Houston named a top 10 investor market

by James McClister


In analyzing the country’s biggest residential real estate markets, weighing cap and rental rates, as well as median single-family home price, the online investment and management firm HomeUnion found that purchasing in Houston is a savvy move.

Since last year, Houston’s cap rate – referring to the capitalization rate, or the expected return on a real estate investment – has risen 10.7 percent. Add a median single-family home price of only $145,000, and Houston stands as one of the most promising investment markets in the country.

See our table below to see how Houston stacks up nationwide:

City Cap Rate Increase 2016 Winter Median SFR Price 2016 Avg. Winter Rent
Chicago 18.30% $128,000 $1,460
Greenville, S.C. 15.90% $86,250 1,130
Birmingham, Ala. 12% $76,700 $970
Tampa 11.70% $109,100 $1,160
Jacksonville 11.40% $103,900 $1,160
Houston 10.70% $145,100 $1,500
Austin 10.20% $219,300 $1,560
Dallas 7.70% $136,500 $1,440
Memphis 7.20% $82,400 $980
Indianapolis 7% $87,000 $1,060
Atlanta 7% $104,000 $1,130
Orlando 7% $147,800 $1,240
Nashville 6.50% $129,900 $1,220
San Antonio 6% $125,000 $1,300
Raleigh, N.C. 4.90% $147,500 $1,200
Charlotte 4.60% $110,000 $1,130

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  • Gabriela says:

    What zipcodes are the best for multifamily or less than 200 K investments in houston?

  • Susan Whitacre says:

    Gabriela, I encourage you to consider thinking ‘outside the Loop …and living there too!”, just as I do. I have helped families find fabulous homes in the Katy and west Houston area in the $150,000 to $180,000 price range! Many of these neighborhoods offer dynamic lifestyle amenities such as hiking, biking and walking trails along scenic bayous and lakes teeming with wildlife. There are also wonderful dining, shopping and entertainment options, as well as highly acclaimed schools in the area. Contact me if you would like to learn more about my neighborhood! SusanWhitacre7@gmail.com

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