Detroit now the hottest market for landlords

Detroit is now the hottest market for landlords

The monthly mortgage payments in Detroit are far less than average monthly rents for the same properties

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(iStock)

(iStock)

Motor City is hardly one of the more desirable places to live in the United States, but data provided by RealtyTrac shows that Detroit offers U.S. real estate buyers the biggest return on their investment. Thanks to ultra-low housing prices, the monthly mortgage payments in Detroit are far less than average monthly rents for the same properties. As you can see below, you can still charge a reasonable rent in depressed areas, so the cheaper the house, the bigger the profit.

American counties with the biggest real estate returns:

Detroit-Warren-Livonia, Mich.

Median home price: $44,900

Avg. monthly rent: $1,124

30% annual return

Greenville, Miss.

Median home price: $42,000

Avg. monthly rent: $862

25% annual return

Atlanta-Sandy Springs-Marietta, Ga.

Median home price: $50,750

Avg. monthly rent: $1,187

28% annual return

Macon, Ga.

Median home price: $50,880:

Avg. monthly rent: $1,008

24% annual return

Source: RealtyTrac, based on median sales prices for Jan. 2014 and average fair market rents.

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