Introduction

Investing in rental properties can be a lucrative endeavor if approached with careful consideration and strategic planning. A good rental property is typically characterized by its location, affordability, and potential for return on investment. Location is a critical factor as it influences demand, rental income, property value, and the overall appeal to potential tenants. Missouri, known for its diverse cities and vibrant communities, offers a wealth of opportunities for real estate investors. This guide will explore some of the best neighborhoods across the state, grading each area on convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel, and the unique 'x-factor' that makes each area desirable.

Best Neighborhoods for Rental Properties in Missouri

1. Central West End, St. Louis

Grades:

• Convenience: A
• Tourist Attractions: B
• Things to Do: A
• Average Home Prices: C
• Return on Investment: B
• Proximity to Work-Related Travel: A
• X-Factor: A

Details:

• Convenience: The Central West End (CWE) boasts a high walkability score with numerous amenities such as grocery stores, restaurants, and shops within close proximity. Public transportation options are robust, providing easy access to other parts of St. Louis.
• Tourist Attractions: While not the primary tourist hub, the CWE is near Forest Park, home to the St. Louis Zoo, Art Museum, and Science Center, attracting a significant number of visitors.
• Things to Do: This neighborhood is known for its vibrant nightlife, diverse dining options, and cultural venues like the Cathedral Basilica of Saint Louis and the World Chess Hall of Fame.
• Average Home Prices: The CWE has higher-than-average home prices compared to other parts of St. Louis, reflecting its desirability and central location.
• Return on Investment: The area offers solid rental yields due to high demand from young professionals and students attending nearby universities.
• Proximity to Work-Related Travel: The CWE is close to major hospitals like Barnes-Jewish Hospital and the Washington University Medical Center, as well as the St. Louis Convention Center.
• X-Factor: The CWE's unique charm lies in its blend of historic architecture, upscale living, and vibrant community events, making it a highly desirable location.

2. The Plaza, Kansas City

Grades:

• Convenience: A
• Tourist Attractions: A
• Things to Do: A
• Average Home Prices: C
• Return on Investment: B
• Proximity to Work-Related Travel: B
• X-Factor: A

Details:

• Convenience: The Plaza is a premier shopping and entertainment district with numerous amenities within walking distance, including high-end retail stores and dining establishments.
• Tourist Attractions: Known for its Spanish-inspired architecture, The Plaza is a major tourist attraction itself. It is also near the Nelson-Atkins Museum of Art and the Kemper Museum of Contemporary Art.
• Things to Do: Residents and visitors enjoy year-round events, live music, and a vibrant nightlife. The Plaza Art Fair is a notable annual event.
• Average Home Prices: Home prices are higher in The Plaza area due to its upscale nature and central location.
• Return on Investment: Rental properties in The Plaza offer attractive returns due to consistent demand from affluent tenants and tourists.
• Proximity to Work-Related Travel: The Plaza is not far from downtown Kansas City and major employment centers, but not as close as some other areas.
• X-Factor: The Plaza’s unique allure comes from its beautiful European-inspired design, upscale amenities, and vibrant cultural scene.

3. Downtown Springfield

Grades:

• Convenience: B
• Tourist Attractions: B
• Things to Do: B
• Average Home Prices: A
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: B

Details:

• Convenience: Downtown Springfield offers a mix of urban amenities and a small-town feel, with shops, restaurants, and entertainment options easily accessible.
• Tourist Attractions: Attractions include the Springfield Cardinals' Hammons Field, the Discovery Center, and the historic Route 66.
• Things to Do: The area has a growing arts scene, with numerous galleries, theaters, and live music venues. The downtown area hosts events like Cider Days and Artsfest.
• Average Home Prices: Home prices in downtown Springfield are relatively affordable, making it an attractive option for investors.
• Return on Investment: Strong rental demand from college students and young professionals contributes to a favorable ROI.
• Proximity to Work-Related Travel: Proximity to Missouri State University and CoxHealth Medical Center makes it convenient for work-related travel.
• X-Factor: Downtown Springfield's unique blend of historic charm and modern amenities creates a vibrant, appealing community for residents and investors alike.

4. Westport, Kansas City

Grades:

• Convenience: B
• Tourist Attractions: B
• Things to Do: A
• Average Home Prices: B
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: B

Details:

• Convenience: Westport offers a mix of residential and commercial areas with a variety of shops, bars, and restaurants within walking distance.
• Tourist Attractions: While not a primary tourist destination, Westport is known for its historic significance and lively atmosphere.
• Things to Do: The area is famous for its nightlife, with numerous bars, music venues, and restaurants attracting a young, energetic crowd.
• Average Home Prices: Home prices are moderate, making it accessible for many investors.
• Return on Investment: High rental demand from students and young professionals provides excellent ROI potential.
• Proximity to Work-Related Travel: Westport is centrally located, providing easy access to downtown Kansas City and major employment centers.
• X-Factor: The historic and vibrant nightlife scene, combined with an eclectic mix of residents, makes Westport a unique and desirable area.

5. Columbia

Grades:

• Convenience: B
• Tourist Attractions: C
• Things to Do: B
• Average Home Prices: A
• Return on Investment: A
• Proximity to Work-Related Travel: B
• X-Factor: B

Details:

• Convenience: Columbia offers a range of amenities and services, with a small-town feel and the conveniences of a larger city.
• Tourist Attractions: While not a major tourist destination, Columbia is home to the University of Missouri and related attractions.
• Things to Do: The city has a vibrant arts and culture scene, numerous parks, and outdoor activities.
• Average Home Prices: Home prices in Columbia are relatively low, making it an attractive option for real estate investors.
• Return on Investment: High demand from university students and staff ensures strong rental yields.
• Proximity to Work-Related Travel: Columbia’s central location in Missouri makes it relatively accessible to other major cities and work-related travel hubs.
• X-Factor: The strong presence of the University of Missouri gives Columbia a youthful, energetic vibe, enhancing its appeal.

Conclusion

Missouri offers a diverse range of neighborhoods with significant investment potential for rental properties. By carefully considering factors such as convenience, tourist attractions, things to do, average home prices, return on investment, proximity to work-related travel, and the unique 'x-factor' of each area, investors can make informed decisions to maximize their returns. Whether you're looking for the vibrant city life of St. Louis and Kansas City or the more relaxed, academic atmosphere of Columbia, Missouri has something to offer every real estate investor.