In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Massachusetts. Three towns made our list: Taunton, Quincy, and Worcester. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Massachusetts is the most populous state in the New England region. It borders on the Atlantic Ocean to the east, the states of Connecticut and Rhode Island to the south, New Hampshire and Vermont to the north, and New York to the west. Not only do they have wicked sweet accents, but this original state also has one of the oldest and most beloved ballparks, gorgeous beaches, twelve ski areas, the Berkshires, and Martha’s Vineyard. Massachusetts is a global leader in biotechnology, engineering, higher education, finance, and maritime trade.
All of the towns on the Massachusetts edition of the best places to buy rental investment property have deep history and charm. Let’s take at look at our top cities to invest in The Bay State.
#3: Worcester, MA
Worcester is the second-most populous city in New England next to Boston. It’s about 40 miles west of Boston and is known as “The Heart of the Commonwealth” complete with a heart as the cities official symbol. Worcester’s home values have increased the most out of all of the towns on the list, coming in at an 8.5% increase year over year. Leads per property are very strong, averaging 87 with as little as 12 days on the market. The median sale price is $252k and rents are strong at $1306. We heart this investment property, and you should too.
- Population growth: .4%
- Employment growth: 1%
- Increase in home values: 8.5%
Median Home Price: $252k
Average Rent: $1306
Average Number of Leads per Property:87
Number of days on the rental market: 12
#2: Quincy, MA
Quincy, part of Metropolitan Boston and one of Boston’s immediate southern suburbs, is known as the City of Presidents. Quincy is the birthplace of two U.S. presidents—John Adams and his son John Quincy Adams—as well as John Hancock, a president of the Continental Congress and the first signer of the Declaration of Independence. Its population hovers just below 100k, making it the eighth-largest city in the state. Home values are on the rise at a 5.1% increase year over year. With a median sale price of $460k, the average rent price at $2083, and a record 128 leads per property finding a tenant in around 9 days is the status quo. Quincy was also named one of the top places to live by Boston Magazine. Quincy is our #2 choice to drop some Benjamins on.
- Population growth: .5%
- Employment growth: 1.5%
- Increase in home values: 5.1%
Median Home Price: $460k
Average Rent: $2083
Average Number of Leads per Property: 128
Number of days on the rental market: 9
#1: Taunton, MA
Taunton is located about 40 miles south of Boston and is situated on the Taunton River which winds its way through the city on its way to Mount Hope Bay. Taunton is one of the oldest cities in the U.S., founded in 1637 by members of the Plymouth Colony. Taunton is our number one pick for Massachusetts investment opportunities, and with an average of 304 leads per property, it’s no surprise. The average number of days on the market is 19 and rent and home values are strong at $1418 and $295k respectively. The Silver City gets our gold when it comes to rental investment properties.
- Population growth: 1.6%
- Employment growth: 1.1%
- Increase in home values: 2%
Median Home Price: $295k
Average Rent: $1418
Average Number of Leads per Property: 304
Number of days on the rental market: 19
Honorable Mention: Cambridge, MA
Situated directly north of Boston, across the Charles River. Cambridge is home to Harvard University, the Massachusetts Institute of Technology (MIT), Lesley University, and Hult Business School. The median sale price peaked in January of this year but has steadily been decreasing to a more affordable range. While Cambridge is one of the more expensive mentions on the list, it is on our watch list for rental property investing.
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
Methodology:
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
Sources:
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.
