The heat is rising in the Dayton real estate market. Here's why. It's a small, affordable market that's seeing tremendous growth in home price appreciation and rent increases that's starting to attract out-of-state real estate investors who see the potential for strong cash flow.

Dayton, Ohio's affordability, appreciation, and rent increases create a great investment opportunity.

Dayton's Attractive Housing Market

Real estate investors can find nearly every property type in Dayton's property listings. Whether you're looking for single-family homes or multi-family properties, there's a Dayton investment property.

The Dayton area is home to many great neighborhoods and suburbs for real estate investors to consider. They include Beavercreek, Centerville, Kettering, Springboro, and Springfield.

• Beavercreek: Beavercreek is located 9 miles east of Dayton along US-35. It's Dayton's second-largest suburb known for its rolling hills and natural beauty. The median listing price in Beavercreek is $137/sqft, and the median sales price is $289,000. The median rent is $1,040/month.
• Centerville: Centerville is 16 miles south of Dayton along I-675. It's a family-friendly suburb home to the oldest collection of early stone houses in Ohio. The median listing price in Centerville is $135/sqft, and the median sales price is $267,450. The median rent is $1,160/month.
• Kettering – Kettering is located 5 miles south of Downtown Dayton along Fair Hills Avenue. It's a family-friendly suburb just a short drive from the city's heart. The median listing price in Kettering is $141/sqft, and the median sales price is $185,000. The median rent is $950/month.
• Springboro: Springboro is located 16 miles south of Dayton along I-75. It's a small city with tree-lined streets that was once a stop along the Underground Railroad. The median listing price in Springboro is $154/sqft, and the median sales price is $345,000. The median rent is $1,350/month.
• Springfield: Springfield is located 27 miles northeast of Dayton along I-70 on the way to Columbus. It's a small town with quaint shops and delicious local restaurants. The median listing price in Springfield is $120/sqft, and the median sales price is $169,900. The median rent is $900/month.

Other areas worth noting are Fairborn, home to Wright-Patterson Air Force Base; Twin Towers, a neighborhood in southeast Dayton that's known for its affordability; and Westwood, a neighborhood in west Dayton with lots of great coffee shops and parks.

Rental Home Appreciation in Dayton

Dayton's rental market is attractive for renters and real estate investors. For renters, it's a very affordable market. For investors, there's a lot of opportunity to increase cash flow through steady rental income.

According to Realtor.com, the median listing price in Dayton, Ohio is $99 per square foot with a median sale price of $129,900. Zillow's Home Value Index reports a 22.7% change since last year. The median rent in Dayton is $901 per month.

The city's affordable rents contribute to its robust rental market. Half of the households in Dayton are occupied by renters, and the city has a vacancy rate of around 5%. What's more, rents in Dayton are increasing at a rate of about 7% year-over-year.

Dayton's strong rental market, affordability, and high home price appreciation create many opportunities for real estate investors and property management companies.

Economic Growth in Dayton

Dayton is located between Cincinnati and Columbus at the junction between I-70 and I-75. It's the birthplace of Orville Wright and the seat of Montgomery County, Ohio. Dayton is also home to the University of Dayton and the National Museum of the U.S. Air Force.

Dayton's primary industries are aerospace research and development, healthcare, information technology, and advanced materials manufacturing. The largest employers are Wright-Patterson Air Force Base, Kettering Health Network, Premier Health, and Montgomery County. The Dayton area is also the headquarters of Behr Dayton Thermal Products and Huffy. These employers provide steady, stable jobs that fuel the city's economy. In fact, the unemployment rate is just 4.4%.

The Dayton real estate market offers real estate investors affordability, demand, great appreciation, and a steady economy. A Dayton rental property should be on every investor's list.