In most of the largest metropolitan areas in the U.S., the typical cost of rent exceeds the typical cost of a monthly mortgage payment – and that spells opportunity for homeowners considering renting out their properties in those locales, according to real estate website Zillow.
The company said it ran the numbers and found that typical rent payments were higher than mortgages in 33 of the nation’s 50 biggest metros, with Memphis, Tenn., having the greatest gap, followed by Miami and Atlanta. Southern cities dominated the top 10, but a few Midwestern metros hit the rankings, too.
Zillow also pointed to a recent study by the Pew Research Center, which showed that seven out of 10 rental properties in the U.S. are owned by individuals and that those individuals typically own just one or two properties.
“Single-family homes comprise about one-third of the nation’s total rental stock,” Zillow economist Alexandra Lee said in a statement. “Owners who do rent out their properties can provide both much-needed rental inventory in tight markets as well as sought-after space and amenities for families looking to move up from an apartment.”