In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Rhode Island. Three towns made our list: East Providence, Pawtucket, and Central Falls. 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.
Rhode Island is the smallest state by area, the seventh least populated, yet the second most densely populated. Rhode Island’s official nickname is “The Ocean State” because roughly 14% of its total area is taken up by large bays and inlets. Narragansett Bay, which is a large portion of the state’s topography, has more than 30 islands within its bay. Although the state is small, the amount of leads landlords are getting per property is mighty, ranging from 72-156 and days on the market coming in below two weeks for all towns.
Rhode Island’s state motto is “hope” and we certainly hope you find these three towns in The Ocean State to be great rental investment opportunities.
#3: Central Falls, RI
Central Falls as an area of only 1.29 square miles it is the smallest and most densely populated city in Rhode Island. This small town is more densely populated than Boston, coming in at the fourth most densely populated town in New England. The number of leads per property landlords are receiving confirms the demand. Leads are averaging around 72 with an average time on market coming in around 12 days. Median sale prices and average rent are strong at $290k and $1350, respectively. Home values have seen a 6% increase year over year as well.
- Population growth: 0%
- Employment growth: 0%
- Increase in home values: 6.0%
- Median Home Price: $290k
- Average Rent: $1350
- Average Number of Leads per Property: 72
- Number of days on the rental market: 12
#2: Pawtucket, RI
Pawtucket is the fourth largest city in Rhode Island, with a population hovering around 75,000. Pawtucket is considered the birthplace of the American Industrial Revolution. Two-hundred years ago Samual Slater tapped the hydropower of both the Blackstone River and Pawtucket Falls resulting in cotton thread being spun by machine instead of hand for the first time. You can still visit Slater Mill as well as three critically acclaimed theater companies and top-notch recreational facilities. Pawtucket is an ideal community to live, work, play and start a business. If you choose this quaint town for a rental investment property, you will get an average of 129 leads per property, less than two weeks on the market, and a strong housing market with an increase in home values coming in at 6% year over year.
- Population growth: 0%
- Employment growth: 0%
- Increase in home values: 6.0%
- Median Home Price: $235k
- Average Rent: $1340
- Average Number of Leads per Property: 129
- Number of days on the rental market: 13
#1: East Providence, RI
East Providence is the fifth largest city in Rhode Island with a population of just under 50,000. East Providence is located between the Providence and Seekonk Rivers on the west and the Seekonk area of Massachusetts on the east. The city has a total area of 16.6 square miles, of which, 13.4 square miles of it is land and 3.2 square miles of it is water. East Providence is a stones throw from the capital city of Providence and has many of the same amenities. Quaint, affordable and safe neighborhoods, with a median sale price of $250k and an average rent price of $1573. You get easy access to all of southern New England as well. East Providence touts a development mindset that is welcoming to new investment. The average number of leads per property supports that, coming in at 156 with an average of 11 days on the market.
- Population growth: 0%
- Employment growth: 0%
- Increase in home values: 2.7%
- Median Home Price: $250k
- Average Rent: $1573
- Average Number of Leads per Property: 156
- Number of days on the rental market: 11
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.
Use our handy map tool to explore top rental markets throughout the U.S.
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.