TurboTenant Report: The Best Places to Buy Rental Investment Property in North Carolina

In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in North Carolina. Five towns made our list: Charlotte, Greensboro, Durham, Raleigh, and Fayetteville. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.

North Carolina is the 28th largest state by area, and the 9th most populous. It has a long and deep history and was one of the 13 original colonies. The state’s motto is “First in Flight” named for the famous Wright brothers who flew the world’s first airplane in 1903 in North Carolina’s Outer Banks. North Carolina has a wide variety of landscapes and elevations. Mount Mitchell is the highest peak east of the Mississippi River at 6,684 feet and on the east side of North Carolina, you have the Atlantic coastal plains.

It’s no wonder North Carolina is the 6th most visited state. It’s got breathtaking beauty, a moderate climate, and world-class sports and recreational offerings. Let’s take a look at the best places to buy rental investment property in the Tar Heel State.

#5: Fayetteville, NC

Fayetteville is best known as the home of Fort Bragg, a major U.S. Army installation northeast of the city. Fayetteville has received the “All-American City” award three times from the National Civic League. Fun fact: Babe Ruth hit his first home run in Fayetteville, earning his nickname “Babe.” Home values have increased 1.6% year over year, employment growth isn’t far behind with a 1.3% growth rate. The median sale price is just over 100k and rents are strong with an average of $783. With as little as 11 days on the market and 36 leads per property, we think Fayetteville hits a home run when it comes to rental investment properties.

• Population growth: 0%
• Employment growth: 1.3%
• Increase in home values: 1.6%
• Median Home Price: $110k
• Average Rent: $783
• Average Number of Leads per Property: 36
• Number of days on the rental market: 11

#4: Raleigh, NC

Raleigh is the state capital and the second-largest city after Charlotte, another town on our list. Raleigh is known as the “City of Oaks” after the quaint oak-lined streets in the center of the city. It is the home of North Carolina State University and part of Research Triangle Park, the United State’s largest research park, along with Durham and Chapel Hill. Raleigh has endless activities and attractions: you can attend a  concert, it boasts the most music in N.C, attend a sporting event or enjoy their highly-rated cuisine at a cute restaurant on an oak-lined street. Home values in Raleigh have increased 5.2% year over year, the median sale price sits just below $270k. Rents, leads and days on market are strong at $1180, 29, and 13 respectively.

• Population growth: 2%
• Employment growth: 1.7%
• Increase in home values: 5.2%
• Median Home Price: $269k
• Average Rent: $1180
• Average Number of Leads per Property: 29
• Number of days on the rental market: 13

#3: Durham, NC

Durham is the core of the four-county Durham-Chapel Hill Metropolitan Area. It is home to Duke University and North Carolina Central University. As mentioned above, it is also part of Research Triangle Park. Durham has a thriving start-up scene and award-winning eateries. In the Bull City, home values have increased by 11.7% year over year, population growth is impressive at 4.2% and employment growth has inched up by 1.4%.  With an average of 20 leads per property and an average of 16 days on the market, you’d be bullish not to buy a rental investment property is Durham.

• Population growth: 4.2%
• Employment growth: 1.4%
• Increase in home values: 11.7%
• Median Home Price: $271k
• Average Rent: $1163
• Average Number of Leads per Property: 20
• Number of days on the rental market: 16

#2: Greensboro, NC

Greensboro is the 3rd most populous city in North Carolina and is located in the heart of the state. Greensboro by the numbers: over 500 restaurants, 135 attractions, 88 accommodations, and 8 craft breweries. Its growth and home value numbers are impressive as well. Home values have increased by 7.8%, population growth by 1.7% and employment has increased by 1% year over year. Properties in Greensboro get an average of 58 leads, our highest on the list. It also has the least days on the market coming in at 9. The median sale price sits at $170k with an average rent coming in at $853.

• Population growth: 1.7%
• Employment growth: 1%
• Increase in home values: 7.8%
• Median Home Price: $170k
• Average Rent: $853
• Average Number of Leads per Property: 58
• Number of days on the rental market: 9

#1: Charlotte, NC

Charlotte is the most populous city in North Carolina with just under a million people. It is home to two professional sports teams, the Carolina Panthers (NFL) and the Charlotte Hornets (NBA). If you are a NASCAR fan, Charlotte is where you want to be. The Queen City houses the NASCAR Hall of Fame. Charlotte also reigns over the best places to buy a rental investment property list with an 11.9% home value increase, a population growth of 3.7%, and employment growth of 2.7%. Leads and days on market are strong as well at 24 and 10.

• Population growth: 3.7%
• Employment growth: 2.7%
• Increase in home values: 11.9%
• Median Home Price: $260k
• Average Rent: $1294
• Average Number of Leads per Property: 24
• Number of days on the rental market: 10

Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.

About the TurboTenant Report

The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].

Methodology:

In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.

We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.

DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.

Sources:

• TurboTenant Rental Data
• Fastest Growing States Population
• The Best and Worst Cities to Own Investment Property
• Real Estate data provided by Redfin, a national real estate brokerage