Most of us now know, if we didn’t pre-pandemic, that landlords rely on their tenants’ rent to pay their building mortgages and necessary expenses. A recent study indicates how widely those rent payments cover landlords’ costs city to city.
New Study – How Much of Landlord’s Mortgage Covered with Tenant’s Rent
The insurance agency Surety First recently researched how much of a landlord’s mortgage tenants pay via their average rent payments.
Surety used average rent and average median home value from Zillow data in the 50 most populous cities in the country between September 2016 and September 2021. With calculations based on a mortgage term of 30 years with a 4% interest rate and 6% down payment of Zillow’s median home values, Surety came up with each city’s average rent as a percent of its average mortgage payment.
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
Here’s what Surety First found out:
Cities Where Renters Pay Highest % of Their Landlord’s Mortgages
(Based on Median Rent Price vs. Monthly Mortgage Payment)
Rank City % of Mortgage Paid
1. Memphis TN 293.03%
2, Cleveland OH 264.51%
3. Pittsburgh PA 260.92%
4, Oklahoma City OK 247.87%
- Chicago IL 245.33%
- Tampa FL 242.41%
- Birmingham AL 241.89%
- Detroit MI 241.87%
- Miami FL 238.01%
- Columbus OH 234.88%
- Indianapolis IN 232.98%
- Cincinnati OH 230.43%
- Atlanta GA 226.73%
- Houston TX 226.70%
- Buffalo NY 221.24%
- Philadelphia PA 220.98%
- Charlotte NC 218.60%
- St. Louis MO 217.14%
- Louisville KY 215.98%
- Orlando FL 215.79%
Jeremy Schaedler, founder of Surety First and author of the survey report, said, “Landlords in these cities might want to consider doing some renovations since they are likely not having any trouble finding tenants in this wild real estate market and are turning the largest profit in the country.”
Cities Where Renters Pay Lowest % of Their Landlord’s Mortgage
(Based on Median Rent Price vs. Median Monthly Mortgage Payment.)
- San Jose CA 88.36%
- San Francisco CA 99.07%
- Los Angeles CA 121.88%
- Salt Lake City UT 127.07%
- Portland OR 130.15%
- San Diego CA 131.21%
- Seattle WA 133.28%
- Denver CO 135.77%
- Austin TX 150. 23%
- Sacramento CA 152.18%
- Washington DC 166.73%
- Providence RI 169.33%
- Las Vegas NV 173.99%
- Phoenix AZ 176.33%
- Riverside CA 179.52%
- Boston MA 179.88%
- Raleigh NC 180.20%
- Richmond VA 188.22%
- Virginia Beach VA 191.31%
- Baltimore MD 191.51%
Schaedler said, “Out of the 50 states we analyzed, it’s cheaper to rent than to pay a mortgage in just two of them. San Franciscan renters pay 99.07 % of what they would spend on a mortgage payment and the rent-to-mortgage ration in San Jose CA is 88.36%.”
Are you ready to learn what your DISC personality style is? You know it’s critical that you understand what your natural personality style is. Once you have obtained this knowledge everything in your business and personal life will change for the better. Tim and Julie Harris are making it super simple for you to have this powerful info. Now, text the word YOU to 47372, and when you do you will instantly receive a special exclusive text link. Next, you will complete your own DISC personality test.. the results will be shared with you instantly once you complete the simple and fun test, no strings attached. Simply text the word YOU to 47372 and click the link.
P.S. (Limited time: no charge to take the complete test)
* 4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
Thanks to Surety First and Inman.
