Clients have many factors to consider before buying a rental property, and the expected return on investment is probably an important one for most. This list calculates the return on investment on rental properties in cities around the U.S. The Rented.com list compares the costs of home ownership in a particular city to the short-term rental potential there. The authors of the report remind investors that homes can perform well even in cities that rank at the bottom of the list, and the opposite can occur as well. They also point out that the worst places to buy a second home typically are in states with housing shortages and/or high costs of living.
Source: Rented.com's third annual report on the third annual short-term rental income report.