Tampa, Florida is among one of the fastest-growing cities in the nation. People looking to flee overpopulated, overpriced cities like Los Angeles and New York City have found that Tampa offers a world of opportunities. Tampa residents have a far better quality of life than other major cities in the United States.
As the population of Tampa continues to grow, so does the city’s infrastructure, as well as the city’s surrounding areas. Currently, investing in a rental property in Tampa is an intelligent decision. With the number of people moving to Tampa skyrocketing, rental properties are in high demand. Not only are these properties in high demand, but tenants are willing to pay a reasonable price in exchange for this better quality of life. So, if you want to Buy a Rental Property that will produce excellent returns and cash flow, Tampa is the place.
As a Tampa Property Management Company, we deal with rentals all day, every day. So, if you’re looking for the best advice about investing in a rental property in the area, you’re in the right place. We know the ins and outs of Tampa, Florida and the benefits of buying a property in one of the nation’s fastest-growing cities.
Is Tampa The Best Place for Buying a Rental Property?
Tampa, Florida is one of the best places to buy a rental property. The underlying reasons Tampa, Florida, continues to be one of the best rental markets in the nation are as follows:
- 50.7% of Tampa residents live in rental properties.
- According to Zillow, the average rent in Tampa is $2,300/month, which is 10% higher than the national average.
- Tampa is growing at a rate of 2% annually.
- Tampa’s population density is 3,506 people per square mile.
- 56.24% of residents were not born in Tampa, meaning they moved here from a different location.
- By 2028, Tampa’s population is expected to grow from 399,734 (current) to 424,359.
With over half of the Tampa population living in rental properties and a growth rate of 2% annually, rentals will continue to be in high demand. In addition, the continued growth of Tampa Bay’s population and infrastructure will significantly increase property values.
Investing in both Single-family and Multifamily rental properties will continue to be a solid investment for years to come. Now that we’ve covered why Tampa is such a great market to invest in let’s look at the Top 5 Areas that will contribute to high appreciation and areas that will produce cash flow in Tampa.
Top Five Tampa, Florida Areas for Purchasing Rental Properties – Appreciation.
1. South Tampa
- South Tampa, Florida, features some of Tampa’s most highly sought-out areas including Hyde Park, Harbour Island, Davis Islands, Bayshore Gardens, Palma Ceia and several other neighborhoods.
- Single-family rental property investments are more expensive than surrounding Tampa Bay areas. In turn, rental homes lease for much more per month.
- South Tampa features a wide variety of housing options such as single-family homes, condo’s, apartments and waterfront properties.
According to realtor.com:
- The median listing price in South Tampa is $653.5K, $345 / sq foot.
- The median sold price is $580K.
- The average sale-to-list price ratio is 98.94%.
According to apartmenthomeliving.com:
- The average apartment rent in South Tampa is $2,536.
- The average home rent in South Tampa is $3,452.
These areas boast some of Tampa’s most beautiful homes, historic sites, shops, and restaurants. Homes in this area tend to be more expensive than homes in other areas due to all it offers. Located near the water and the city, South Tampa is highly desirable. Home investments in the area are more expensive than in other surrounding areas, so the rental homes lease for much more per month.
South Tampa Attractions
- Bayshore Boulevard
- Hyde Park Village
- Henry B. Plant Museum
- SOHO (South of Howard) Bars and Restaurants
- Ballast Point Park
- Davis Islands Beach
2. Seminole Heights
According to realtor.com:
- The median listing price in Seminole Heights is 445.8K, $304 / sq foot.
- Rentals on the market are currently starting at $1.2K / per month
According to apartmenthomeliving.com:
- The average apartment rent in Seminole Heights is $1,866.
- The average home rent in Seminole Heights is $1,911.
Seminole Heights has grown significantly. It is a perfect area for young professionals who want to be close to the city but are also interested in the authentic suburban neighborhood feel. According to Tampa Magazines, “Housing prices, which spiked during the pandemic, are also creating opportunities for homeowners to profit.” Seminole Heights has been renewed and re-developed recently and will continue growing, making a rental property investment highly valuable.
