8 Best Markets for Investing in Single Family Homes for Sale in 2022

Have you ever wondered why more investors are buying single family homes for sale and renting them out on Airbnb?

Well, there’s a reason: single family homes are the new gold rush!

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If you’re looking to invest in real estate, it’s critical to know which markets will offer you the highest returns. To give you a headstart, this article will provide a list of the best SFR markets in the USA in 2022 based on cash on cash return and job growth. This is based on Mashvisor’s data on single family home rentals in June 2022.

But before we look at these best markets for single family homes for sale in 2022, let’s see why more investors are looking into single family rentals and Airbnb single family homes right now.

Why Invest in Single Family Homes for Sale Right Now?

According to a report by PWC, demand for single family homes is expected to surge over the next decade. The “demand for shelter, constrained by an inadequate supply of new development and construction” will drive the demand for single family rentals from now till 2030, according to the Emerging Trends in Real Estate 2022 report by PwC and the Urban Land Institute (ULI).

In fact, we’re already seeing an uptick in investor interest in single family rentals right now—up 80.2% year-over-year, based on Redfin stats back in November 2021.

But why is all this happening? Why are investors—both institutional and small—investing in single family rentals right now?

Well, for starters, the COVID-19 pandemic led many people to move out of apartments in cities and into houses with more space. And investors are taking notice!

Some big names are already investing in single family homes: Swiss-based private equity firm, Partners Group acquired $1 billion worth of single family rental homes across 17 states in the Sunbelt region in the first quarter of 2022. Small-scale investors can also benefit from single family rentals and Airbnb single family homes if they choose the right location.

Learn More: Advantages & Disadvantages of Investing in Single Family Homes

Best Rental Markets for Single Family Homes 2022

It’s no secret that there are some pretty hot markets for single family homes right now. But if you’re looking to invest in a rental property in the 2022 housing market, you might be surprised to hear that the popular markets may not actually give you the best returns on your investment. Based on Mashvisor’s latest data, here are the top 10 best rental markets for single family homes in 2022.

1. Tipton, IN

Tipton, Indiana is a small town with a close-knit atmosphere. It has a population of roughly 5,000 plus residents, with the median age being 44 years old.

The town is close to Indianapolis and Kokomo, both within 30 minutes of the city limits. It is also near other large metropolitan areas including Fort Wayne and Chicago. The average commute time for Tipton residents is approximately 25 minutes.

According to Apartmentguide, 29% of residents rent their homes in Tipton while 71% own them outright or with a mortgage.

Mashvisor stats on single family homes in Tipton, IN:

Number of Listings for Sale: 5
Median Property Price: $147,980
Average Price per Square Foot: $92
Days on Market: 33
Monthly Traditional Rental Income: $1,616
Traditional Cash on Cash Return: 8.94%
Traditional Cap Rate: 9.43%
Price to Rent Ratio: 8
Walk Score: 62

Why Is Tipton One of the Best Places for SFH Rental Cash Flow?

If you’re looking for a place to invest in single family houses for sale that are affordable and have good cash flow, look no further than Tipton, IN.

Tipton has seen its job market increase by 5.5% over the last year, according to Bestplaces.net. It is predicted to see even more growth over the next 10 years with 42.5% predicted job growth. That’s higher than the national average of 33.5%.

The median property price in Tipton is $147,980 with a price to rent ratio of 8. You’ll find cheap houses for sale that are delivering good returns here. With cash on cash return of 8.94%, investing in single family homes for sale in Tipton, IN seems like a smart investment.

2. Alturas, CA

Alturas, CA has an abundance of wilderness and natural beauty, and its location means that it’s far away from the hustle-and-bustle of your average city life.

It sits in Modoc County, which means you’ll have access to some of the most beautiful forests in Northern California. The Modoc National Forest offers outdoor enthusiasts an abundance of recreational opportunities including fishing, hiking, hunting and skiing.

Mashvisor stats on single family homes for sale in Alturas, CA:

Number of Listings for Sale: 10
Median Property Price: $288,722
Average Price per Square Foot: $164
Days on Market: 115
Monthly Traditional Rental Income: $3,152
Traditional Cash on Cash Return: 8.50%
Traditional Cap Rate: 8.72%
Price to Rent Ratio: 8
Walk Score: 53

Why Is Alturas One of the Best Places for SFH Rental Cash Flow?

