Rent prices in Charlotte are on the rise. In February 2023, the market's median rental price was nearly $1,800. That is a 2.8% increase year-over-year, making now an ideal time to invest in Charlotte rental properties.
Charlotte has the largest population of any city in North Carolina. It consistently ranks as one of the best cities to live in the US. This southern city is an affordable and beautiful place to call home.
If you are looking to buy a Charlotte rental property, you may not know where to start. We created this guide to help you find an investment property in the best location at the right price.
So where should you begin your search for the perfect piece of real estate to add to your portfolio? Keep reading this guide to find out.
Charlotte Rental Market Stats
The Charlotte market has some of the fastest-growing rental rates in the country. Overall, rents have increased by 12.1% since this time last year. Learn more about the Charlotte rental market below.
Charlotte Rental Property Rates
Over 80% of rental units in Charlotte go for over $1,500 per month. The majority (48%) go for more than $2,100 per month.
The exact amount of rent you can get for your property depends on its size. For example, the average one-bedroom space goes for $1,254 per month in Charlotte.
Charlotte Rental Property Sizes
The average Charlotte rental unit is around 950 square feet. If you want the best return on your investment, bigger spaces are better.
Rent prices for 1- and 2-bedroom homes and apartment rentals are up 7% and 9%, respectively. Meanwhile, studio rent prices dropped 2% year-over-year.
Charlotte Rental Vacancies
Rental vacancies are down in Charlotte. In December 2022, the rental vacancy rate hit 3.4%, which is 2.4% lower than the national rate. Impressively, vacancy rates declined 5.2% from December 2021.
Best Neighborhoods for Rental Property in Charlotte
Rental rates are rising in Charlotte primarily due to the increase in population over the past few years. Demand is particularly high in urban Charlotte due to significant job growth.
But to get the most out of your investment, you need to find a property in a high-rent market, a market with lower purchase prices, or a location experiencing high demand.
Neighborhoods With the Highest Average Rent Prices
One strategy to maximize your rental property returns is to buy in a high-rent area. You will pay off your investment faster, so you can pocket the majority of your profits.
Eastover is one of the best neighborhoods in Charlotte. It is home to top-rated public schools and is an ideal place to raise a family. Rental unit prices reflect this, with the average rent in Eastover at $2,418.
Uptown is in the heart of downtown Charlotte. This neighborhood offers the ultimate urban living convenience. Rental units in Uptown Charlotte are in high demand, which is why the average rental property currently goes for $2,126.
South End attracts young professionals looking for nightlife and proximity to downtown Charlotte jobs. This neighborhood also demands high prices for rental units. The average rent in South End is $2,105.
Other Charlotte neighborhoods with high average rental prices include Brookhill ($2,078 on average) and Dilworth ($1,999 on average). Cotswold, Foxcroft, Providence Park, Sherwood Forest, and Stonehaven round out the top 10.
Neighborhoods With the Lowest Average Purchase Prices
Another way to profit off your investment property in record time is to pick it up for a low price. Charlotte is home to some of the safest affordable neighborhoods in the US.
For example, Sardis Wood is safer than 69% of Charlotte neighborhoods. At the same time, the median home sells for an incredible $187,850. Meanwhile, expect to rent your Sardis Wood property for around $1,316 per month.
Ballantine West offers a lower return on investment potential but higher demand. The median home sells for just under $300,000 and rents for over $1,000 in this neighborhood.
Chantilly is a more expensive neighborhood, with homes selling for a median of $322,700 and renting for $1,426 per month. But expect to see more demand since Chantilly is in the top 10% of neighborhoods in terms of safety.
If you are in the market for a rental with a suburban feel, check out Providence Crossing. The median home sale price in the area is $399,225. Meanwhile, the average rent for Providence Crossing is $1,818, one of the highest in Charlotte.
Neighborhoods With the Highest Demand for Rentals
Vacancy rates are crucial for determining the rental price of your investment property. As such, choosing a unit in a high-demand area is a surefire way to grow your profits fast.
Foxcroft is one of the most in-demand areas in Charlotte. It attracts higher-income buyers and renters looking for a laid-back area with highly-ranked schools.
Eastover is another Charlotte neighborhood that is hot with renters. Over the last few years, the population has increased significantly. Real estate prices reflect this demand, so expect to invest a bit more in an Eastover property.
Plaza Midwood is an up-and-coming area that property investors are flocking to. In past decades, this area was a C-class market for real estate. As such, investors can still find affordable properties that will turn a profit fast.
If you don't mind renting to students, check out the areas surrounding UNC Charlotte. Affordable rentals are in constant demand. The only downside is that you will face some seasonality during school breaks.
Need Help Managing Your Charlotte Rental Properties?
Charlotte rental properties have a lot to offer investors. You can pick up an affordable property and turn it around for an impressive rental price. But you need to snatch up a property fast before the market cools off!
Are you wondering exactly what to charge for your rental property in Charlotte, Gastonia, or Concord? Bottom Line is a Charlotte property management firm offering free rental analyses for property investors like you. Input your address here to find out if you are missing out on profits.
