Is now the time to seek out an investment property? According to a new Zillow report, with rents reaching peak pricing, homeowners could see a boon by renting out their properties, as 33 of the largest 50 U.S. metros now have higher rent prices than the typical monthly mortgage payments.
Key findings:
– Memphis topped the list. In July, typical rents were $1,504 and monthly mortgage payments were only $948.
– Miami ranked second with a $522 difference between rents and mortgage payments, followed by Atlanta at $424.
The takeaway:
“For homeowners looking to explore life in a top metro for digital nomads or favorite vacation town without selling their current house, renting can open the door,” said Amanda Pendleton, Zillow home trends expert, in a statement.
“Single-family homes comprise about one-third of the nation’s total rental stock,” said Zillow Economist Alexandra Lee in a statement. “Owners who do rent out their properties can provide both much-needed rental inventory in tight markets as well as sought-after space and amenities for families looking to move up from an apartment.”
Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas to lizd@rismedia.com.
