetown, we recommend the traditional rental strategy as the numbers are reflecting strong and solid cash on cash (CoC) return and cap rate. The property prices are definitely high in this neighborhood, but it’s a great long-term investment as the nation’s capital.

The numbers:

• Median Property Price: $1,429,000
• Traditional CoC Return: 2.45%
• Airbnb CoC Return: 1.03
• Traditional Cap Rate: 4.54%
• Airbnb Cap Rate: 2.24%
• Traditional Rental Income: $4,842.46
• Airbnb Rental Income: $1,948.81
• Occupancy Rate: 49.2%

FELL’S POINT Baltimore, Maryland

This historic waterfront district of Fell’s Point was established around 1763 along the banks of the Baltimore Harbor and Patapsco River. With a strong connection to the US’s naval history, the perfectly area combines history with contemporary culture. It features the greatest concentration of bars and restaurants in Baltimore. It’s one of the top historic neighborhood to invest in.

In Fell’s Point, Airbnb isn’t a popular mode of renting in this neighborhood so we recommend the traditional rental strategy. The numbers are reflecting strong and solid cap rate.

The numbers:

• Median Property Price: $562,000
• Traditional CoC Return: 2.94%
• Traditional Cap Rate: 5.47%
• Traditional Rental Income: $2,035

MONTFORD HISTORIC DISTRICT Asheville, North Carolina

This primarily residential neighborhood of Asheville is listed on the National Register of Historic Places and features historic styles from all throughout America’s history. With over 600 historic structures spread out over 300 acres and an proximity to downtown, the neighborhood is the perfect combination of serenity and city-life.

In the Montford Historic District, we recommend the Airbnb rental strategy as the numbers are reflecting strong and solid cash on cash (CoC) return and cap rate. With affordable property prices, impressive Airbnb rental incomes, and high occupancy rates, this is definitely one of the top historic neighborhoods to invest in.

Related: The Guide to Using an Airbnb Profit Calculator 

The numbers:

• Median Property Price: $349,950
• Traditional CoC Return: 2.17%
• Airbnb CoC Return: 8.6%
• Traditional Cap Rate: 5.04%
• Airbnb Cap Rate: 11.88%
• Traditional Rental Income: $1,345.41
• Airbnb Rental Income: $3,299.60
• Occupancy Rate: 58.89% 

OLD CITY Philadelphia, Pennsylvania

Philadelphia’s Old City neighborhood features some of U.S. history’s biggest highlights: got the Liberty Bell, Independence Hall, the National Constitution Center.  Combine that with the neighborhood’s active party scene stocked with bars and restaurants, and it’s not wonder the area keeps attracting people from all over.

In the Old City, we recommend the Airbnb rental strategy as the numbers are reflecting strong and solid cash on cash (CoC) return and cap rate. With affordable property prices, solid Airbnb rental incomes, and high occupancy rates, this is definitely one of the top historic neighborhoods to invest in.

Related: What Kind of Airbnb Occupancy Rate Can You Expect? 

The numbers:

• Median Property Price: $350,000
• Traditional CoC Return: 4.08%
• Airbnb CoC Return: 6.13%
• Traditional Cap Rate: 7.23%
• Airbnb Cap Rate: 9.41%
• Traditional Rental Income: $2,282.08
• Airbnb Rental Income: $2,809.41
• Occupancy Rate: 58.52%