A college town can be a great spot for investors. Rents are usually stable and there’s generally always a pool of tenants to choose from.
“It’s always great to invest in a location where there is a large pool of tenants, which is exactly what you get when you invest in a property near a school like Georgia Institute of Technology,” says Rory Haigler, a Redfin real estate professional.
The Georgia Institute of Technology topped Redfin’s list as the best college town investment. “The pool of potential tenants is also stable with new students coming in every year, so a property owner really doesn’t have to worry about where they will find the next tenant.”
Redfin researchers tracked the best college towns for investors, factoring in affordability in homes near the school, walkability scores, and low tuition costs and fees. The following are the 10 best college towns to buy an investment property, according to the brokerage’s research:
1. Atlanta, Georgia – Georgia Institute of Technology
Median List Price: $235,000
Tuition and Fees: $32,404
U.S. News and World Report Ranking: 34
Walk Score: 72
2. Chapel Hill, North Carolina – University of North Carolina–Chapel Hill
Median List Price: $175,000
Tuition and Fees: $33,916
U.S. News and World Report Ranking: 30
Walk Score: 35
3. Baltimore, Maryland – Johns Hopkins University
Median List Price: $154,900
Tuition and Fees: $50,410
U.S. News and World Report Ranking: 10
Walk Score: 69
4. St. Louis, Missouri – Washington University in St. Louis
Median List Price: $149,900
Tuition and Fees: $49,770
U.S. News and World Report Ranking: 19
Walk Score: 64
5. Columbus, Ohio – Ohio State University–Columbus
Median List Price: $155,000
Tuition and Fees: $28,229
U.S. News and World Report Ranking: 54
Walk Score: 40
6. Houston, Texas – Rice University
Median List Price: $239,900
Tuition and Fees: $43,918
U.S. News and World Report Ranking: 15
Walk Score: 48
7. Philadelphia, Pennsylvania – University of Pennsylvania
Median List Price: $179,900
Tuition and Fees: $51,464
U.S. News and World Report Ranking: 8
Walk Score: 78
8. Rochester, New York – University of Rochester
Median List Price: $114,900
Tuition and Fees: $50,142
U.S. News and World Report Ranking: 32
Walk Score: 64
9. Pittsburgh, Pennsylvania – University of Pittsburgh
Median List Price: $165,000
Tuition and Fees: $29,758
U.S. News and World Report Ranking: 68
Walk Score: 61
10. Cleveland, Ohio – Case Western Reserve University
Median List Price: $216,000
Tuition and Fees: $46,006
U.S. News and World Report Ranking: 37
Walk Score: 80
11. Austin, Texas – University of Texas–Austin
Median List Price: $154,900
Tuition and Fees: $34,676
U.S. News and World Report Ranking: 56
Walk Score: 39
12. Providence, Rhode Island – Brown University
Median List Price: $199,000
Tuition and Fees: $51,367
U.S. News and World Report Ranking: 14
Walk Score: 78
13. Madison, Wisconsin – University of Wisconsin–Madison
Median List Price: $259,900
Tuition and Fees: $32,738
U.S. News and World Report Ranking: 44
Walk Score: 48
14. Nashville, Tennessee – Vanderbilt University
Median List Price: $520,000
Tuition and Fees: $45,610
U.S. News and World Report Ranking: 15
Walk Score: 63
15. College Park, Maryland – University of Maryland–College Park
Median List Price: $289,900
Tuition and Fees: $32,045
U.S. News and World Report Ranking: 60
Walk Score: 69
16. Minneapolis, Minnesota – University of Minnesota–Twin Cities
Median List Price: $253,650
Tuition and Fees: $22,210
U.S. News and World Report Ranking: 71
Walk Score: 68
17. Provo, Utah – Brigham Young University–Provo
Median List Price: $228,450
Tuition and Fees: $5,300
U.S. News and World Report Ranking: 68
Walk Score: 47
18. Winston-Salem, North Carolina – Wake Forest University
Median List Price: $169,000
Tuition and Fees: $49,308
U.S. News and World Report Ranking: 27
Walk Score: 22
19. Ann Arbor, Michigan – University of Michigan–Ann Arbor
Median List Price: $359,900
Tuition and Fees: $43,476
U.S. News and World Report Ranking: 27
Walk Score: 50
20. Chicago, Illinois – University of Chicago
Median List Price: $325,000
Tuition and Fees: $52,491
U.S. News and World Report Ranking: 3
Walk Score: 78
Source: “The 20 Best College Towns to Buy an Investment Property,” Redfin Research Center (April 14, 2017)
