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Top 25 U.S. Zip Codes For Buying Single Family Rental Homes Ranked In Q3 2017 Single Family Rental Market ReportIRVINE, Calif., Oct. 19, 2017 /PRNewswire/ -- ATTOM Data Solutions, curator of the nation's largest multi-sourced property database, today released its Q3 2017 Single Family Rental Market report, which identified the top 25 U.S. zip codes for buying single family rental homes based on potential rental yields and cash flow, vacancy rates, home price appreciation, population growth, neighborhood quality, and average property age. The report analyzed the single family rental market in 4,854 U.S. zip codes and 439 U.S. counties with sufficient rental and home price data. "This top 25 list includes zip codes that not only have solid rental returns and positive cash flow opportunities, but are also located in neighborhoods with relatively low vacancy rates and with home price growth and population growth — which should continue to put upward pressure on rental rates," said Daren Blomquist, senior vice president at ATTOM Data Solutions. "Nearly half of these zip codes — 11 — have been discovered by larger investors, evidenced by an increase in the share of institutional investor purchases compared to a year ago." Top zip codes for buying single family rentals in Atlanta, Houston, Central Florida, Dallas "I can buy lots in areas that I can't sell homes, but I can rent," said Adam Whitmire, director of acquisitions for Atlanta-based Whitmire Group, explaining his company has shifted from buying existing homes as rentals to primarily buying lots and building new homes as rentals. Whitmire said neighborhoods south of Atlata with a higher share of renters are good markets for the build-to-rent strategy. Institutional investor share down nationwide, up in 37 percent of markets "One of the things we're excited about is the secondary and tertiary markets that are getting some action," said Greg Rand, CEO at OwnAmerica, an online platform designed to facilitate the exchange of occupied rental properties. "What was being done in Nashville, they're doing in Chattanooga instead. Oklahoma City instead of Dallas." Highest average rental yields in Detroit, Philadelphia, Chicago, Baltimore, Memphis "With housing affordability remaining a concern for many across Southern California, the number of cash-flowing rental property acquisitions are limited in the region," said Michael Mahon, president at First Team Real Estate covering the Southern California market. "However, some Southern California homeowners are leveraging the equity in their homes to purchase single family rental properties in other parts of the country." "We love the SFR rental model and the opportunity that exists in the market, and we're no longer able to find any good yields in Florida. In order to grow that business we have to go elsewhere," said Jamie Nahon, president of Eagle River Homes, which he said has acquired about 150 single family rentals mostly in Florida over the past five years. Lowest average rental yields in Miami, Los Angeles, Santa Barbara, New York, San Jose "The single-family rental market in the Seattle area has peaked and rental rates will continue to take a hit," said Matthew Gardner, chief economist at Windermere Real Estate, covering the Seattle market, where the King County annual gross rental yield for properties purchased in Q3 2017 ranked 25th lowest among the 439 counties analyzed in the report. About ATTOM Data Solutions Media: Custom Reports:
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