Solid Neighborhoods with Stellar Real Estate Returns

Buying an investment property in a good neighborhood doesn’t have to mean sacrificing high investment returns — if you know where to look and are willing to look outside your backyard.

Among more than 1,000 U.S. zip codes with an A rating in the first-ever ATTOM Data Solutions Neighborhood Housing Index, the median home sales price in Q1 2017 was $410,684 on average, but the median sales price in 382 of those zip codes was under $250,000, with 27 zips below $100,000. This low-priced housing inventory in quality neighborhoods translates into stellar returns with lower risk for home flippers and rental investors.

The info graphic below shows the top 5 A-rated zip codes in terms of highest home flipping returns in 2016 and highest potential annual rental gross yields in 2017.

The ATTOM Data Solutions 2017 Neighborhoods Index analyzed more than 5,000 U.S. zip codes for five factors impacting neighborhood quality: home price appreciation, affordability (price to income ratio), school scores, crime rate, unemployment rate, environmental hazard risk, and property tax rate, with double weight in the index for school scores, crime rate and affordability. For this analysis ATTOM also appended home flipping data and rental return data, and for the top five lists above only include zip codes where the average school score was above the state average and the crime rate was below the national average.

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