Composite market health index combining vacancy, rent growth, average rent, and HUD FMR ratio
Each state is scored on four equally-weighted factors, then assigned a composite letter grade:
| State | Abbr | Vacancy | Avg 2BR | YoY Growth | Grade | Notes |
|---|---|---|---|---|---|---|
| Florida | FL | 7.9% | $1,760 | 5.9% | B | High growth, balanced vacancy, strong FMR ratios |
| Texas | TX | 7.8% | $1,420 | 4.5% | B | Large market, balanced vacancy, affordable housing costs |
| North Carolina | NC | 6.5% | $1,540 | 6.1% | B | Fast-growing Sun Belt market, below-average vacancy |
| Tennessee | TN | 7.4% | $1,650 | 5.8% | B | Nashville-led growth, improving infrastructure |
| Georgia | GA | 7.2% | $1,680 | 5.6% | B | Atlanta metro driving strong demand |
| Utah | UT | 4.7% | $1,480 | 5.4% | B | Tight market, strong tech economy |
| Colorado | CO | 5.2% | $1,980 | 5.3% | B | Denver metro tight, high rents support strong returns |
| Washington | WA | 4.0% | $2,080 | 5.1% | A | Very tight market, high rents, strong employment |
| Massachusetts | MA | 3.4% | $2,500 | 4.7% | A | Extreme supply shortage, very high rents |
| California | CA | 4.1% | $2,040 | 4.2% | C | Very high rents but high costs and regulation |
| New Hampshire | NH | 3.1% | $1,680 | 4.9% | A | Tightest market in US, strong rental demand |
| Vermont | VT | 3.2% | $1,540 | 4.6% | A | Near-zero vacancy, limited supply |
| Rhode Island | RI | 3.6% | $1,720 | 4.8% | A | Tight Boston suburb market |
| Oregon | OR | 4.4% | $1,750 | 4.4% | B | Portland tight, rent control limits upside |
| Arizona | AZ | 6.8% | $1,590 | 4.2% | B | Phoenix/Tucson balanced, growing population |
| Nevada | NV | 6.4% | $1,420 | 4.7% | B | Las Vegas balanced, tourism-tied economy |
| Virginia | VA | 5.1% | $1,680 | 5.2% | B | DC suburb demand, stable government employment |
| Maryland | MD | 4.9% | $1,820 | 4.5% | B | DC market spillover, tight supply |
| Minnesota | MN | 4.8% | $1,480 | 4.1% | B | Twin Cities tight, stable economy |
| Idaho | ID | 4.9% | $1,490 | 5.8% | B | Boise fast-growing, tight supply |
| Illinois | IL | 7.1% | $1,720 | 3.9% | C | Chicago-dominated, moderate growth |
| Michigan | MI | 7.5% | $1,180 | 3.8% | C | Detroit recovery, balanced market |
| Pennsylvania | PA | 6.0% | $1,400 | 3.8% | C | Philadelphia stable, Pittsburgh slow growth |
| New Jersey | NJ | 4.2% | $1,880 | 4.2% | B | NYC suburb, tight supply |
| New York | NY | 4.3% | $2,280 | 3.8% | C | High rents, heavy regulation limits landlord returns |
| Ohio | OH | 8.2% | $1,200 | 4.2% | C | Soft market, modest rent growth |
| Indiana | IN | 8.3% | $1,090 | 3.8% | C | Soft market, flat growth |
| Wisconsin | WI | 5.3% | $1,240 | 3.9% | C | Milwaukee balanced, modest returns |
| Missouri | MO | 8.6% | $1,160 | 3.7% | C | Soft KC/STL markets, below-average growth |
| South Carolina | SC | 8.1% | $1,320 | 5.2% | C | Charleston growing, rest soft |
| Kansas | KS | 7.8% | $920 | 3.1% | D | Soft market, low rents, minimal growth |
| Oklahoma | OK | 8.9% | $1,020 | 3.4% | D | Soft market, oil-dependent economy |
| Alabama | AL | 10.5% | $1,080 | 3.5% | D | High vacancy, slow growth |
| Kentucky | KY | 8.4% | $1,050 | 3.8% | D | Soft market, below-average rents |
| Arkansas | AR | 11.2% | $920 | 3.2% | D | High vacancy, low rents |
| Louisiana | LA | 11.6% | $1,200 | 4.2% | D | High vacancy, hurricane risk |
| New Mexico | NM | 8.7% | $1,080 | 4.1% | D | Soft market, low wages |
| West Virginia | WV | 11.8% | $840 | 2.8% | F | Near-worst vacancy, declining population |
| Mississippi | MS | 12.4% | $980 | 3.1% | F | Highest vacancy nationally, lowest rents |
| District of Columbia | DC | 7.1% | $2,480 | 4.5% | B | High rents, government employment stability |
New Hampshire, Washington, Massachusetts, Vermont, and Rhode Island score A — tight vacancy, high rents, stable demand. Florida, Texas, Georgia, Tennessee, and North Carolina score B with strong growth momentum.
Four data sources are combined: Census ACS vacancy rate (30%), Rentcast YoY rent growth (25%), average 2BR rent level (20%), and market rent vs HUD FMR ratio (25%). Each factor is normalized and weighted to produce a composite score from A to F.
Not necessarily. Market grade reflects demand conditions — supply, vacancy, and rent growth. A D-grade market can still produce strong returns if acquisition costs are low enough. Cap rates in soft markets often exceed tight coastal markets. The scorecard is a demand signal, not an investment recommendation.
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