6,000Units Under Management
Less Than 1% Eviction Rate
Avg. Time Rental Is on Market 23 Days

Rental Investment Trends and Top US Cities for Investors in 2022


Deciding where to purchase real estate in 2022 is on the mind of many rental home investors. First, however, we need to determine what the US rental market will look like for us this year. Although it’s hard to predict, given the last few years we’ve had, we can make some assumptions based on the current rental investment trends. So, let’s look at some of the top US cities for investors in 2022. 

United States Market Trends for 2022

  • Higher Home and Rent Prices
  • High Demand in Suburban Areas
  • Inventory Will Slowly Replenish
  • Homes Will Quickly Sell

Rental Investment Trends and Top US Cities for Investors in 2022

Higher Home and Rent Prices

Because of the high inflation rates, inevitably, home and rent prices will also rise this year. Although this isn’t the best news for renters, it’s excellent for rental home investors who want to make a solid profit this year. 

High Demand in Suburban Areas

With more people working from home due to the pandemic, many people are moving out of the cities and into more suburban areas. Although urban areas are generally more fast-paced, people no longer need to live closer to work. As a result, people are moving to more low-key, suburban regions more often. 

Home Inventory Will Slowly Replenish

The demand for homes in 2021 was so high that the supply could not keep up. As a result, more homes are set to slowly hit the market this year, so buyers will have more opportunities to secure a property. More homes on the market mean good news for investors who missed out on buying a home last year. 

Homes Will Sell Quickly

As soon as more real estate is added to the market, it’s set to sell quickly. Since the demand was so high in 2021, there’s no sight of it slowing down this year. That said, if you’re an investor looking to purchase a home this year, act quickly yet meticulously to secure a sale in such a competitive market. 

Where Are the Best Places to Purchase Rental Homes in the United States?

In many cities across the United States, investors have great opportunities to purchase real estate. Whether investors want to expand their rental business or buy real estate for the first time, the possibilities are abundant in 2022. So, check out some of the top investment-friendly cities and rental investment trends in the United States this year. 

Rental Investment Trends and Top US Cities for Investors in 2022

  1. Boise, Idaho
  2. Sacramento, California
  3. Salt Lake City, Utah
  4. Pheonix, Arizona
  5. Colorado Springs, Colorado
  6. Austin, Texas
  7. Nashville, Tennessee
  8. Tampa, Florida
  9. Atlanta, Georgia
  10. Charlotte, North Carolina

Best Places to Invest in Western America

Boise, Idaho

Boise is one of the best places for investors to purchase real estate. This area has a lot to offer for those who live there or around the city. Boise has something for everybody from the best restaurants to job opportunities and beautiful outdoor spaces. Additionally, homes in this area sell quickly, with rental investments offering significant returns. 

Why is Boise a Great Place to Invest in Real Estate?

  • Low Unemployment Rates
  • Good Job Opportunities
  • Dependable Population Growth

Sacramento, California

Sacramento is another excellent place for investors to consider since it’s a more affordable place to live compared to other parts of California. With that, the value of homes in this area is rising rapidly, set to increase by around 7% this year. Additionally, the average home price in Sacramento is $452,000, and monthly rent typically goes for $1,600 or higher. So, this is great for investors who are looking to make a solid return on their rental business investments. 

What Makes Sacramento a Good City to Invest in?

  • Affordable Living Compared to Other Nearby Cities
  • Booming Job Market
  • High ROI Yields
  • Great Location Close to Many Attractions

Salt Lake City, Utah

Throughout 2021, Salt Lake City saw around a 26% increase in home prices. While this may not sound too delightful for investors, it presents an excellent opportunity to purchase profitable rental properties. In addition, Salt Lake City has many activities for residents, such as skiing and hiking at many beautiful landmarks. Overall, if investors look to make significant returns on their investments, Salt Lake City presents a wonderful opportunity. 

Why Should Investors Purchase Real Estate in Salt Lake City?

  • Growing Population
  • Family-Friendly Outdoor Activities
  • Favorable Rent Prices for Investors
  • Great Long-Term Investment Area
  • Rapid Job Growth

Pheonix, Arizona

Pheonix is another place that saw an increase in home prices throughout 2021, making it a good place for investors to consider. Additionally, this large town with many residents presents many fun activities and amenities for people who live there. There are plenty of historic sights, entertainment options, and business opportunities in Pheonix, which is why people love living there. 

