Top 5 Sacramento Neighborhoods for Renters
Scientifically speaking, of course
You know where to look if you’re planning on investing in Sacramento, but what if you’re planning on living there?
First, let’s consider what differentiates the two. Naturally, investors want properties that will attract tenants. This usually means that they want the same things tenants want: good schools, proximity to shopping centers, safe neighborhoods, and the like. That said, investors wouldn’t be investors if they didn’t care about the bottom line. They would be much more inclined to buy an undervalued home in a mediocre neighborhood, as it would prove a sound investment. Furthermore, investors care about the long term. If they believe that a property’s value will go up in the future, they will buy.
Renters, on the other hand, tend to look for the best houses within their price range. While price is still important, they generally won’t rent a house in what they deem a lower quality neighborhood simply because it’s a good price relative to other homes nearby. They’re not concerned with making a profit; they’re concerned with making a living. Long term trends matter much less to renters, who rarely stay in the house more than a few years.
Simply put, investors are looking for a deal. Renters are looking for a home. Here’s where to look.
Sierra Oaks — Quality
Let me get this out of the way: Sierra Oaks is not the cheapest place to live. The income per capita is over twice the Sacramento average, and property values aren’t far behind. Of course, you’re paying for a reason — Sierra Oaks houses are among the best in Sacramento, and the area contains just about everything you could ask for. If you want the comprehensive package of amenities, safety, and good schools, look no further than Sierra Oaks.
Since many Sierra Oaks residents own their homes, rentals may be hard to come by. A 1,300 square foot 2 bedroom, 2 bathroom home will run you about $1,600 a month, and this is on the smaller side as far as Sierra Oaks homes go.
Elmhurst — Safety and Convenience
Elmhurst has the second lowest crime rate in Sacramento, trailing only behind Sierra Oaks. That said, Elmhurst has plenty to offer that Sierra Oaks doesn’t — namely, atmosphere and convenience. Elmhurst is considered a historic district, making for a much different vibe than newer suburbs. Residents also love Elmhurst for its proximity to Downtown Sacramento and the Sac State campus. The average home value in Elmhurst is around $390,000, over $100,000 less than Sierra Oaks. Employment also stands out as a positive, with unemployment hovering around 3.3%, good for fourth in Sacramento (Sierra Oaks unemployment is listed as 5.4%). Families tend to gravitate towards Elmhurst as well, with household size averaging 2.5. Similar neighborhoods tend to average around 2.
Living in Elmhurst is somewhat of a trade-off. What these historical homes lack in size, they make up for in location and atmosphere. A single bedroom unit will run you about $1,250.
River Park — Schools
Though I singled out River Park for its outstanding schools, I should note that many rankings put it at or near the top of the best overall neighborhoods in Sacramento as well. Average test scores are 11% higher than Sacramento as a whole, with schools like Caleb Greenwood Elementary and Sutter Middle School receiving rave reviews from parents. Plus, it’s a popular choice for Sacramento State students, and some landlords have been known to offer lower prices than usual in an attempt to tap into this demographic. River Park also looks good by other measures, with low unemployment, low crime rate, and high median income. Perhaps best of all, River Park is affordable, with median rent well below the Sacramento average. If I were to choose a “best in show”, River Park would be a serious contender.
Since the area is somewhat geared toward college students, there are plenty of nice apartments and townhouses. You can find a sizeable 2 bedroom, 2 bathroom unit for under $1,000.
Newton Booth — Value
I should probably clarify that “value” means more than just a cheap price tag. Among Homesnacks’ Top 10 Sacramento neighborhoods, Newton Booth property values are far and away the lowest, and rent follows suit. Despite the difference in cost, Newton Booth hangs right in there with the other top neighborhoods in nearly every quality of life measure. Value doesn’t just mean rent prices, either — the overall cost of living in Newton Booth is 6% lower than the Sacramento average. Newton Booth is arguably the hottest rental market in Sacramento as well, with an astonishing 80.3 percent of all households being occupied by renters. It’s no secret that Newton Booth is one of the best places to rent in Sacramento.
One of the upsides to such a bustling rental market is that you’ll never struggle to find a place. A typical 2 bedroom, 2 bathroom condo will run you around $1,200 a month.
Land Park/South Land Park — All of the Above
I couldn’t help but save the best for last. Land Park has it all and then some: It’s quiet, it’s safe, it’s affordable, and perhaps most importantly, it’s beautiful. With lower unemployment rates than Sierra Oaks, lower property values than Newton Booth, and less crime than all but two Sacramento neighborhoods. What really sets Land Park apart, though, is the fact that it’s on the upswing. Though there’s plenty of awesome greenery already, city planners are working to make it even more appealing through projects like turning the old railroad tracks into running trails.
When it comes to outstanding neighborhoods, Land Park covers all the bases, and at an amazing price. A 3 bedroom house can be found for just a little over $1,300 a month.
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