Seminole Heights Attractions:
- Seminole Heights Market
- Ella’s Americana Folk Art Cafe
- Mandarin Heights | Seminole Heights Cocktail Bar
- LÜFKA (Tampa’s First Zero Waste Store)
- ZooTampa at Lowry Park
3. Channel District
The Channel District is one of Tampa’s most lively and populated neighborhoods outside Downtown Tampa. Once an industrial area, it has been re-developed in recent years and has become a flourishing urban area with a proximity to the water and Downtown Tampa. The Channel District has much to offer; fine dining, cafes, entertainment venues, and cultural attractions. With its recent development, the streets of the Channel District are lined with high-rise residential buildings, drawing in a large crowd of renters.
According to realtor.com:
- The median listing price in the Channel District is $459.5K, $519 / sq foot.
- The median sold home price is $565K.
- The sale-to-list price ratio is 96.71%
According to apartmenthomeliving.com:
- The average apartment rent in the Channel District is $3,388.
- The average home rent in the Channel District is $2,880.
The Channel District is always full of life, with the Amalie Arena, Florida Aquarium, Tampa Bay History Center, and the Port of Tampa. Along with residential buildings, there are many corporate offices and opportunities for work at local restaurants, bars, and attractions. This neighborhood is very walkable, making it a desirable place for professionals working there. The Channel District is a highly sought-out area, filled with people and things to do, where a rental property would flourish.
Channel District Attractions:
- Water Street Tampa
- Amalie Arena
- The Florida Aquarium
- Tampa Art Museum
- Sparkman Wharf
- American Victory Ship and Museum
4. Ybor City
Ybor City is a unique historic neighborhood located in Tampa. When founded in the 1800s, it was home to the cigar-making industry but is now a significant attraction for Tampa locals and tourists. Ybor City is known for its vibrant 7th Avenue, famous restaurants, nightclubs, and shops.
According to realtor.com:
- The median listing price in Ybor City is $317.5K, $255 / sq foot.
- The median sold price is $300K.
- The average sale-to-list price ratio is 96.15%.
According to apartmenthomeliving.com:
- The average apartment rent in Ybor City is $2,904.
- The average home rent in Ybor City is $2,318.
Ybor City is full of diverse cultures, unlike any other area in Tampa. Popular attractions like Columbia Restaurant and concert venues attract many visitors. Residents of Ybor include families, young professionals, and college students. Since it is such a popular destination in Tampa, a rental property would prosper in Ybor City.
Ybor City Attractions
5. New Tampa
New Tampa is a suburban area located northeast of downtown Tampa. It is a rapidly growing area that includes many newer residential developments, shopping centers, recreation areas, and commercial spaces. New Tampa is further away from downtown than other areas, making it desirable for someone who wants to still be in Tampa but in a calmer residential area. Cory Lake Isles is a residential community in New Tampa developed on a Lake featuring beautiful homes, parks, and pools.
According to realtor.com:
- The median listing price in New Tampa is $452.5K, $207 / sq foot.
- The median sold price is $480K.
- The average sale-to-list price ratio is 97.94%.
According to apartmenthomeliving.com:
- The average apartment rent in New Tampa is $1,569.
- The average home rent in New Tampa is $2,904.
New Tampa is also home to the University of South Florida and the University of South Florida Research Park, making it a popular location for students and professionals which draws in a large crowd of potential renters.
New Tampa Attractions:
- The Shops at Wiregrass
- AdventHealth Center Ice Rink
- Lettuce Lake Conservation Park
- Hunter’s Green Country Club
- Flatwoods Conservation Park
Tampa Property Manager Summary
Tampa is recognized as one of the best places to buy a rental property. The Tampa real estate rental market is ever-changing, and new areas are popping up all over the city. As a real estate investor, being ahead of the curve is a must, and following our guide will produce positive outcomes. First-time rental property purchasers and seasoned real estate investors (no matter your strategy) can seek significant rental property assets here in Tampa, Florida.
With the help of The Listing Real Estate Management, your Tampa property will thrive no matter which part of Tampa you choose. At The Listing Real Estate Management, your story is our story. Your happiness and the success of your property are our number one priority.
Contact us at The Listing Real Estate Management, your trusted Tampa property management company, to take the next step in maximizing your profits and turning your property into a unique and life-changing investment!
