Searching for a residential income property is overwhelming, especially in a metro area notorious for its high cost of living, transient population and glut of new apartment construction. These factors amplify the need for property owners to choose their next investments wisely. And the surest way to do this is to buy property in hot, up-and-coming neighborhoods that are in high-demand among renters.
Location, location, location—yes, the aptness of this old real estate adage probably doesn’t surprise you. However, the results of a study by Onboard Informatics ranking the five hottest neighborhoods for renters and investors in D.C. might.
Take the guesswork out of your next property hunt and check out why you should invest in these renter havens.
5 of the Hottest Neighborhoods Renters (and Investors) Love
1. Navy Yard – Anchored by the Washington Navy Yard, this neighborhood on the Anacostia River in Southeast D.C. has enjoyed a vibrant resurgence marked by a new wave of mixed-used developments that both preserved and modernized its industrial-era charm. The neighborhood is home to the Washington Nationals Ballpark, Anacostia Riverwalk, and several popular bars, restaurants, cafes, and theaters.
There are government agencies located nearby, while Capitol Hill and Eastern Market are just short walking distances away. This neighborhood attracts military members, government employees, and young twenty-somethings. Residents depend on cars or public transportation and their average commute is 28 minutes.
Investor Stats: 85% renters. Average home price (last six months): $478,000. Avg. monthly rent: $909. Vacant homes: 9 %. Annual resident turnover: 11%.
2. Mayfair – Mayfair was once the childhood home to iconic singer and songwriter Marvin Gaye. Now, its affordable townhouses and multi-family homes are capturing the attention of renters and investors looking for an area on the rebound. Mayfair’s residents include families, students, single professionals, and retirees. This neighborhood is metro accessible and located along several bus routes. The average commute is 31 minutes.
Investor stats: 83% renter-occupied. Average home selling price: $449,666. Average monthly rent: $919. Vacant homes: 7%. Annual resident turnover: 13%.
3. Judiciary Square – Filled with federal courthouses and municipal buildings, this neighborhood thrums with suited-up government employees, politicos, and lawyers. Residents can enjoy the proximity of the National Mall, Smithsonian Museums, Verizon Center, and high-end restaurants and shops. Judiciary Square is metro accessible, and the average commute is 25 minutes.
Investor stats: 82% renter-occupied. Average home selling price: $272,000, Vacant homes: 14%, Average monthly rent: $1,008. Vacant homes: 14%. Annual resident turnover: 24%.
4. Barry Farm – This historic area played in important role in the post-Civil War era, serving as a settlement for freed slaves and the home of abolitionist Frederick Douglas’ sons. Now, it’s one of D.C.’s few remaining affordable housing hold outs—making it prime location for investors and renters who are looking to get into a neighborhood that’s experiencing revitalization effort still in its infancy. Redevelopment projects include the construction of row houses, multi-family homes, 18,000 housing units, 60-thousand sq. feet of retail space, an open air market and a park for concerts and community events. The average commute is 30 minutes.
Investor stats: 81% renter occupied. Average home selling price: $136,966. Average monthly rent: $879. Vacant homes: 10%. Annual resident turnover: 17%.
5. Mount Vernon Square – Just north of downtown D.C. and the National Mall, this thriving urban center is home to the “Traingle,” an enclave of multi-use developments, rooftop lounges, bars, summer festivals, parks, and unique restaurants and shops. It’s a live-work-play destination that draws professionals, singles, the LGBT community, and students. Mount Vernon Square is conveniently located near two metro stops and is bicycle friendly. The average commute is 25 minutes.
Investor stats: 79% renter occupied. Average home selling price: $438,283. Average monthly rent: $1,136. Vacant homes: 12%. Annual resident turnover: 15%.
Investors: have you found a property or neighborhood that piques your interest? A property manager can advise you on cost-saving systems and the amenities tenants can’t live without.
– By Stacy Sare Cohen