Scoring Methodology
Every scoreable ZIP code receives a composite score out of 100 points across five weighted dimensions. Below is the exact logic used to compute each sub-score.
Weight Distribution
Data Sources
Gross Rent Yield
35 / 100 ptsMeasures annual rental income as a percentage of property cost — the primary cash-flow indicator for investors.
Gross Yield = (Monthly Rent × 12) / Median Home Value × 100A gross yield above 8–10% typically supports positive cash-flow after expenses. The 15% ceiling avoids rewarding extreme values that may indicate data issues.
| Range | Points | Note |
|---|---|---|
| ≥ 15% | 35 / 35 | Exceptional — full marks |
| 2% – 15% | Linear | (yield − 2) / 13 × 35 |
| ≤ 2% | 0 / 35 | Too low to be viable |
Affordability
20 / 100 ptsFavors the investor sweet-spot ($50K–$200K) where entry cost is manageable, tenant demand is strong, and financing is straightforward.
Score based on Median Home Value price bandProperties under $30K often have deferred maintenance and vacancy risk. Above $400K, cap rates compress and cash-on-cash returns suffer.
| Range | Points | Note |
|---|---|---|
| $50K – $200K | 20 / 20 | Investor sweet spot — full marks |
| $200K – $300K | 14 / 20 | 70% — still attractive |
| $300K – $400K | 8 / 20 | 40% — higher barrier to entry |
| > $400K | 3 / 20 | 15% — typically not ideal for cash flow |
| $30K – $50K | 10 / 20 | 50% — cheap but limited appreciation |
| < $30K | 2 / 20 | 10% — likely distressed market |
Safety
20 / 100 ptsLower violent crime means safer neighborhoods, better tenants, and lower vacancy — all critical for long-term rental income.
Violent Crime Rate = Violent Crimes / County Population × 100,000FBI NIBRS data is county-level; we use violent crimes (murder, assault, robbery, rape) as the safety signal. A rate under 100/100K is well below the national average (~380).
| Range | Points | Note |
|---|---|---|
| ≤ 100 per 100K | 20 / 20 | Very safe — full marks |
| 100 – 800 | Linear decline | (1 − (rate−100)/700) × 20 |
| ≥ 800 per 100K | 0 / 20 | High crime — zero points |
| No data | 10 / 20 | 50% neutral — no penalty or reward |
Tax Efficiency
15 / 100 ptsProperty tax is one of the largest operating expenses for rental investors. Lower rates directly improve net operating income.
Effective Tax Rate = Median Annual Property Tax / Median Home ValueStates like Alabama, Louisiana, and West Virginia have notably low property taxes. The 3% cap covers most of the U.S. range; only pockets of NJ, IL, and TX go higher.
| Range | Points | Note |
|---|---|---|
| ≤ 0.5% | 15 / 15 | Excellent — full marks |
| 0.5% – 3.0% | Linear decline | (1 − (rate−0.5)/2.5) × 15 |
| ≥ 3.0% | 0 / 15 | Very high tax burden |
| No data | 7.5 / 15 | 50% neutral |
Market Liquidity
10 / 100 ptsLarger markets have more tenants, shorter vacancy periods, and easier resale — all improving investment liquidity.
County Population (latest ACS 5-year estimate)County population proxies market depth. Even a great yield in a county of 5K people means limited tenant pool and potential liquidity traps.
| Range | Points | Note |
|---|---|---|
| ≥ 100K population | 10 / 10 | Full marks — strong demand |
| 50K – 100K | 8 / 10 | 80% |
| 20K – 50K | 6 / 10 | 60% |
| 10K – 20K | 4 / 10 | 40% |
| < 10K | 2 / 10 | 20% — very rural |
| No data | 3 / 10 | 30% neutral |
Final Score Computation
Total Score = Yield Score + Affordability Score + Safety Score + Tax Score + Liquidity Score
// Max = 35 + 20 + 20 + 15 + 10 = 100 points- ZIP must have a valid Census median home value > 0
- ZIP must have rental data (FMR 2BR > 0 or Census median rent > 0)
- All other metrics are optional; missing data receives a 50% neutral score
- Filters (state, price, yield, score) are applied after scoring
- Sorting is supported by score, yield, price, rent, or crime rate
- Default sort: score descending (best first)
Geographic Coverage
14 U.S. states selected for investor-friendly rental markets, lower price points, and favorable landlord regulations.