York neighborhood named top in the country for rental returns

The Southwest York neighborhood in central Pennsylvania has the third highest rental return in high-rated neighborhoods in the country.

According to ATTOM Data Solutions, who analyzed more than 2,100 neighborhoods with an A rating, the Southwest York area had, on average, a return of 35.8 percent. The central Pennsylvania neighborhood fell behind only Fayetteville, North Carolina and Saraosta, Florida. In neighborhoods with A ratings, the average annual rent appreciate is 9.2 percent, and the average fair market rent is $2,132.

“I’m finding that homes in the $100,000 to $200,000 price range are selling rapidly, indicating a shortage in supply. This price range is typically the price range of single-rental properties. Rental prices are rising faster than sale prices, thus making for a great time to invest in rental properties,” said Ray Hoover, a Realtor® in York.

In the Southwest York neighborhood, for the first half of 2018, the median home price was $37,200, and the median income for households in the area was $29,527.

Receiving an A rating depends on the neighborhood’s affordability, home price appreciation, school scores, crime rates, unemployment rates and property taxes. The median annual home price appreciation is 21 percent for homes in these neighborhoods, while the median price is $513,968. The gross flip return is 48.2 percent. Neighborhoods with poorer ratings have lower-costing homes, but higher rent appreciation and gross flipping return. Across Pennsylvania, many neighborhoods have received an A rating for rental returns, making the commonwealth a great place to invest in a rental property.