With an estimated 14.4 million college students, University and College towns are fertile rental markets. But with the housing bubble and the lowest interest rates in 50 years, investing in rental housing in these locales can be lucrative.
The National Association of Realtors® has ranked the top eight College towns for investing by comparing typical rents to payments on median priced homes..
Realtor.com’s finding include:
My preference? I believe that College and University towns that are also state capitals are the best. When was the last time that state government cut employment in the capital?
Note that most of the cities are known for other issues than being College towns. This reinforces the strategy to invest in rental housing. Rents will continue to rise given limited current construction.