See which Atlanta market will provide the highest ROI for investors

by Rincey Abraham

suburban-community-housing-market-2016

Real estate investors are always on the lookout for which neighborhoods will provide them with the highest return on their investment.

HomeUnion indicated ZIP codes in 20 major metros that maximize real estate returns while minimizing risk over the next five years. In the Atlanta area, the website identified the 30078 ZIP code in Snellville as the best option.

“As more Americans seek to diversify their investment portfolios into real estate, we have put together a list of the best zip codes in 20 markets for them to invest and hold over a five-year period or longer,” explains Steve Hovland, director of research for HomeUnion.

The online real estate investment management firm looked at the attractiveness of a neighborhood for investing in single-family rentals over five years as well as school quality. It also required that the market must have schools ranked in the 70th percentile.

Snellville made the list for its 5.8 annualized total return (which includes a projected appreciation and cash flow) and 72.5 school rating.

“Typically, single-family rentals in areas with good schools have been attractive to long-term investors, though those areas have been more challenging to locate for remote investors in today’s heated housing market,” Hovland said.

Zip Code Submarket Metro Area Annualized Total Return School Rating
33434 Hamptons at Boca Raton West Palm Beach 8.1 87.9
19035 Gladwyne Philadelphia 6.9 86.9
48322 West Bloomfield Township Detroit 6.9 74.4
33158 Palmetto Bay Miami 6.8 83.9
33327 Weston Fort Laderdale 6.6 70.5
37062 Fairview Nashville 6.5 70.6
66223 Overland Park Kansas City 6.2 97.4
60016 Des Plaines Chicago 6.0 76.4
45255 Forestville/Cherry Grove Cincinnati 5.9 75.7
30078 Snellville Atlanta 5.8 72.5
97224 King City Portland, Ore. 5.8 81.9
34677 Oldsmar Tampa 5.7 78.6
44023 Chagrin Falls Cleveland 5.6 70.8
75022 Flower Mound Dallas 5.6 84
77059 Clear Lake City Houston 5.6 76
85259 North Scottsdale Phoenix 5.5 88
63043 Maryland Heights St. Louis 5.5 71.9
73003 Edmond Oklahoma City 5.4 90
91602 North Hollywood Los Angeles 5.4 71.4
46280 North Indianapolis Indianapolis 5.4 71.9