Tampa, Florida is ranked #2 among the best U.S. cities to own investment property in 2016, partially because median rent is $1,400 while median home value is below the national median.
The GOBankingRates report concluded that Tampa’s median rent enabled real estate investors to pay off investment properties with rental proceeds more quickly.
Now in this article, we want to further explore rent prices in Tampa by reviewing the November 2016 Tampa Rent Report by Apartment List. Though this report is focused exclusive on apartments, it gives us valuable information about rents for multifamily homes.
Perhaps most importantly in the Apartment List report, we learn that Tampa has the fastest growing apartment rent prices in Florida, yet the median rent is below the national average.
The Apartment List Report
First, let’s break down the data used to show that apartment rents in Tampa are currently growing faster than any other city in Florida.
As of the November 2016 report on ApartmentList.com, rents decreased by 0.5% month-over-month, but they are up 3.7% year-over-year. A one-bedroom apartment in Tampa currently has a median rent of $1,000, while the median rent for a two-bedroom apartment is $1,200.
Though Tampa’s rental rates are rising, they are still below the national average of $1,231, which is one of the reasons Tampa is a perfect location for real estate investing.
What This Means for Investors
Rising rent prices in a major metropolitan area are positive, especially when they are below the national median.
Both the GOBankingRates and Apartment List reports show that Tampa has rising rental prices, yet rentals are very well priced by national standards.
Rising rent prices give property investors pricing power, which translates into more cash flow. With the cash, investors can pay off their investment more quickly, force appreciation through improvements, and glean higher profits.
For this reason, among others, GOBankingRates ranked Tampa the second-best U.S. city for owning investment property in 2016.
Graystone Investment Group
Graystone Investment Group is an experienced Investment Group, wholesaling single-family and multifamily investment properties in metro Tampa Bay.
Unlike other wholesaling groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.