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Home · Property Management · Real Estate Investing : The 10 Worst Cities For Single-Family Home Rental Investments

rebound decrease down chart graphSingle-family rental properties can offer a good investment alternative to stocks and bonds, but not all cities offer the same level of returns, according to HomeUnion, an online real estate investment management firm based in Irvine, Calif.

HomeUnion rated cities across the country for rental property returns based on the cap rate, which is the relationship between an investment property’s net operating income (rents minus expenses) and the market value of the property.

These 10 cities, listed along with the cap rate, had the least favorable investment returns. They are listed in reverse order.

No. 10: Portland, Ore., 3.9 percent

No. 9: Sacramento, 3.6 percent

No. 8: San Diego, 3.6 percent

No. 7: Oakland, Calif. 3.5 percent

No. 6: Seattle, 3.5 percent

No. 5: New York City, 3.5 percent

No. 4: Los Angeles, 3.2 percent

No. 3: Orange County, Calif., 3 percent

No. 2: San Jose, 2.7 percent

No. 1: San Francisco, 2.7 percent

To see the BEST cities to invest in, click here. 

Source: fa-mag.com

  • william

    It seems like all of these cities are out of whack. A pure speculation market not really based on fundamentals. Time to take the money and run.

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