Introduction

Investing in rental properties can be a lucrative endeavor, but the success of such investments heavily depends on the selection of the right property in the right location. A good rental property should offer a balance of affordability, high rental demand, and potential for appreciation. It should also be situated in a location with convenient access to amenities, employment opportunities, and attractions that make it appealing to renters. St. Louis County, MO, with its diverse neighborhoods and robust economy, offers a variety of promising opportunities for rental property investors.

Best Neighborhoods and Areas in St. Louis County, MO

St. Louis County is a large and diverse area, offering various neighborhoods that cater to different preferences and investment goals. Here, we'll explore some of the best neighborhoods for rental properties, grading each area on several key factors:

• Convenience
• Tourist Attractions
• Things to Do
• Average Home Prices
• Return on Investment (ROI)
• Proximity to Work-Related Travel (hospitals, convention centers, sports venues)
• X-Factor (unique and desirable features)

1. Clayton

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

Convenience
Clayton is the hub of business and legal activity in St. Louis County. It's home to numerous corporate headquarters and the St. Louis County Government Center, making it highly convenient for professionals.

Tourist Attractions
While not a primary tourist destination, Clayton offers a variety of attractions, including Shaw Park, with its ice rink and swimming pool, and the St. Louis Art Fair, which draws visitors annually.

Things to Do
Clayton boasts an array of dining and shopping options, particularly in its downtown area. It also has a vibrant nightlife, with numerous bars and restaurants.

Average Home Prices
Clayton is one of the more expensive areas in St. Louis County, with average home prices higher than many other neighborhoods. This can impact affordability for investors but also suggests a stable, high-demand market.

Return on Investment
The ROI in Clayton is solid due to the high demand for rental properties from professionals working in the area. Rental rates are relatively high, which can offset the higher purchase prices.

Proximity to Work-Related Travel
Clayton’s central location and proximity to major highways make it easy for professionals to commute to other parts of the county and downtown St. Louis. It’s also near hospitals and educational institutions.

X-Factor
Clayton’s x-factor is its status as the business epicenter of St. Louis County. The presence of numerous law firms, corporations, and government offices provides a stable and high-income tenant base.

2. Chesterfield

Grades:

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

Convenience
Chesterfield offers excellent amenities, including shopping centers like Chesterfield Mall and several grocery stores, making daily life convenient for residents.

Tourist Attractions
Attractions in Chesterfield include the Butterfly House and Faust Park, which attract families and nature enthusiasts.

Things to Do
There’s no shortage of activities in Chesterfield, from parks and recreational facilities to restaurants and entertainment venues like the Chesterfield Amphitheater.

Average Home Prices
Home prices in Chesterfield are relatively moderate compared to Clayton, providing a good balance between affordability and quality of living.

Return on Investment
The ROI in Chesterfield is promising, with steady demand for rentals from families and professionals. The area’s high quality of life supports consistent rental income.

Proximity to Work-Related Travel
Chesterfield is well-connected via highways, making commutes to downtown St. Louis and other employment hubs relatively easy. It’s also close to major medical centers.

X-Factor
Chesterfield’s x-factor is its family-friendly environment, with top-rated schools and safe neighborhoods, making it particularly attractive for family-oriented tenants.

3. Kirkwood

Grades:

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

Convenience
Kirkwood is a well-established suburb with a charming downtown area, offering numerous shopping, dining, and service options within a compact, walkable area.

Tourist Attractions
Kirkwood attractions include the Magic House, a popular children’s museum, and the historic Kirkwood Train Station, which add to the neighborhood’s charm.

Things to Do
Residents enjoy various activities, from farmers' markets to community events in Kirkwood Park. The area’s dining scene is also diverse and vibrant.

Average Home Prices
Home prices in Kirkwood are moderate, offering good value for investors looking for a balance between cost and quality of living.

Return on Investment
Kirkwood’s ROI is strong, driven by high demand for rentals in this desirable, family-friendly neighborhood. Its stable property values and rental rates provide a reliable income stream.

Proximity to Work-Related Travel
Kirkwood’s location offers decent access to major highways, making commutes to central St. Louis and other employment areas manageable. It’s also near several educational institutions and hospitals.

X-Factor
Kirkwood’s x-factor is its small-town feel combined with urban convenience. The community spirit and historic charm make it a unique and appealing place to live.

4. University City

Grades:

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

Convenience
University City offers excellent public transportation and easy access to major roads, making it highly convenient for residents. The Delmar Loop is a bustling area with a mix of shops, restaurants, and entertainment options.

Tourist Attractions
The Delmar Loop itself is a major attraction, featuring the St. Louis Walk of Fame and numerous cultural landmarks. It’s a vibrant and eclectic area that draws both locals and tourists.

Things to Do
From the eclectic shops and restaurants on the Delmar Loop to various cultural and music venues, University City offers a wealth of activities. Washington University also adds to the cultural and intellectual vibrancy of the area.

Average Home Prices
Home prices in University City are relatively affordable, making it an attractive option for investors looking for lower entry costs.

Return on Investment
The ROI in University City is robust, driven by high demand from students, young professionals, and families. The diverse rental market supports steady income streams.

Proximity to Work-Related Travel
University City’s location near Washington University and its connection to major highways make it convenient for commuting to various employment centers, hospitals, and educational institutions.

X-Factor
University City’s x-factor is its cultural diversity and vibrant arts scene, which create a dynamic and appealing living environment. The presence of a major university also adds to its attractiveness.

5. Ballwin

Grades:

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

Convenience
Ballwin offers good suburban amenities, including shopping centers and parks. It’s a family-friendly area with good schools and community services.

Tourist Attractions
While not a major tourist destination, Ballwin has several parks and recreational facilities, including Castlewood State Park, which is popular for outdoor activities.

Things to Do
Ballwin residents enjoy a range of recreational activities, from golfing to hiking. The area also has a selection of restaurants and local events.

Average Home Prices
Home prices in Ballwin are moderate, making it an affordable option for many investors. The area offers good value for the cost.

Return on Investment
Ballwin’s ROI is solid, supported by steady demand from families and retirees looking for a quiet, suburban lifestyle. The stable market conditions ensure reliable rental income.

Proximity to Work-Related Travel
Ballwin is relatively close to major highways, providing reasonable commute times to downtown St. Louis and other employment centers. It’s also near several hospitals and educational institutions.

X-Factor
Ballwin’s x-factor is its reputation as a safe, family-oriented community with excellent schools and a high quality of life, making it particularly appealing to families.

Conclusion

St. Louis County, MO, offers a diverse range of neighborhoods, each with its own unique advantages for rental property investors. From the business-centric Clayton to the family-friendly Ballwin, there's something to suit every investment strategy. By carefully evaluating the convenience, attractions, things to do, home prices, ROI, proximity to work-related travel, and x-factors of each area, investors can make informed decisions to maximize their returns and unlock the full potential of their rental properties.