Frostburg Maryland has a high rental rate at 48.4%. This fact has a lot to do with a State University being located within its city limits. Not only do student renters account for much of the non-owner occupied properties, but the recent trend of non-student renters as well.
Currently enrolling around 5,700+ students, Frostburg State University recently initiated a strong bid to attract more students to the University. Enrollment will increase, however the University has not prepared itself to provide space for the influx of students. This is causing an increasing amount of students looking for off campus housing. The constant stream of incoming Undergraduate, Graduate and Doctoral students ensures landlords will have their properties filled because of the increased demand from students.
Frostburg State University certainly draws its share of students looking for off campus housing each semester but it also draws faculty, staff and other employees who need a place to live. Most of these professionals along with other post-graduate adults are not looking to purchase a home in Frostburg. Why? Buying a home is expensive if you are unsure of how long you are going to stay. For some, residing in Frostburg is more of a stepping stone than a permanent foundation. These “short –term” residents prefer to rent rather than to own because they do not have time needed to build equity in a house.
A 2010 U.S. survey found that 27% of renters plan to never buy a home. Some studies are showing that owning a home is no longer a priority of the upcoming (millennial) generation of Americans. Individuals have come to enjoy renting in lieu of owning because it seems easier; there is less financial risk, less maintenance and a cheaper alternative to buying if they are not planning to stay for a long while. These ‘lifelong’ renters also help generate a steady and consistent income for those wise investors who buy Frostburg income properties.
The large population of students and transient professionals coupled with locals who are not ready or do not plan to buy a home offer a great opportunity for investors in the Frostburg area. There are 3 major areas of income properties in Frostburg that offer a breadth of options; Duplexes, Apartments and Houses.
- Duplexes – A duplex is defined as two units attached to each other either side-by-side or stacked and deeded as one parcel. Each unit has its own separate entrance in a duplex and offers an opportunity for owner occupied income properties. By living in one unit and offering the other as a rental, owners can offset or even pay their mortgage with income earned. Many homes in and around Frostburg have been converted to duplex for this very reason.
- Apartments –An apartment is defined as a self-contained housing unit that occupies only part of a building. Apartments are not as abundant in Frostburg as in other college towns, in fact there are less than 5 apartment buildings located in Frostburg that are not solely intended for student use. The opportunity to purchase an apartment building in Frostburg is rare but it does happen.
- Houses – Rented single family homes are very common in Frostburg. A house is easily bought and maintained by the owner or property manager. With the median rent of a home in Frostburg somewhere around $500 -$700 (not including utilities) property owners could use the income to pay the mortgage and taxes on the average Frostburg property price of $120,000 to $130,000. Nationally, almost one out of every six houses sold are purchased by an investor. If a private investor is looking for a great hands-on opportunity, perhaps purchasing a single-family house to rent out makes sense.
Contact the professionals at Carter & Roque Real Estate who have the best local knowledge about Frostburg income properties at 301-689-0100.