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Report: Austin Rental Market Good For Investors

Photo by Nathan Bernier for KUT News
Austin makes a list of best cities in which to invest in rental property.

The company behind those “We Buy Ugly Houses” billboards just released a study on the best cities to invest in rental properties, and Austin made 24th on the list.

HomeVestors of America produced the ranking with the help of Local Market Monitor, a real estate analysis firm. It found that Austin had a “risk-return premium” that was 1.3 percent better than the national average of 5.3 percent.

In other words, investors should demand a return of 6.6 percent, on average, if they are investing in a rental property in Austin.  That would be in addition to any rental income left over after costs like mortgage payments and repairs.

A report issued in April by real estate analyst Marcus and Millichap predicted that rents will rise by an average of 4.2 percent in Austin this year.

Nathan Bernier is the transportation reporter at KUT. Got a tip? Email him at Follow him on Twitter @KUTnathan.