Topeka is home to the best residential real estate investment market in Kansas.
The 66616 zip code in Topeka presents the greatest opportunity for the best real estate investments among the 2,984 individual real estate markets in Kansas we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in Kansas
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Topeka | 100 | 1.8 | 53% |
| 2 | Larned | 94.7 | 1.5 | 63% |
| 3 | Baxter Springs | 93.9 | 1.9 | 46% |
| 4 | Fort Scott | 93.0 | 2.1 | 47% |
| 5 | Iola | 91.3 | 1.7 | 49% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in Kansas.
1. Topeka
We've identified the 66616 zip code in Topeka as Kansas's best real estate investment market. Here's why.
🔎 Key data about Topeka (66616)
| Data point | Value | Rank in state (of 2,984 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $92,943[1] | 7th lowest |
| Five-year appreciation | 53%[2] | 10th highest |
| Household income | $51,893[3] | 122nd highest |
| Affordability ratio | 1.8 | 9th most affordable |
| Five-year population growth | 2.4%[4] | 24th highest |
| Unemployment rate | 3.6%[5] | 5th lowest |
| Property taxes | $1,273[6] | 7th lowest |
| Educational attainment | 14%[7] | 109th highest |
Topeka (zip code 66616) is the best residential real estate investment market in Kansas. It has the 10th highest property value appreciation among markets we evaluated, with a 53% appreciation of the typical property over the last five years.
Topeka is the 9th most affordable market among the 2,984 Kansas markets we evaluated, with an affordability ratio of 1.8.
2. Larned
The 67550 zip code in Larned is the runner-up spot for the best real estate investments in Kansas.
🔎 Key data about Larned (67550)
| Data point | Value | Rank in state (of 2,984 markets) |
|---|---|---|
| InvestScore | 94.7 | 2nd highest |
| Typical property value | $101,016[1] | 9th lowest |
| Five-year appreciation | 63%[2] | 2nd highest |
| Household income | $65,400[3] | 85th highest |
| Affordability ratio | 1.5 | 3rd most affordable |
| Five-year population growth | -0.6%[4] | 99th highest |
| Unemployment rate | 2.6%[5] | lowest |
| Property taxes | $2,005[6] | 29th lowest |
| Educational attainment | 18%[7] | 105th highest |
The 67550 zip code in Larned features a typical property value of $101,016, the 9th lowest in the state.
Property values have appreciated 63% over the past five years, the 2nd highest increase among evaluated markets in the state. Larned homes have an affordability ratio of 1.5, the 3rd most affordable in the state.
3. Baxter Springs
The 66713 zip code in Baxter Springs comes in at No. 3 in our ranking of the best residential real estate investment markets in Kansas.
🔎 Key data about Baxter Springs (66713)
| Data point | Value | Rank in state (of 2,984 markets) |
|---|---|---|
| InvestScore | 93.9 | 3rd highest |
| Typical property value | $115,467[1] | 15th lowest |
| Five-year appreciation | 46%[2] | 25th highest |
| Household income | $61,250[3] | 96th highest |
| Affordability ratio | 1.9 | 10th most affordable |
| Five-year population growth | 1.3%[4] | 40th highest |
| Unemployment rate | 3.1%[5] | 2nd lowest |
| Property taxes | $1,293[6] | 8th lowest |
| Educational attainment | 12%[7] | 113th highest |
With a typical property value of $115,467, Baxter Springs's 66713 zip code features the 15th lowest property values in the state.
Baxter Springs homes have an affordability ratio of 1.9, the 10th most affordable among the markets we evaluated.
4. Fort Scott
The 66701 zip code in Fort Scott ranks No. 4 among Kansas's residential real estate investment markets.
🔎 Key data about Fort Scott (66701)
| Data point | Value | Rank in state (of 2,984 markets) |
|---|---|---|
| InvestScore | 93.0 | 4th highest |
| Typical property value | $121,155[1] | 21st lowest |
| Five-year appreciation | 47%[2] | 22nd highest |
| Household income | $56,795[3] | 22nd highest |
| Affordability ratio | 2.1 | 15th most affordable |
| Five-year population growth | 3.9%[4] | 16th highest |
| Unemployment rate | 2.6%[5] | lowest |
| Property taxes | $1,832[6] | 23rd lowest |
| Educational attainment | 24%[7] | 94th highest |
Property values in Fort Scott's 66701 zip code have seen the 22nd highest increase among evaluated markets in the state, with an appreciation of 47% over the past five years.
Fort Scott's affordability ratio of 2.1 makes it the 15th most affordable among the 2,984 markets we evaluated.
5. Iola
The 66749 zip code in Iola rounds out our top five residential real estate investment markets in Kansas.
🔎 Key data about Iola (66749)
| Data point | Value | Rank in state (of 2,984 markets) |
|---|---|---|
| InvestScore | 91.3 | 5th highest |
| Typical property value | $102,202[1] | 10th lowest |
| Five-year appreciation | 49%[2] | 16th highest |
| Household income | $60,093[3] | 16th highest |
| Affordability ratio | 1.7 | 5th most affordable |
| Five-year population growth | -0.05%[4] | 87th highest |
| Unemployment rate | 2.6%[5] | lowest |
| Property taxes | $1,831[6] | 22nd lowest |
| Educational attainment | 25%[7] | 89th highest |
Property values in Iola's 66749 zip code rose 49% over the last five years, ranking the city 16th highest among evaluated markets in Kansas.
Iola homes have an affordability ratio of 1.7, the 5th most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in Kansas.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in Kansas
To determine the best real estate investments in Kansas we evaluated 2,984 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Kansas.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
