Here are the best and worst states to buy rental property


Factors include cost of living, crime, and taxes

Thinking of investing in rental property? There are a lot of things to consider, and one of them is where to buy the property.

Researchers at the Management Library looked at risks and rewards associated with investment property in all 50 states and found that property in some states will likely perform better than others. They not only looked at prices and rents, but also taxes, employment opportunities and quality of life.

South Carolina was the clear winner. It’s a beautiful, diverse state. It has mountains and the seashore. 

There are charming – albeit expensive – cities like Charleston and no shortage of people who would like to live there. It’s one of the top destinations in the nation for retirees who are relocating.

It also has some of the lowest property taxes in the nation at 0.57%. The average home costs around $170,000.

The not so good places

On the other end of the scale is Louisiana. Its taxes aren’t that high and property isn’t that expensive, but rents tend to be low because of the widespread poverty in the state.

Louisiana also doesn't offer much in the way of job growth. It also scores low in healthcare and education, two factors that tend to attract middle-class tenants. 

It also has one of the highest crime rates per capita in the country. Crime has increased significantly in recent years in the state’s largest city, New Orleans.

In spite of its natural beauty, Hawaii is only slightly better. Researchers say the main reason the islands are not a great place for rental property is the high cost of homes. The overall high cost of living leaves very little to pay rent.

The 10 best states

  1. South Carolina

  2. Idaho

  3. North Carolina

  4. Florida

  5. Tennessee

  6. Colorado

  7. Arizona

  8. California

  9. Indiana

  10. Texas

The 10 worst states

  1. Louisiana
  2. Hawaii
  3. New Mexico
  4. Mississippi
  5. Wisconsin
  6. Michigan
  7. West Virginia
  8. New York
  9. South Dakota
  10. Illinois

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