Welcome to the Neighborhood.

Confidently evaluate and compare different neighborhoods with our proprietary, data-driven Roofstock Neighborhood Rating.


The rental home is important, but so is location

Whether you live around the corner or across the country, understanding the characteristics of a neighborhood is crucial to determining investment appeal. That’s why Roofstock created the Roofstock Neighborhood Rating, a powerful algorithm that normalizes neighborhood data across markets and enables you to compare investment properties on an even footing. This dynamic system measures a dozen key attributes including school district quality, home values, employment rates, income levels and other vital investment criteria, empowering rental home investors to quickly and confidently make an informed purchase decision.

Use the Roofstock Neighborhood Rating to measure investment risk against potential return

Neighborhood Profile

This is the most affluent type of neighborhood on our rating scale, with higher-income residents and newer homes far above the median price. The school districts in this area are top-rated and highly desirable.

Risks & Rewards

Homes in upscale neighborhoods come at a steeper purchase price, resulting in higher entry costs upfront and lower initial yield. However, properties in 5-star neighborhoods can have lower operational risks and better renter stability.

Get 5 Star Properties
Neighborhood Profile

These medium- to high-income neighborhoods aren’t as upscale as areas with 5 stars, but possess similar attributes. Homes here are generally of high quality and the surrounding school districts are very good.

Risks & Rewards

Buyers looking for quality homes in an area with more manageable entry costs than 5-star neighborhoods should consider 4-star neighborhoods. Yields are generally higher than in 5-star areas but lower than in 3-star neighborhoods, since rent is typically a lower percentage of the property value for these more expensive homes.

Get 4 Star Properties
Neighborhood Profile

For buyers who prefer a little variety, 3-star neighborhoods tend to have more inventory than their 4- and 5-star counterparts. These areas typically have decent school districts, above average income levels, and boast a blend of newer and older homes.

Risks & Rewards

These listings often strike a good balance for buyers between risk and reward. It’s easier to find properties in 3-star neighborhoods at median price points with more attractive yields, which can compensate for the somewhat higher risk presented by tenants with lower incomes.

Get 3 Star Properties
Neighborhood Profile

This is a lower-income neighborhood with an even mix of owner- and renter-occupied homes. Homes in 2-star neighborhoods are generally older, and local school district quality is below average.

Risks & Rewards

With lower purchase prices come more opportunity for positive cash flow, so buyers looking to see higher yields should explore 2-star neighborhoods. However, these neighborhoods tend to have older homes, and sometimes have greater variability of cash flow driven by renter instability.

Get 2 Star Properties
Neighborhood Profile

This is a low-income area with older homes and a low average school rating. Compared to higher-ranking areas, 1-star neighborhoods have the greatest amount of renter-occupied properties, the lowest median income, and highest renter instability.

Risks & Rewards

At the lowest entry point for purchasers, properties in 1-star neighborhoods have the greatest risk as well as the greatest potential yield. In 1-star neighborhoods, investors seeking higher potential returns should be willing to take on even greater probability for renter instability, as well as volatility in asset values and cash flow.

Get 1 Star Properties

None of the above should be considered investment advice. Your results may differ. Please consult your financial advisor prior to purchasing through the Roofstock Marketplace.

Learn More

Star Power: Put the Roofstock Neighborhood Rating to Work