The 20 Best College Towns to Buy an Investment Property - 5 Arch Funding

The 20 Best College Towns to Buy an Investment Property

Posted by Alanna Finn on May 16, 2017

Reprinted with permission from Redfin

Investing in a home near a college has some undeniable perks—rent prices are typically stable, there’s always a new pool of tenants looking for places to live, and if you eventually decide to live in the home yourself, there are often a myriad of great amenities nearby. To help you decide where to invest your money, we narrowed down the most affordable college towns with schools that also offer low tuition and a high-quality education. Our methodology includes tuition cost and fees, the most recent U.S. News and World Report ranking, median list price for homes near the school and Walk Score.

“It’s always great to invest in a location where there is a large pool of tenants, which is exactly what you get when you invest in a property near a school like Georgia Institute of Technology,” said Redfin real estate agent Rory Haigler. “The pool of potential tenants is also stable with new students coming in every year, so a property owner really does not have to worry about where they will find the next tenant. I have had a lot of clients looking to invest in property near Georgia Tech, but the problem is that because it is such a hot market, homes are not listed often,” Haigler explains.

“It is not just a great location for students to rent,” says Haigler, “but also a great option if an investor ever decides to live in their investment home given that the school is in the heart of a major metro area with everything to offer in terms of entertainment, culture, and food.”

Here are the 20 best college towns to buy an investment property:

1 – Atlanta, GeorgiaGeorgia Institute of Technology

Median List Price: $235,000

Tuition and Fees: $32,404

U.S. News and World Report Ranking: 34

Walk Score: 72

2 – Chapel Hill, North CarolinaUniversity of North Carolina–Chapel Hill

Median List Price: $175,000

Tuition and Fees: $33,916

U.S. News and World Report Ranking: 30

Walk Score: 35

3 – Baltimore, MarylandJohns Hopkins University

Median List Price: $154,900

Tuition and Fees: $50,410

U.S. News and World Report Ranking: 10

Walk Score: 69

4 – St. Louis, MissouriWashington University in St. Louis

Median List Price: $149,900

Tuition and Fees: $49,770

U.S. News and World Report Ranking: 19

Walk Score: 64

5 – Columbus, OhioOhio State University–Columbus

Median List Price: $155,000

Tuition and Fees: $28,229

U.S. News and World Report Ranking: 54

Walk Score: 40

6 – Houston, TexasRice University

Median List Price: $239,900

Tuition and Fees: $43,918

U.S. News and World Report Ranking: 15

Walk Score: 48

7 – Philadelphia, PennsylvaniaUniversity of Pennsylvania

Median List Price: $179,900

Tuition and Fees: $51,464  

U.S. News and World Report Ranking: 8

Walk Score: 78

8 – Rochester, New YorkUniversity of Rochester

Median List Price: $114,900

Tuition and Fees: $50,142

U.S. News and World Report Ranking: 32

Walk Score: 64

9 – Pittsburgh, PennsylvaniaUniversity of Pittsburgh

Median List Price: $165,000

Tuition and Fees: $29,758

U.S. News and World Report Ranking: 68

Walk Score: 61

10 – Cleveland, OhioCase Western Reserve University

Median List Price: $216,000

Tuition and Fees: $46,006

U.S. News and World Report Ranking: 37

Walk Score: 80

11 – Austin, TexasUniversity of Texas-Austin

Median List Price: $154,900

Tuition and Fees: $34,676

U.S. News and World Report Ranking: 56

Walk Score: 39

12 – Providence, Rhode IslandBrown University

Median List Price: $199,000

Tuition and Fees: $51,367

U.S. News and World Report Ranking: 14

Walk Score: 78

13 – Madison, WisconsinUniversity of Wisconsin–Madison

Median List Price: $259,900

Tuition and Fees: $32,738

U.S. News and World Report Ranking: 44

Walk Score: 48

14 – Nashville, TennesseeVanderbilt University

Median List Price: $520,000

Tuition and Fees: $45,610

U.S. News and World Report Ranking: 15

Walk Score: 63

15 – College Park, MarylandUniversity of Maryland–College Park

Median List Price: $289,900

Tuition and Fees: $32,045

U.S. News and World Report Ranking: 60

Walk Score: 69

16 – Minneapolis, MinnesotaUniversity of Minnesota-Twin Cities

Median List Price: $253,650

Tuition and Fees: $22,210

U.S. News and World Report Ranking: 71

Walk Score: 68

17 – Provo, UtahBrigham Young University–Provo

Median List Price: $228,450

Tuition and Fees: $5,300

U.S. News and World Report Ranking: 68

Walk Score: 47

18 – Winston-Salem, North CarolinaWake Forest University

Median List Price: $169,000

Tuition and Fees: $49,308

U.S. News and World Report Ranking: 27

Walk Score: 22

19 – Ann Arbor, MichiganUniversity of Michigan-Ann Arbor

Median List Price: $359,900

Tuition and Fees: $43,476

U.S. News and World Report Ranking: 27

Walk Score: 50

20 – Chicago, IllinoisUniversity of Chicago

Median List Price: $325,000

Tuition and Fees: $52,491

U.S. News and World Report Ranking: 3

Walk Score: 78

Methodology:

Only schools on the U.S. News and World Report National Universities Rankings were considered. Tuition and fee cost for schools were pulled from the U.S. News and World Report National Universities Rankings. Median list prices and Walk Score for each city were from Redfin.com. Tuition and fees, U.S. News and World Report ranking and median list prices were all weighted equally (.3) with Walk Score weighted less than the other categories (.1). Only locations with median list prices under $550,000 were considered.

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