Investing in affordable investment properties can be a smart financial decision, especially when you target markets that combine affordability with high rental demand. For those seeking opportunities with a lower barrier to entry and promising returns, Realtor.com has identified the top 10 markets where investors can make lucrative real estate investments. From Dayton, Ohio, to Columbus, Ohio, these areas offer a range of properties at accessible price points with strong rental markets.
The Appeal of Affordable Investment Properties
Affordable investment properties are an attractive option for both novice and experienced investors. Not only do these properties come with lower upfront costs, but they are often situated in markets with strong rental demand, ensuring a steady income stream. Realtor.com highlights several cities where investors can capitalize on low property prices while reaping the benefits of rising rents and low rental vacancy rates.
One prime example is Dayton, Ohio, which tops the list with a median listing price of $239,000 and a rental vacancy rate of just 4.7%. Investors have flocked to this market, drawn by the combination of affordability and demand from renters.
Top Markets for Affordable Investment Properties
Here’s a closer look at the cities highlighted by Realtor.com as the best places to find affordable investment properties:
Dayton, OH
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- Median listing price: $239,000
- Rental vacancy rate: 4.7%
- Typical monthly housing payment: $1,200
Dayton is an ideal market for investors looking for high demand with low vacancy. The city’s proximity to both Columbus and Cincinnati adds to its appeal.
Rochester, NY
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- Median listing price: $265,000
- Rental vacancy rate: 4.5%
- Typical monthly housing payment: $1,300
Rochester’s affordability and growing demand make it a top choice for those looking to invest in rental properties.
Cleveland, OH
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- Median listing price: $241,000
- Rental vacancy rate: 4.3%
- Typical monthly housing payment: $1,200
Cleveland has long been known as an affordable market with strong rental demand, providing great potential for investors.
Pittsburgh, PA
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- Median listing price: $246,000
- Rental vacancy rate: 6.3%
- Typical monthly housing payment: $1,200
Despite a slightly higher vacancy rate, Pittsburgh’s low property prices make it a solid investment option.
Knoxville, TN
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- Median listing price: $469,000
- Rental vacancy rate: 4.0%
- Typical monthly housing payment: $2,300
Knoxville is the only southern market on the list, standing out for its growing population and demand for rental properties.
Albany, NY
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- Median listing price: $424,000
- Rental vacancy rate: 3.1%
- Typical monthly housing payment: $2,100
Albany boasts low vacancy rates and affordable housing compared to other cities in the Northeast.
New Haven, CT
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- Median listing price: $408,000
- Rental vacancy rate: 2.4%
- Typical monthly housing payment: $2,000
New Haven’s proximity to major hubs like New York City makes it a desirable location for both renters and investors.
Buffalo, NY
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- Median listing price: $266,000
- Rental vacancy rate: 8.1%
- Typical monthly housing payment: $1,300
Buffalo offers some of the lowest prices on the list, providing ample opportunities for investors seeking affordable properties.
Grand Rapids, MI
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- Median listing price: $409,000
- Rental vacancy rate: 3.8%
- Typical monthly housing payment: $2,000
Grand Rapids combines affordability with a strong economy, making it a top choice for investors.
Columbus, OH
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- Median listing price: $381,000
- Rental vacancy rate: 7.1%
- Typical monthly housing payment: $1,900
Columbus, like Dayton, benefits from its central location and growing rental market.
Why Affordable Investment Properties Make Sense
In today’s competitive real estate market, affordable investment properties allow investors to maximize their returns without the high upfront costs associated with pricier markets. By focusing on areas with low vacancy rates and strong rental demand, investors can secure steady rental income while benefiting from property appreciation over time. The data from Realtor.com reinforces the idea that affordable markets, particularly in the Midwest and Northeast, continue to offer excellent opportunities for both new and seasoned investors.
For those looking to make a sound investment, affordable investment properties in cities like Dayton, Rochester, and Cleveland provide a great opportunity. These markets offer a combination of low prices, high demand, and low rental vacancy rates, ensuring strong returns for investors. As the real estate landscape continues to evolve, targeting affordable markets is a key strategy for success.
