The 10 Best Sub-Markets for Investing in Single-Family Rentals

Annualized returns on SFR investments in Des Plaines, Ill., near Chicago, total 6.0 percent. Local schools are rated at 76.4.

Overland Park, Kan., in the Kansas City metro area, offers returns of 6.2 percent and a school rating of 97.4.

Fairview, Tenn., in the Nashville area, has annualized total returns of 6.5 percent. The school rating in the zip code is 70.6.

Weston, Fla., near Fort Lauderdale, boasts returns of 6.6 percent. Schools in the area rate at 70.5.

Palmetto Bay, in the Miami metro, delivers SFR returns of 6.8 percent. Schools in the zip code got a rating of 83.9.

West Bloomfield Township, Mich., in the Detroit area, offers investors returns of 6.9 percent and a school rating of 74.4.

In Gladwyne, Penn., in the Philadelphia area, SFR investment returns also total 6.9 percent. Schools here rate at 86.9.

The top sub-market for five-year SFR returns is currently Hamptons at Boca Raton, Fla., in the West Palm Beach metro. The submarket delivers returns of 8.1 percent. Local schools have a rating of 87.9.