Introduction

Investing in rental properties can be a lucrative endeavor, offering a steady stream of income and potential for long-term appreciation. A good rental property is one that attracts reliable tenants, maintains a high occupancy rate, and provides a solid return on investment. Location plays a crucial role in determining the success of a rental property. The right location can offer convenience, desirable amenities, and proximity to key attractions and employment centers, making it an attractive option for potential tenants.

Oakland County, MI, is a prime area for rental property investment. Known for its diverse communities, robust economy, and attractive amenities, Oakland County offers a variety of neighborhoods that cater to different tenant demographics. This guide will provide an overview of some of the best neighborhoods in Oakland County, 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 sets each area apart.

Best Neighborhoods and Areas in Oakland County, MI

1. Royal Oak

Grades:

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

Convenience: Royal Oak is well-known for its walkability and access to public transportation. The downtown area is packed with shops, restaurants, and entertainment options, making it a very convenient place to live.

Tourist Attractions: Royal Oak is home to the Detroit Zoo, a major tourist attraction. The area also hosts numerous festivals and events throughout the year, attracting visitors from all over.

Things to Do: There is no shortage of activities in Royal Oak. From vibrant nightlife and dining options to parks and cultural venues like the Royal Oak Music Theatre, residents have plenty of entertainment choices.

Average Home Prices: Home prices in Royal Oak are relatively high compared to other areas in Oakland County, but the investment potential remains strong due to high demand.

Return on Investment: Royal Oak offers a solid return on investment thanks to its high rental demand and relatively stable property values.

Proximity to Work-Related Travel: The area is conveniently located near major highways, making it easy to commute to Detroit and other employment hubs. It’s also close to hospitals, convention centers, and sports venues.

X-Factor: Royal Oak's unique charm lies in its vibrant downtown and community feel. The blend of urban convenience and suburban comfort makes it a highly desirable place to live.

2. Birmingham

Grades:

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

Convenience: Birmingham offers excellent walkability and a variety of amenities, including high-end shops, restaurants, and professional services.

Tourist Attractions: While Birmingham may not have major tourist attractions, it boasts charming downtown streets and numerous events that attract visitors and residents alike.

Things to Do: From boutique shopping to fine dining and cultural events, Birmingham provides a plethora of activities for its residents.

Average Home Prices: Birmingham has some of the highest home prices in Oakland County, which can be a barrier for some investors, but it also ensures a high-quality tenant base.

Return on Investment: Despite higher home prices, Birmingham offers a good return on investment due to its desirability and strong rental market.

Proximity to Work-Related Travel: The area is conveniently located with access to major highways and is within a reasonable commuting distance to Detroit and other business centers.

X-Factor: Birmingham's upscale vibe and high-quality amenities make it a unique and attractive location for discerning tenants.

3. Ferndale

Grades:

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

Convenience: Ferndale is known for its accessibility and convenience, with a lively downtown area offering various shops, cafes, and entertainment options.

Tourist Attractions: While not a major tourist hub, Ferndale's unique cultural scene and community events attract visitors regularly.

Things to Do: The area is rich with cultural and recreational activities, from music venues to art galleries and parks.

Average Home Prices: Home prices in Ferndale are more affordable compared to Royal Oak and Birmingham, making it an attractive option for investors.

Return on Investment: Ferndale offers a high return on investment due to its lower entry costs and strong rental demand.

Proximity to Work-Related Travel: While slightly further from major employment hubs, Ferndale is still within a reasonable commuting distance to Detroit.

X-Factor: Ferndale's vibrant arts scene and inclusive community make it a unique and appealing place to live.

4. Troy

Grades:

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

Convenience: Troy offers excellent convenience with its extensive shopping options, including the upscale Somerset Collection mall, and various dining and professional services.

Tourist Attractions: Troy is not known for tourist attractions but offers a suburban environment with high-quality amenities.

Things to Do: The area has numerous parks, recreational facilities, and community events, providing plenty of activities for residents.

Average Home Prices: Home prices in Troy are moderate, making it an attractive option for both investors and tenants.

Return on Investment: Troy offers a solid return on investment due to its strong demand and stable property values.

Proximity to Work-Related Travel: The area is conveniently located near major highways and business centers, making it ideal for professionals.

X-Factor: Troy's combination of suburban comfort and urban amenities makes it a unique and desirable place to live.

5. Farmington Hills

Grades:

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

Convenience: Farmington Hills offers good convenience with a variety of shopping centers, restaurants, and services.

Tourist Attractions: While not a major tourist destination, Farmington Hills has a few attractions, including parks and historical sites.

Things to Do: Residents can enjoy parks, community centers, and local events, providing a range of recreational activities.

Average Home Prices: Home prices are moderate, making it an accessible investment opportunity.

Return on Investment: Farmington Hills offers a decent return on investment with a stable rental market.

Proximity to Work-Related Travel: The area is reasonably close to major highways and business centers, making it a good location for professionals.

X-Factor: Farmington Hills' balance of suburban tranquility and urban accessibility makes it a desirable location for families and professionals.

Conclusion

Oakland County, MI, offers a variety of neighborhoods with unique attributes and strong investment potential. From the vibrant and walkable streets of Royal Oak to the upscale charm of Birmingham and the cultural appeal of Ferndale, each area presents distinct opportunities for rental property investors. By carefully considering factors such as convenience, attractions, activities, home prices, return on investment, work-related travel proximity, and unique features, investors can make informed decisions that align with their investment goals and tenant preferences.