Northbridge is home to the best residential real estate investment market in Massachusetts.
The 01534 zip code in Northbridge presents the greatest opportunity for the best real estate investments among the 2,720 individual real estate markets in Massachusetts 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Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.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 Massachusetts
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Northbridge | 100 | 3.6 | 46% |
| 2 | Barre | 98.7 | 3.5 | 45% |
| 3 | Rutland | 94.2 | 3.5 | 44% |
| 4 | Sturbridge | 90.4 | 3.6 | 41% |
| 5 | Adams | 89.6 | 4.3 | 56% |
🚨 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 Massachusetts.
1. Northbridge
We've identified the 01534 zip code in Northbridge as Massachusetts's best real estate investment market. Here's why.
🔎 Key data about Northbridge (01534)
| Data point | Value | Rank in state (of 2,720 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $510,831[1] | 91st lowest |
| Five-year appreciation | 46%[2] | 49th highest |
| Household income | $141,250[3] | 79th highest |
| Affordability ratio | 3.6 | 9th most affordable |
| Five-year population growth | 2.2%[4] | 48th highest |
| Unemployment rate | 4.9%[5] | 5th lowest |
| Property taxes | $4,991[6] | 116th lowest |
| Educational attainment | 45%[7] | 149th highest |
Northbridge (zip code 01534) is the best residential real estate investment market in Massachusetts. It has the 49th highest property value appreciation among markets we evaluated, with a 46% appreciation of the typical property over the last five years.
Northbridge is the 9th most affordable market among the 2,720 Massachusetts markets we evaluated, with an affordability ratio of 3.6.
2. Barre
The 01005 zip code in Barre is the runner-up spot for the best real estate investments in Massachusetts.
🔎 Key data about Barre (01005)
| Data point | Value | Rank in state (of 2,720 markets) |
|---|---|---|
| InvestScore | 98.7 | 2nd highest |
| Typical property value | $393,179[1] | 38th lowest |
| Five-year appreciation | 45%[2] | 68th highest |
| Household income | $111,148[3] | 180th highest |
| Affordability ratio | 3.5 | 7th most affordable |
| Five-year population growth | 8.7%[4] | 3rd highest |
| Unemployment rate | 4.9%[5] | 5th lowest |
| Property taxes | $5,258[6] | 129th lowest |
| Educational attainment | 34%[7] | 202nd highest |
The 01005 zip code in Barre features a typical property value of $393,179, the 38th lowest in the state.
Property values have appreciated 45% over the past five years, the 68th highest increase among evaluated markets in the state. Barre homes have an affordability ratio of 3.5, the 7th most affordable in the state.
3. Rutland
The 01543 zip code in Rutland comes in at No. 3 in our ranking of the best residential real estate investment markets in Massachusetts.
🔎 Key data about Rutland (01543)
| Data point | Value | Rank in state (of 2,720 markets) |
|---|---|---|
| InvestScore | 94.2 | 3rd highest |
| Typical property value | $514,762[1] | 96th lowest |
| Five-year appreciation | 44%[2] | 71st highest |
| Household income | $145,707[3] | 71st highest |
| Affordability ratio | 3.5 | 6th most affordable |
| Five-year population growth | 1.6%[4] | 67th highest |
| Unemployment rate | 4.9%[5] | 5th lowest |
| Property taxes | $5,657[6] | 158th lowest |
| Educational attainment | 42%[7] | 161st highest |
With a typical property value of $514,762, Rutland's 01543 zip code features the 96th lowest property values in the state.
Rutland homes have an affordability ratio of 3.5, the 6th most affordable among the markets we evaluated.
4. Sturbridge
The 01566 zip code in Sturbridge ranks No. 4 among Massachusetts's residential real estate investment markets.
🔎 Key data about Sturbridge (01566)
| Data point | Value | Rank in state (of 2,720 markets) |
|---|---|---|
| InvestScore | 90.4 | 4th highest |
| Typical property value | $489,337[1] | 81st lowest |
| Five-year appreciation | 41%[2] | 115th highest |
| Household income | $137,730[3] | 115th highest |
| Affordability ratio | 3.6 | 8th most affordable |
| Five-year population growth | 4.4%[4] | 23rd highest |
| Unemployment rate | 4.9%[5] | 5th lowest |
| Property taxes | $6,595[6] | 207th lowest |
| Educational attainment | 48%[7] | 130th highest |
Property values in Sturbridge's 01566 zip code have seen the 115th highest increase among evaluated markets in the state, with an appreciation of 41% over the past five years.
Sturbridge's affordability ratio of 3.6 makes it the 8th most affordable among the 2,720 markets we evaluated.
5. Adams
The 01220 zip code in Adams rounds out our top five residential real estate investment markets in Massachusetts.
🔎 Key data about Adams (01220)
| Data point | Value | Rank in state (of 2,720 markets) |
|---|---|---|
| InvestScore | 89.6 | 5th highest |
| Typical property value | $254,906[1] | 3rd lowest |
| Five-year appreciation | 56%[2] | highest |
| Household income | $58,929[3] | highest |
| Affordability ratio | 4.3 | 48th most affordable |
| Five-year population growth | -0.4%[4] | 280th highest |
| Unemployment rate | 4.9%[5] | 5th lowest |
| Property taxes | $3,638[6] | 20th lowest |
| Educational attainment | 25%[7] | 233rd highest |
Property values in Adams's 01220 zip code rose 56% over the last five years, ranking the city highest among evaluated markets in Massachusetts.
Adams homes have an affordability ratio of 4.3, the 48th 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 Massachusetts.
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 Massachusetts
To determine the best real estate investments in Massachusetts we evaluated 2,720 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in Massachusetts.
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.
