Atlanta Rental Statistics: Should You Invest in a 3 Bedroom or a 4 Bedroom Home?

Mike Nelson
Mike Nelson
This information was pulled from FMLS (First Multiple Listing Service, a local MLS) using data from throughout 2013 in the following counties that Excalibur Home Management is proud to serve: Barrow, Cherokee, Cobb, DeKalb, Douglas, Forsyth, Fulton, Gwinnett, Hall, Henry, and Walton County.
3 Bedroom Rent Statistics:
Min: $700
Max: $2000
Standard Deviation: $268
Average Rent: $1222
Average DOM: 47
4 Bedroom Rent Statistics:
Min: $800
Max: $2000
Standard Deviation: $254
Average Rent: $1412
Average DOM: 47
As you can see, the average days on market was not affected by whether the home is a 3 or a 4 bedroom.
But, unsurprisingly, the rental rate is quite a different story.
According to the empirical rule:
68% of 3 bedroom homes (in these counties) should rent between $954 and $1490.
68% of 4 bedroom homes should rent between $1158 and $1666.
95% of 3 bedroom homes should rent between $686 and $1758.
95% of 4 bedroom homes should rent between $904 and $1920.
4 bedroom homes not only have a much higher average rent versus 3 bedroom homes, but they also have a lower variance in rental rates; meaning, in general, you should feel confident knowing that (all else being equal) homes with 4 bedrooms will produce more rental income, which will increase your NOI while subsequently increasing your return on investment.

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