In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Oregon. Three towns made our list: McMinnville, Salem, and Bend. 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.
Oregon is one of the most geographically diverse states in the U.S. Think volcanos, a plethora of water, as well as high desert and dense evergreen forests. Oregon is famous for its Pinor Noirs from the Willamette Valley, as well as a thriving tech and agriculturally driven economy. People are flocking to Oregon. It holds the number one position as the most moved to state. The three cities on our list are no exception, Bend boasts 8% year over year population growth. In addition to strong population growth, the number of days on market is less than 15 for all of our cities, and rent prices continue to steadily climb in all regions.
Oregon, My Oregon you have so many great qualities. Let’s take a look at the best places to buy an investment property in The Beaver State.
The Best Cities to Buy an Investment Property in Oregon
#3: Bend, OR
Bend has been ranked as one of the top 10 cities to move to now! It’s been dubbed the outdoor playground of the west and is world-famous for its pristine beauty. Bend has the strongest month over month rent increase, just around 6%, as well as 8% year over year population growth. Bend is most often described as “magical”, and the numbers below support that. Home values have increased 9.1% and the average number of days on the market for a rental is 10. Fun fact: Bend is home to the last remaining Blockbuster video store in the world. So grab a flick, settle in and start looking for your next rental investment property in Bend.
- Population growth: 8%
- Employment growth: 1.9%
- Increase in home values: 9.1%
Median Home Price: $480k
Average Rent: $1893
Average Number of Leads per Property: 9
Number of days on the rental market: 10
Median Home Price: $480k
#2: Salem, OR
Looking for the most Oregon part of Oregon? Hello Salem, nice to meet you. Oregon’s state capital is the second-largest city next to Portland, with a population of just over 400,000. It’s got everything you want from Oregon-wine, delicious food, rich heritage, mountains, rivers, and stunning valleys. Home value increases are strong as well, at nearly 7%. With three universities, Willamette University, Corban University, and Chemeketa Community College, and an average number of days on market clocking in at 13, finding a great tenant will be a breeze. The Cherry City is a strong pick for a rental investment property.
- Population growth: 4%
- Employment growth: 1%
- Increase in home values: 6.8%
Median Home Price: $310k
Average Rent: $1202
Average Number of Leads per Property: 12
Number of days on the rental market: 13
#1: McMinnville, OR
McMinnville is located in the northeastern corner of Oregon with a population of around 35,000. It’s got the best of Oregon-wine country, breweries, award-winning food, a quaint tree-lined historic downtown, and the best for last-a UFO Festival. Whether you are moving, investing, or landing there you will not be disappointed. McMinnville averages over 37 leads per property, with the average days on market hovering around 6. This Pacific Northwestern town is a hidden gem, home values are up 4.1% and population growth is steady at 2.2% year over year. Get in while the getting is good.
- Population growth: 2.2%
- Employment growth: 1%
- Increase in home values: 4.1%
Median Home Price: $344k
Average Rent: $1279
Average Number of Leads per Property: 37
Number of days on the rental market: 6
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.
