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The Top 20 ZIP Codes with the Highest Real Estate Returns

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Investing in Real estate

Real estate investing

Real Estate is a tricky investment for those with little knowledge or skill. This information is an average and does not apply to every situation. Some agents and brokers in a certain situation can get an investor or a first time home owner a greater return if the agent/broker is skilled in the real estate field.  At Mills Realty our agents can identify such investment. Right now we will look at the average the annualized total return

Americans are increasingly investing in real estate to reap the rewards, which makes investing in the right ZIP code crucial. To mitigate risk and earn the highest real estate returns, investors should focus assets that can maintain value even during downturns, Hovland said.

Your ZIP code is a pretty important piece of an address, especially when it comes to the real estate market. HomeUnion, an online real estate investment management firm, identified zip codes in 20 metros that maximize real estate returns while minimizing risk over a five-year horizon. They examined school quality and neighborhood attractiveness for single-family rentals over five years.

“HomeUnion Research Services looked at more than a dozen attributes that characterize a neighborhood including crime, schools, white-collar jobs, unemployment, homeownership, permitting activity, etc.,” said Steve Hovland, director of research for HomeUnion. “Based on those attributes, we forecast appreciation, vacancy and rent changes over the next five years.”

The study calculated Annualized Total Return, which includes HomeUnion’s projections for how much the value of single-family rentals will appreciate and how much cash flow they’re expected to generate. According to Hovland, HomeUnion’s model can determine the price and rent for every single-family home within a specific zip code and allow them to predict the price and rent in five years.

Remember, when it comes to real estate, ZIP codes aren’t the only numbers that matter. Without a good credit score, financing a real estate investment can be difficult and costly. See where you stand and check your credit score for free at Credit.com  or Credit Karma.com. Here are the top ZIP codes with the highest real estate returns.

20. 46280

Submarket: North Indianapolis, Ind.

Metro area: Indianapolis

Annualized total return: 5.4%

19. 91602

Submarket: North Hollywood, Calif.

Metro area: Los Angeles

Annualized total return: 5.4%

18. 73003

Submarket: Edmond, Okla.

Metro area: Oklahoma City, Okla.

Annualized total return: 5.4%

17. 63043

Submarket: Maryland Heights, Mo.

Metro area: St. Louis

Annualized total return: 5.5%

16. 85259

Submarket:  North Scottsdale, Ariz.

Metro area: Phoenix

Annualized total return: 5.5%

15. 77059

Submarket: Clear Lake City, Texas

Metro area: Houston

Annualized total return: 5.6%

14. 75022

Submarket:  Flower Mound, Texas

Metro area: Dallas

Annualized total return: 5.6%

13. 44023

Submarket:  Chagrin Falls, Ohio

Metro area: Cleveland

Annualized total return: 5.6%

12. 34677

Submarket: Oldsmar, Fla.

Metro area: Tampa

Annualized total return: 5.7%

11. 97224

Submarket: King City, Ore.

Metro area: Portland, Ore.

Annualized total return: 5.8%

10. 30078

Submarket: Snellville, Ga.

Metro area: Atlanta

Annualized total return: 5.8%

9. 45255

Submarket:  Forestville/Cherry Grove, Ohio

Metro area: Cincinnati

Annualized total return: 5.9%

8. 60016

Submarket: Des Plaines, Ill.

Metro area: Chicago

Annualized total return: 6%

7. 66223

Submarket: Overland Park, Kansas

Metro area: Kansas City, Mo.

Annualized total return: 6.2%

6. 37062

Submarket: Fairview, Tenn.

Metro area: Nashville, Tenn.

Annualized total return: 6.5%

5. 33327

Submarket: Weston, Fla.

Metro area:  Fort Lauderdale, Fla.

Annualized total return: 6.6%

4. 33158

Submarket: Palmetto Bay, Fla.

Metro area: Miami

Annualized total return: 6.8%

3. 48322

Submarket: West Bloomfield Township, Mich.

Metro area: Detroit

Annualized total return: 6.9%

2. 19035

Submarket: Gladwyne, Penn.

Metro area: Philadelphia

Annualized total return: 6.9%

1. 33434

Submarket: Hamptons at Boca Raton, Fla.

Metro area: West Palm Beach, Fla.

Annualized total return: 8.1%

 

Paige DiFiore is the Editorial Assistant at Credit.com and is a Journalism student at Marist College and the blogger behind eyelinerwingsandprettythings.com. She loves soft kittens, sharp wit, and even sharper eyeliner wings. More by Paige DiFiore
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Edward Winfrey

Edward S. Winfrey is the Founder/CMO of Nikindi Business Solutions (NBS Global). NBS Global is a marketing Consulting firm located in Chicago Illinois. We at NBS Global specialize in everything in the marketing dimension. We conduct all marketing activities and also function as an external marketing department for some firms. An “external marketing department (EMD)” is when a consultant firm develops a marketing department for the purpose of establishing a marketing department to later turn the duties over to group of new internal employees who will become the primary MKT department once they are trained properly on the new activities, strategies and tactics that were designed and created my the consultant firm.