Top 10 Zip Codes to Invest in Residential Real Estate

Using cap rate, cash flow, affordability, annual rent increase, appreciation, and population size, we’ve assembled a top 10 ranking of the best zip codes to invest in residential real estate.

Texas remains one of the hottest states for real estate investors with three of the top ten zip codes located in the Lone Star State. Chicago has also proved to be a strong investment market, including suburbs of Detroit and other areas of the North East.

See below for top 10 zip code rankings:

trinity river audobon center.jpg — **# 1 -**
**Dallas, Texas**

Zip Code: **75217**
Median Cap Rate: **8.8%**
Median Rent: **$1,351**
Median Mortgage Payment: **$667**
Median Sale Price: **$138,100**
Annual Sale Price Change: **+16.5%**

#2 - Chicago, Illinois

Zip Code: **60644**
Median Cap Rate: **9.13%**
Median Rent: **$1,463**
Median Mortgage Payment: **$697**
Median Sale Price: **$144,262**
Annual Sale Price Change: **+32.11%**

#3 - Warren, Michigan

Zip Code: **48091**
Median Cap Rate: **9.84%**
Median Rent: **$1,101**
Median Mortgage Payment: **$487**
Median Sale Price: **$100,715**
Annual Sale Price Change: **+25.11%**

#4 - Newark, NJ

Zip Code: **07106**
Median Cap Rate: **7.04%**
Median Rent: **$1,888**
Median Mortgage Payment: **$1,166**
Median Sale Price: **$241,199**
Annual Sale Price Change: **+27.55%**

#5 - Roseville, Michigan

Zip Code: **48066**
Median Cap Rate: **9.13%**
Median Rent: **$550**
Median Mortgage Payment: **$1,166**
Median Sale Price: **$113,762**
Annual Sale Price Change: **+16.32%**

#6 - Indianapolis, IN

Zip Code: **46203**
Median Cap Rate: **8.86%**
Median Rent: **$920**
Median Mortgage Payment: **$452**
Median Sale Price: **$93,500**
Annual Sale Price Change: **+20.03%**

#7 - Houston, Texas

Zip Code: **77045**
Median Cap Rate: **8.94%**
Median Rent: **$1,361**
Median Mortgage Payment: **$662**
Median Sale Price: **$137,000**
Annual Sale Price Change: **+14.26%**

fort worth.jpg — #8 - Fort Worth, Texas

Zip Code: **76119**
Median Cap Rate: **8.81%**
Median Rent: **$1,189**
Median Mortgage Payment: **$587**
Median Sale Price: **$121,400**
Annual Sale Price Change: **+25.41%**

#9 - Shirley, NY

Zip Code: **11967**
Median Cap Rate: **7.80%**
Median Rent: **$2,307**
Median Mortgage Payment: **$1,287**
Median Sale Price: **$266,327**
Annual Sale Price Change: **+8.62%**

#10 - Philadelphia, PA

Zip Code: **19124**
Median Cap Rate: **11.11%**
Median Rent: **$1,243**
Median Mortgage Payment: **$487**
Median Sale Price: **$100,700**
Annual Sale Price Change: **+10.90%**

Top 10 Zip Codes - Table

Our rankings are based on cash flow, cap rate, market appreciation, affordability, and population size.

Market ReportJames CraigJuly 2, 2019Market Report