As families prepare for the upcoming school year, many are wondering whether paying a landlord’s mortgage for their child’s off‑campus housing is the best use of money. The answer may lie in buying a rental property near a university now, so that by the time your student returns, you are collecting rent instead of paying it.

Why Start Early?

College‑town rentals tend to follow the academic calendar more closely than other markets. Purchasing, renovating and leasing a unit can take many months, so investors who begin the process a year or more ahead position themselves to capture demand when students return.

Key Factors for Choosing a Town

Data from RentRedi and ResiClub was filtered for towns that combine a large university with graduate and professional programs, a safe and walkable environment, and a robust local economy of restaurants, culture and sports. Each market listed has trade‑offs, but strong schools and livable towns can offset slower rent quarters or construction booms.

Top College‑Town Markets

• Columbus, OH (Ohio State) – Large flagship with law, medicine and business schools; 0.7% rent growth and 10.2% vacancy as construction eases.
• Madison, WI – Flagship on an isthmus between two lakes; rent growth slowed to 1.4% with vacancy at 6.2%.
• Ann Arbor, MI (University of Michigan) – Elite public research university; modest rent growth but strong overall appeal.
• Champaign‑Urbana, IL (University of Illinois) – 5% rent growth; inventory up 51% YoY, the largest supply increase in the analysis.
• State College, PA (Penn State) – Tight inventory down 17% YoY; rent growth at 5%.
• Tuscaloosa, AL (University of Alabama) – 8% yield and 4% rent growth; inventory rose 33% YoY.
• Athens‑Clarke County, GA (University of Georgia) – Walkable downtown with a strong music scene and SEC athletics.
• Columbia, SC (University of South Carolina) – 5% vacancy, the lowest in the list; rent growth cooled to 1%.
• Knoxville, TN (University of Tennessee) – Revitalized riverfront downtown; three years of positive migration.
• Lexington, KY (University of Kentucky) – 6% yield, 3% rent growth, 6% vacancy; stable inventory.

Multi‑university metros spread enrollment risk and often feature deeper economic bases:

• Boston, MA/NH – Home to Harvard, MIT, Boston University and more; diversified demand.
• Durham‑Chapel Hill, NC – UNC‑Chapel Hill, Duke and NC Central together with the Research Triangle economy.
• San Diego, CA – UC San Diego, San Diego State and University of San Diego; low 4% yield but long‑term appreciation potential.

Smaller markets also meet the criteria of size, graduate programs and quality of life:

• Morgantown, WV (West Virginia University) – 8% yield, 5% rent growth, tight inventory.
• Charlottesville, VA (University of Virginia) – Historic, walkable downtown with strong law, business and medicine programs.
• Blacksburg, VA (Virginia Tech) – 7% yield, 4% rent growth; inventory up 25% YoY.
• Iowa City, IA (University of Iowa) – UNESCO City of Literature; 5% rent growth, inventory down 16%.
• Auburn‑Opelika, AL (Auburn University) – Strong engineering programs and vibrant downtown.
• Eugene, OR (University of Oregon) – Known as Tracktown USA; 5% yield, 3% rent growth.
• Boise City, ID (Boise State) – Three years of accelerating positive migration; 4% vacancy.

Investors should weigh each town’s specific yield, rent growth, vacancy and inventory trends against their own risk tolerance and investment horizon. By starting the purchase process now, families can turn a future rental expense into a source of income, supporting both their child’s education and long‑term financial stability.

Original reporting: KEYT (Ventura/Santa Barbara) — read the source article.