July 29, 2023
For real estate investors rent-to-price (RTP) ratio is the most important metric to determine whether an area has the potential to generate cash flow. Rent to price ratio is calculated by dividing the median rent by the median home price. The higher the RTP the better for investors because that means the properties in average generate higher rental income.
These are top 10 zip codes in the US with the highest rent-to-price (RTP) ratio as of July ‘23 according to the data on zipfinder.co:
- 14621: Rochester, NY:
Median Home Price: $830K
Median Rent: $1146
Rent-to-Price: 1.38
- 12206: Albany, NY
Median Home Price: $174k
Median Rent: $1974
Rent-to-Price: 1.13
- 48195: Southgate, MI
Median Home Price: $168k
Median Rent: $1854
Rent-to-Price: 1.10
- 48195: Buffalo, NY
Median Home Price: $111k
Median Rent: $1183
Rent-to-Price: 1.06
- 15120: Homestead, PA
Median Home Price: $130k
Median Rent: $1382
Rent-to-Price: 1.06
- 06901: Stamford, CT
Median Home Price: $280k
Median Rent: $2824
Rent-to-Price: 1.01
- 44121: Cleveland, OH
Median Home Price: $150k
Median Rent: $1357
Rent-to-Price: 0.90
- 60073: Round Lake, IL
Median Home Price: $221k
Median Rent: $1963
Rent-to-Price: 0.89
- 43615: Toledo, OH
Median Home Price: $147k
Median Rent: $1277
Rent-to-Price: 0.87
- 63031: Florissant, MO
Median Home Price: $162k
Median Rent: $1413
Rent-to-Price: 0.87
*This only includes zip codes that have low crime score (betweeen A and C+) and a walk score of 50+ to exclude areas that are too remote.
Visit zipfinder.co to find the perfect zip code for you
