Mortgage lender Rocket Mortgage has released the results of a study that examines the best U.S. cities to invest in real estate, and one Hoosier city tops the list while another is included in the top 10. The company analyzed a variety of data points, including house price index, property taxes, home appreciation, and rent to income ratio.
Rocket Mortgage ranks Fort Wayne as its number one emerging real estate market in the country, with Indianapolis coming in at number three.
The mortgage company says Fort Wayne has a home appreciation rate of 14.62%. The median listing price is $199,947, compared to the U.S. median house price of $617,890. The rent-to-income ratio is 18.12%.
Rocket Mortgage says Indianapolis is another “blooming” city to invest in and points to Broad Ripple, Fountain Square and Meridian-Kessler neighborhoods as ideal locations to seek investment for potential rental property.
It puts the median Indy appreciation rate at 14.62%, and rent-to-income ratio at 21.51%. The current median sold price in Indianapolis is $229,997.
Rocket Mortgage also noted Indy’s growth in the younger demographic with 38% of its residents under the age of 25.
The lender says a real estate market can be deemed attractive to real estate investors if they see three things: appreciation, cash flow, and a balance between appreciation and cash flow.
Toledo, Ohio is ranked number two behind Fort Wayne. The Buckeye State also claimed three other top 10 spots as emerging real estate markets; Cleveland at number 4, Cincinnati is ninth and Columbus at number 10.
Click here to access the study.