With cash on cash return of 8.50%, investing in Alturas single family homes for sale seems like a sound investment.

Although job growth in Alturas has been very slow, Alturas’s cost of living is 19.5% lower than the U.S. average. This makes it one of the most affordable places to live in California and drives rental demand in the area. The median property price in Alturas is $288,722, which is well below the national average of $375,000.

3. Ajo, AZ

Ajo is a small town, which means the cost of living is low. The major employer of labor in Ajo is the Phelps Dodge Corporation. The town is also close to all the sights and sounds of the Sonoran Desert—the Cabeza Prieta National Wildlife Refuge and Organ Pipe Cactus National Monument are just a quick drive away.

In wintertime, Ajo is one of the best snowbird destinations in all of Arizona. The population swells during this time by 4,000 as tourists visit surrounding RV parks and campgrounds.

Mashvisor stats on single family homes for sale in Ajo, AZ:

Number of Listings for Sale: 5
Median Property Price: $164,500
Average Price per Square Foot: $108
Days on Market: 80
Monthly Traditional Rental Income: $1,271
Traditional Cash on Cash Return: 7.51%
Traditional Cap Rate: 8.03%
Price to Rent Ratio: 11
Walk Score: 30

Why Is Ajo One of the Best Places for SFH Rental Cash Flow?

As a small town located just south of Tucson, Ajo has seen its job market increase by 2.0% over the last year. Bestplaces.net predicts that future job growth in this area over the next ten years will be 35.1%, which is higher than the US average of 33.5%. With cash on cash return of 7.51%, investing in Ajo single family homes for sale seems like a smart investment. Ajo also has a price to rent ratio that favors buying—at 11. The median property price is $164,500, making it one of the most affordable places to buy single family houses for sale in Arizona.

4. Windsor, MO

Windsor is a small town located near Sedalia and Whiteman Air Force Base; it’s also close to Truman Lake. The town is made up of close to 3,000 residents in both Henry and Pettis Counties.

Windsor offers a rural feel and most residents own their homes. The town sits in West Central Missouri at the intersection of five state highways, making it an excellent location for commuters who work in Sedalia or elsewhere. It also sits at the intersection of the famous Katy Trail and Rock Island Spur (a bike trail that leads into Kansas City).

Mashvisor stats on single family homes in Windsor, Missouri:

Number of Listings for Sale: 6
Median Property Price: $140,717
Average Price per Square Foot: $120
Days on Market: 29
Monthly Traditional Rental Income: $1,242
Traditional Cash on Cash Return: 7.34%
Traditional Cap Rate: 7.85%
Price to Rent Ratio: 9
Walk Score: 45

Why Is Windsor One of the Best Places for SFH Rental Cash Flow?

Despite a decrease in jobs, the cost of living here is 27.3% below the US average. And with a cash on cash return of 7.34%, investing in Windsor single family homes for sale seems like a good investment.

The median property price of $140,717 for single family homes is also affordable. This is especially true when you consider that the price to rent ratio is 9, meaning that investors can get good ROI because they’ll find a slew of cheap homes for sale here.

5. Liverpool, NY

Liverpool, NY offers a quiet lakeside retreat with a small-town feel. This adorable small village is located on the shore of Skaneateles Lake, about 2 hours north of Syracuse. The village is approximately one square mile in size and has a population of 2,600 residents. Over 35,000 people travel through the village daily.

The name was adopted from the city of Liverpool in the United Kingdom, which was founded in 1207 and is one of England’s most prominent cities.

Mashvisor stats on single family homes for sale in Liverpool, NY:

Number of Listings for Sale: 15
Median Property Price: $226,127
Average Price per Square Foot: $139
Days on Market: 56
Monthly Traditional Rental Income: $2,635
Traditional Cash on Cash Return: 7.27%
Traditional Cap Rate: 7.58%
Price to Rent Ratio: 7
Walk Score: 42

Why Is Liverpool One of the Best Places for SFH Rental Cash Flow?

Liverpool, New York is a great place to invest in single family homes. The city has a thriving economy, with a median household income of $70,457 a year—about $18,000 higher than the national average.

The average cash on cash return for Liverpool single family homes is 7.27%. Liverpool’s property price to rent ratio is 7, which means that it’s an affordable market for investing in single family houses for sale.

