Much like a buyers' market in the residential sector, the best renters' markets occur where supply is abundant, price growth is flat, and renters can get the best value for their dollar.
Forbes magazine calculated the best renters' markets by starting with rental pricing data from real estate investment firm Marcus & Millichap. From there it calculated capitalization rates – the percent of a property's value acquired in yearly rent. The higher the cap rate, the more lucrative it is for investors. The lower the cap rate, the less a renter has to pay to rent a more valuable property.
Next, using data from the Bureau of Labor Statistics, it calculated how much of a resident's salary goes into rent. Finally, cities were ranked on the relative tightening or loosening of vacancies in the rental sector based on data from the NATIONAL ASSOCIATION OF REALTORS®.
Here are the cities that Forbes concluded are the top 10 renters’ markets:
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