For the 2018 Neighborhood Housing Index, ATTOM Data Solutions analyzed home resale profit potential in 3,573 neighborhoods with sufficient home resale data.
Overall, the areas with the highest potential profits from home flipping were those rated F, followed by areas rated D, C, and B. Areas rated A had the lowest potential profits from home flipping.
However, there were 209 A-rated areas with average gross profit margins of 50 percent or more, including the Cottage Grove Heights area of the Chicago metropolitan area in Illinois (ROI 309.2 percent), the Woodmere and Dolfield areas of the Baltimore metropolitan area in Maryland (both ROI 250.0 percent), the West Chesterfield area of the Chicago metropolitan area (ROI 247.8 percent), and the Westside area of the Memphis metropolitan area in Tennessee (ROI 221.9 percent).
Other nearby rankings
2018 Neighborhood Housing Index
Best areas to buy rental properties
Neighborhood Index Method
ATTOM Data Solutions' 2018 Neighborhood Housing Index ranked 10,950 neighborhood housing markets nationwide based on six factors: home affordability, home price appreciation, school performance, crime rate, unemployment rate and property taxes.
The neighborhoods are based on neighborhood boundaries consolidated in the ATTOM data warehouse. The points plotted on the interactive heat map represent the latitude and longitude of the centroid within each neighborhood boundary.
Home affordability is based on each area's home price-to-income ratio, using the first half of 2018 median home price from the ATTOM Data Warehouse and 2017 median household income from the U.S. Census Bureau.
Home price growth is calculated by comparing the median home price in the first half of 2017 to the median home price in the first half of 2018 in each area.
A school's score represents the average score of all schools in each district. The rating is based solely on each school's test performance. Scores are on a scale of 0 to 5, with 5 being the best.
Crime rates are based on a score that compares the combined risk of rape, murder, assault, robbery, burglary, larceny, and vehicle theft to a national average of 100. A score of 200 indicates a combined crime risk that is twice the national average, while a score of 50 indicates half the national risk. The score gives equal weight to different types of crime.
Unemployment rates were calculated for each tract by dividing the total number of employed people by the total population ages 18-65, based on 2017 U.S. Census data.
Property taxes are calculated using county tax assessment data from the ATTOM Data Warehouse, and the average property tax rate for each district is calculated by dividing the average property tax amount by the median home sales price for the first half of 2018.
About the Author Daren Blomquist Daren Blomquist is senior vice president of communications for ATTOM Data Solutions (formerly RealtyTrac) where he leads ATTOM Media, the company's division that publishes original real estate reports sourced from the ATTOM Data Warehouse, the nation's most comprehensive real estate database.
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