Top 10 College Towns for Investing in Rental Properties

Contributing Writer, B2R Finance | Real Estate,Real Estate Investment

College Town

We’ve all seen the annual list for top party schools. It gets plenty of media attention every year.

Here at B2R Finance, we’ve discovered another list that we think investors of rental properties will really eat up: the top 10 college towns for buying rental properties. Our thanks to real estate data analytics firm RealtyTrac for this information.

For these rankings, RealtyTrac looked at public four-year universities with a total 2012 enrollment of 20,000 or more. The universities also were located in counties with an unemployment rate below the national average of 6.2 percent in June 2014.

College towns are often insulated from the economic storms that face other housing markets, offering an extra layer of protection to investors. There are risks, of course. College kids might mean more wear-and-tear on your rental investment, especially if they are the type to regularly hold large parties at your rental property on the weekends. (See party school link below.)

With an average rental yield of nearly 14 percent, the city of Akron, Ohio, home of the University of Akron, topped the list of best college towns for buying rental properties.

Here’s the top 10 list, combined with a top 10 list of best college towns for flipping: Top Ten List.

And here is an interactive map that shows the investment potential for rental properties in 95 college towns around the country.

Major College Towns Real Estate Investing Potential darenjblomquist Tableau Public

RealtyTrac ranked the top college towns for buying rental properties based on annual gross rental yield, which is the annualized rental income — using average fair market rents for the town from the U.S. Department of Housing and Urban Development — divided by the average of the median sales prices in the city during the first eight months of 2014.

Interestingly, just one college town made both the party list and the top rental list: the University of Florida in Gainesville. Congratulations Gators!





The information on this page is provided for informational purposes only and does not constitute investment, real estate, or legal advice. This information should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. No representations or warranties whatsoever, express or implied, are given as to the accuracy or applicability of the information contained herein. The information may be modified or rendered incorrect by changes in the marketplace or developments in the law, or for any other reason, and may not be applicable to any individual reader’s facts and circumstances.