Hottest Zip Codes for Rental Property Investment in 2022 | Avail (2024)

Amidst challenges like increased prices and mortgage rates, those in search of homeownership are turning to areas outside of high-priced metropolitan areas. For landlords, recognizing these hot zip codes could provide valuable insight as to where to invest in your next rental property.

Realtor.com® has put together a list of areas currently favored in the real estate market. Using Realtor.com® housing market data, these are the hottest zip codes for rental property investment in 2022:

1. Brighton, NY

Located in the Rochester metropolitan area, Brighton offers a dense suburban feel to its residents. An abundance of bars, restaurants, and coffee shops make the area appealing for young professionals, while highly-rated schools are a major draw for families. The proximity to Rochester also makes it easy to find a way to spend the weekend on Lake Ontario.

In addition to the several draws of Brighton, the median listing price is more than 40% below the national average in July, making it a compelling location for investors to explore. But don’t wait — properties stay on the market for an average of six days before selling, so you’ll want to be quick to claim your next rental in this area.

• Zip code: 14618
• Metro Area: Rochester, NY
• Average purchase price: $275,000
• Average time on market: 6 days

2. Nashua, NH

Proximity to beaches, lakes, and mountains, a thriving downtown, and renowned schools make Nashua a popular choice to call home. Located 35 miles northwest of Boston, this city is a viable place to live for commuters — particularly those who don’t need to be in the office every day.

This city has garnered a lot of attention, and while there’s been a 27% increase in the median listing price reported by Realtor.com®, this growth reflects the interest in the area. More than one-third of shoppers from out of the area look for residences in Nashua.

• Zip code: 03062
• Metro Area: Manchester-Nashua, NH
• Average purchase price: $536,000
• Average time on market: 7 days

3. Worthington, OH

Situated north of Ohio’s state capital, Worthington, OH, is a small town that will give your renters the sparse suburban feel they seek. Meanwhile, landlords will also find plenty of value in investing in a rental property here.

The median listing price is $467,000, but prices start at around $250,000. The large selection of single-family homes makes Worthington an excellent place for new and established families, and downtown Columbus is only a 20-minute drive if a change of scenery is needed.

• Zip code: 43085
• Metro Area: Columbus, OH
• Average purchase price: $467,000
• Average time on market: 7 days

4. Derry, NH

Derry is a location for those seeking a community that feels more rural. Realtor.com® highlights listings situated along the edge of Beaver Lake, as well as options located in thick forests with plenty of space from neighbors. The average rental cost is also notable at $2,995.

The downtown area is appealing as well, and residents can enjoy the quaint, walkable environment with restaurants, breweries, a history museum, and more.

Properties in this area have been getting more than three times the average views, and also sell relatively quickly. Keep this in mind when searching for a rental investment in this zip code.

• Zip code: 03038
• Metro Area: Boston-Cambridge-Newton, MA-NH
• Average purchase price: $447,000
• Average time on market: 7 days

5. Windham, ME

With New England zip codes surging in popularity, Windham is not an area to be overlooked. Its location on Sebago Lake offers plenty of waterfront activities while other popular activities like hiking and antique shops are also easy to find.

This smaller town of about 18,000 offers a unique experience, and the abundant single-family homes average 1,920 square feet of living space. Despite recent price increases, the homes in Windham are, on average, less expensive than other options in the surrounding metro area.

• Zip code: 04062
• Metro Area: Portland-South Portland, ME
• Average purchase price: $505,000
• Average time on market: 10 days

6. Bethlehem, PA

Based on Realtor.com® data, Bethlehem has seen the greatest increase in median home prices since 2021 — more than 50%. The 18017 zip code is made up of suburbs on the northeast edge of town and large single-family homes that average approximately 2,700 square feet of living space.

If the rolling hills and stone bridges of the area aren’t enough of a draw, another advantage of this zip code is the proximity to New York City — approximately 90 minutes away — and Philadelphia, which is only about an hour’s drive from this area.

• Zip code: 18017
• Metro Area: Allentown-Bethlehem et al, PA-NJ
• Average purchase price: $424,000
• Average time on market: 8 days

7. Johnson City, TN

Johnson City stands out from other zip codes on this list. It’s not in the Northeast, nor is it within reasonable commuting distance to a large city. Despite this, the area has become a more affordable alternative to Asheville, NC, approximately an hour south.

In addition to the rivers, lakes, mountains, and outdoor lifestyle that the area offers, Johnson City also offers its residents a drastically lower price compared to major cities like Nashville and Knoxville. This benefit makes investing in this region a worthwhile option.

• Zip code: 37604
• Metro Area: Johnson City, TN
• Average purchase price: $329,000
• Average time on market: 10 days

8. Hooksett, NH

Another sparse suburban neighborhood, Hooksett is conveniently located about 20 minutes south of New Hampshire’s state capital, Concord. What sets this area apart from other New Hampshire hotspots is the privacy and seclusion it provides. There’s no definite downtown area, but that likely won’t be missed by those who prefer a larger home and more space to themselves.

Residences in Hooksett average around 2,200 square feet, so there are plenty of large single-family homes to invest in. And with attention coming from Boston and its surrounding area, there are plenty of opportunities to see the return on a rental investment.

• Zip code: 03106
• Metro Area: Concord, NH
• Average purchase price: $482,000
• Average time on market: 10 days

9. North Attleboro, MA

With parts of the area dating back as far as the late 17th century, North Attleboro has seen a revitalization in the past several years. This suburb of the larger Providence, RI, metro area offers a rich history while redevelopment projects breathe new life into the downtown area.

While this zip code boasts the highest average price of $587,000, the homes here sell faster than any other area on the list. Single-family homes are abundant, but mixed-use multifamily housing options are also appearing and may attract even more prospective residents looking for a place to rent.

• Zip code: 02760
• Metro Area: Providence-Warwick, RI-MA
• Average purchase price: $587,000
• Average time on market: 5 days

10. Auburn, ME

Located on the west side of the Androscoggin River, Auburn is an area favored for an abundance of outdoor options. Residents can wander the trails of Mount Apatite, enjoy time at a local ski resort, or spend time on the water at the river walk.

Auburn is a smaller town but also boasts the smallest median home prices on the list – 40% lower than the national average according to Realtor.com® data. Current listings average 1,600 square feet but could be ideal for those who would rather be outside than in.

The attention on Auburn comes from the pricier Portland area, as well as Boston, so it’s likely that landlords won’t have to worry about their properties not garnering attention.

• Zip code: 04210
• Metro Area: Lewiston-Auburn, ME
• Average purchase price: $267,000
• Average time on market: 12 days

Methodology: Realtor.com® analyzed listings data on over 29,000 ZIP codes to determine its Hottest ZIP Code rankings, which are based on January-June 2022 averages of: 1) demand, as measured by unique viewers per property on Realtor.com®; 2) the pace of the market as measured by the number of days a listing remains active on Realtor.com®; limited to one ZIP Code per metropolitan area and ZIP Codes with at least 15 active listings each month. Time frames for metrics not factored into the ranking as noted, e.g. listing price trends based on June 2022 data.

Note: The markets where Realtor.com®’s “Hot Market Insights” are featured on listings and neighborhoods on its website may vary from the 2022 Hottest ZIP Codes, due to methodology differences such as time frames (monthly data updated each month vs. Jan.-June 2022 data).