Best Airbnb Markets for Single Family Homes 2022

Here are the top Airbnb real estate markets for single family homes in 2022:

6. Linton, IN

With a population of just over 5,000 people, Linton is a quaint town that offers its residents a pleasant quality of life. For those looking for an escape from the hustle and bustle of city life, Linton is the perfect place. The area around Linton offers many outdoor recreational opportunities for those who love nature.

Places to visit include Goose Pond Fish and Wildlife Area (a migratory bird refuge), Hillenbrand Fish & Wildlife Area, and Piankeshaw Trails Educational Park. Boating, fishing, hunting, camping, as well as sports like archery are available in the Greene-Sullivan State Forest.

Mashvisor stats on Airbnb single family homes in Linton, IN:

Number of Listings for Sale: 7
Median Property Price: $223,086
Average Price per Square Foot: $113
Days on Market: 18
Monthly Airbnb Rental Income: $2,515
Airbnb Cash on Cash Return: 9.99%
Airbnb Cap Rate: 10.46%
Airbnb Daily Rate: $146
Airbnb Occupancy Rate: 53%
Walk Score: 69

Why Is Linton One of the Best Places for Airbnb Single Family Homes?

Home appreciation in Linton has been 15% over the last 10 years according to Bestplaces.net. With an Airbnb cash on cash return of 9.99%, investing in Linton, IN single family homes for sale seems like a smart investment.

The median property price in Linton is $223,086, making it one of the best rental markets for cash flow in regards to Airbnb single family homes.

7. Hampden, ME

Hampden, Maine is a great place for Airbnb single family rental investing. The town is ranked Maine’s second-safest town and has a population of 4,122, according to Worldpopulationreview.com. It has close to median housing prices and a largely rural feel, with a few nice parks along the Penobscot River.

The University of Maine, the University of Maine at Augusta, the University of Maine at Farmington, and Saint Joseph’s College are all near Hampden.

Mashvisor stats on Airbnb single family homes in Hampden, ME:

Number of Listings for Sale: 21
Median Property Price: $399,770
Average Price per Square Foot: $136
Days on Market: 34
Monthly Airbnb Rental Income: $2,268
Airbnb Cash on Cash Return: 9.92%
Airbnb Cap Rate: 10.49%
Airbnb Daily Rate: $115
Airbnb Occupancy Rate: 69%
Walk Score: 35

Why Is Hampden One of the Best Places for Airbnb Single Family Homes?

Hampden has a burgeoning economy. The median household income of a resident in this town is $86,597 per year. In comparison, the US average is $53,482 per year.

But it gets better! With an Airbnb cash on cash return of 9.92%, investing in Hampden, ME Airbnb single family homes seems like a good investment. Its in-town attractions along with its proximity to Bangor make Hampden one of the most desirable markets for investing in Airbnb single family homes.

8. Taneytown, MD

Taneytown is found in the northwest portion of Carroll County. It’s nearly two miles east of Frederick County and three miles south of Adams County, Pennsylvania. It is also within close proximity to Gettysburg National Military Park and Antietam National Battlefield.

Taneytown has several attractions, including the Taneytown Historic District, Roth Recreational Park, Taneytown Memorial Park, and Roberts Mill Park.

Mashvisor stats on Airbnb single family homes in Taneytown, MD:

Number of Listings for Sale: 9
Median Property Price: $578,300
Average Price per Square Foot: $303
Days on Market: 21
Monthly Airbnb Rental Income: $5,163
Airbnb Cash on Cash Return: 9.89%
Airbnb Cap Rate: 10.12%
Airbnb Daily Rate: $228
Airbnb Occupancy Rate: 52%
Walk Score: 48

Why Is Taneytown One of the Best Places for Airbnb Single Family Homes?

With an Airbnb cash on cash return of 9.89% and a home appreciation rate of 36.9% over the last ten years according to Bestplaces.net, investing in Taneytown, MD Airbnb single family homes seems like a wise investment. The median property price in Taneytown maybe be relatively high at $578,300, but the 9.89% cash on cash return ensures a solid return on investment.

Conclusion

There you have it! Now you’ve seen some of the best markets to invest in single family homes for sale in 2022. How do you find the right properties in these markets? You can try the traditional way—check the MLS real estate listings.

But one of the best ways to find SFR property for sale is the Mashvisor Property Finder, where you can filter your search by location, price range, and more. You can also use the tool to analyze the profitability of a property.

Source: https://www.mashvisor.com/blog/single-family-homes-for-sale-2022/