Why is Pheonix a Good Place to Purchase Rental Homes?

  • Rental Rates are Rising
  • Tons of Entertainment and Business Opportunities
  • Large, Growing Population

Rental Investment Trends and Top US Cities for Investors in 2022

Best Places to Invest in Middle America

Colorado Springs, Colorado

Like many large cities around the US, Colorado Springs has experienced a rise in home prices during 2021. This is great for investors since it creates an opportunity to see large profit margins on rental homes. In this city, the average home price is around $410,000, and the average monthly rent is approximately $1,400. 

Why is Purchasing Real Estate in Colorado Springs Favorable?

  • Property Values Rising
  • Rental Rates Set to Rise This Year
  • Steady Rental Investment Trends
  • Plentiful Job Opportunities
  • Steadily Growing Population

Austin, Texas

Last year, we saw a considerable increase in rental demand in Austin. So far, this year looks no different. Many people favor the strong job market and tech-oriented economy that Austin offers. These factors have created a high appreciation of home values in the area, making it an excellent place for investors to consider. The average home price in Austin is around $580,000, and the average monthly rent goes for about $1,700 or higher, depending on location. 

Why Should Rental Investors Consider Austin?

  • Growing Population
  • Rising Rent Prices
  • Great Long-Term Investment Market
  • Low Unemployment Rates

Nashville, Tennessee

According to WalletHub, Nashville is one of the top 10 places to invest in real estate this year. Being a huge city, this area offers tons of job opportunities, entertainment, and local attractions for those who live there. Similarly, with home prices increasing over the past year, this town presents an opportunity for investors to make large profits. 

Reasons Why Nashville is a Great Place to Invest

  • Affordable Real Estate Market
  • Rent Prices Rising
  • Plenty of Job Opportunities
  • Steady Population Growth

Rental Investment Trends and Top US Cities for Investors in 2022

Best Places to Invest in Eastern America

Tampa, Florida

Throughout 2021, we saw Tampa’s real estate market grow and thrive. Luckily, rental investment trends determine that this year will likely look the same. Over the last year, we’ve seen home values in Tampa rise quite rapidly. However, homes in this city are still relatively affordable compared to other large cities in Florida. Similarly, Tampa is a great place for travel and vacation rentals, which is why investors should consider buying real estate here. 

Top Reasons Why Investors Should Consider Tampa

  • Rent Prices Rising, With an average of $1,700
  • Flourishing City with Lot of Attractions
  • Affordable Real Estate Compared to Other Large Cities

Atlanta, Georgia

Being one of the largest and most populated cities in the South, Atlanta presents excellent investment opportunities. This booming city has relatively reasonable home prices and rising rent prices, making it desirable for rental business owners. Additionally, Atlanta has an attractive rental market since around 50% of households in the metro area rent rather than own a home. That said, the average home price in the area is about $350,000, and the average rent is around $1,800. 

Why is Atlanta a Good Choice for Rental Investors?

  • Increasing Property Values
  • Significant Employment Growth and Many Job Opportunities
  • Affordable Real Estate
  • Continuously Growing Population

Charlotte, North Carolina

Charlotte was one of the fastest-growing cities in 2021, with no signs of slowing down this year. That said, this city is so attractive for many people because the cost of living is lower than the national average. Similarly, the renters’ market in Charlotte is another reason investors should consider purchasing rental homes. The average home price in this city is around $370,000, and rent is typically approximately $1,765 per month. 

Why Should Investors Buy Homes in Charlotte?

  • Rent Increases Around 10% Year-After-Year
  • Renters Make-Up Around 43% of Housing Units
  • Desirable Area for Many Millenials 
  • Affordable Place to Live
  • Steady Growing Population

Need Help Navigating the Current Market Trends?

Rental Investment Trends and Top US Cities for Investors in 2022

The rental market competition has been extremely high throughout the past couple of years. So, investors need to determine the best cities to invest in real estate now rather than later. If you are an investor and need help determining current rental investment trends and managing your rental business, it’s time to reach out to the professionals. 

Once you’ve decided the best places to invest, the next step is to hire a property management team to help you organize and conduct your business. Bay Property Management Group’s full-service team is qualified to help you with almost any aspect of your rental business. 

We can help you screen new tenants, conduct maintenance, collect rent, file evictions, and more with our comprehensive services. Contact our top-notch rental management company for your properties in Maryland, Washington D.C., Northern Virginia, and Southern Pennsylvania.