Memphis Named Top SFR Investment Market – NMP Skip to main content

Memphis Named Top SFR Investment Market

Phil Hall
Feb 23, 2016
Memphis may be the home of the blues, but its housing market enjoyed more than a little green

Memphis may be the home of the blues, but its housing market enjoyed more than a little green. The Tennessee city was crowned as the best market for investing in single-family rental (SFR) properties while California’s pricey housing markets were dubbed the worst, according to new data from the Irvine, Calif.-based HomeUnion.

Based on cap rates, HomeUnion identified the top 10 SFR investment markets as Memphis (with a 7.3 percent cap rate), followed by Oklahoma City (6.9 percent), Pittsburgh (6.4 percent), Cincinnati (6.4 percent), Houston (6.1 percent), Indianapolis (six percent) and a four-way tie between Cleveland, Baltimore, Milwaukee and Tampa at 5.9 percent each.

Based on cap rates, the least attractive SFR investment markets were San Francisco and San Jose (tied at 2.7 percent), Orange County (three percent), Los Angeles (3.2 percent), a three-way tie between New York, Seattle and Oakland (each at 3.5 percent), San Diego and Sacramento (tied at 3.6 percent) and Portland (3.9 percent).

“Other asset classes underperformed in 2015, while single-family rental investors saw healthy returns in terms of income and appreciation in markets across the country,” said Steve Hovland, manager, research services at HomeUnion. “Favorable supply and demand fundamentals and shifting views about renting among Millennials and seniors, created increased occupancy rates, which resulted in higher rent prices.”

Published
Feb 23, 2016
FirstClose Receives $35M Investment From Lateral

Fintech says it will use the investment to expand its growing financial services footprint.

Industry News
May 18, 2022
Mortgage News Network Launches Podcast On Helping Underserved Borrowers

'Gated Communities' looks at why homeownership gap is increasing, and what lenders are doing to reverse the trend.

Industry News
May 17, 2022
Class Valuation Appoints EVP Of Valuation Modernization

Cristy Conolly will focus on removing bias from the equation in appraisals.

Industry News
May 17, 2022
Open Mortgage Appoints New Chief Financial Officer

Anthony Nolte, Open Mortgage's CFO since 2019, will transition to chief legal officer.

Industry News
May 17, 2022
Online Brokerage REX Pursues Litigation Against Zillow & NAR

The legal battle between REX Home Loans (Real Estate Exchange, Inc.) and NAR continues to heat up, even though REX is reported to have shut down operations.

Industry News
May 16, 2022
Fannie Mae Seeks Innovative Housing Ideas

Sustainable Communities Innovation Challenge seeks ideas to advance racial equity in housing, focusing on addressing supply, funding and credit barriers.

Industry News
May 16, 2022