The Best Neighborhoods for Real Estate Investment in Tampa

Tampa is regularly ranked as one of the best places to live in the United States - and one of the country’s most liveable large cities. Tampa has it all: outdoor recreation, great weather, culture, sports, and fantastic food. It is little wonder, then, that so many people are interested in investing in real estate in Tampa.

There are a lot of great neighborhoods in Tampa, each with their own unique characteristics and charm. We have narrowed down a list of 9 great communities to invest in, ranging from booming neighborhoods to places that have the potential for tremendous growth. No matter what your investment goals may be, there is a neighborhood in Tampa that is right for you.

Eaton Realty is a full-service real estate company. We work with investors to help maximize the value of their rental properties from buying a rental property to screening tenants to managing the property. If you’d like to learn more about how we can help you find the best rental property for your portfolio, give us a call.

Want to learn even more about finding the best real estate investment opportunities in Tampa? Contact us to speak with an experienced Tampa realtor.

The 11 Best Tampa Neighborhoods for Real Estate Investment

There are different schools of thought when it comes to real estate investing. Some prefer to buy into an established neighborhood where they can be assured that their rental property will be in high demand. Others are more focused on getting a great deal by investing in up-and-coming neighborhoods where there is a bigger potential for growth over time.

Our list of the best Tampa neighborhoods for investment includes both “hot” neighborhoods and those that we believe have a bright future. Your decision on where to invest should be based on what your goals and risk tolerance are when it comes to investing. Our team of real estate agents can help you decide where it makes the most sense for you to invest for your future.

South Tampa

MacDill Air Force Base (AFB) is located in South Tampa, which makes it one of the hottest areas for rental properties. With service members transferring in and out of the base, many choose to live off-base. These service members receive military housing stipends - which means that they typically don’t have a problem making rent.

Of course, South Tampa doesn’t just include MacDill AFB. It also includes Bayshore Beautiful, Palma Ceia, Davis Islands, and South Westshore. It is known for great shopping, an array of restaurant and nightlife options, excellent schools and - of course - fantastic views of the bay. It is close to downtown Tampa as well as St. Petersburg and Clearwater.

South Tampa is a pricier neighborhood, with lots of million dollar homes. The median sale price for homes in South Tampa is $322,000 - an increase of 22% since 2021. If you can afford to buy into this booming neighborhood, however, you will likely be rewarded. Rental prices range from $1,678 for a one bedroom unit to $2,948 for a 3 bedroom home.

Hyde Park

HydePark is part of South Tampa, but we are singling it out for special attention because of its great potential for investment. This historic neighborhood is chock-full of both charming bungalows and apartment buildings. It also features Hyde Park Village, a destination for upscale shopping and dining.

This neighborhood is very walkable, and is conveniently located. Residents are within close reach of downtown Tampa, the University of Tampa, Tampa General Hospital, and the SoHo entertainment district.

With all of these amenities, it isn’t surprising that buying into Hyde Park is expensive. The median sale price is $835,000 - a 34.7% increase from 2021. However, with an average rent price of $2,614, if you can afford to buy into this region, you are sure to see a return.

University Square

Located in North Tampa, University Square is an incredibly diverse neighborhood with a low cost of living. This area has good public schools, great options for nightlife, and close proximity to attractions like Busch Gardens. While University Square has a history of poverty and crime, that reality is beginning to change.

The median sale price for a home in University Square is currently $299,000 - a 45.9% increase from 2021. The cost of an average rental in the neighborhood is $1,558.

As housing prices explode in Tampa, more renters will be looking for affordable options. An investment in University Square allows you to buy a bigger (and/or nicer) rental property for your money. You can rent out your property while the demand for housing continues to grow in the neighborhood. As prices begin to rise, you will then have the option of turning a tidy profit on your investment.

Channel District

The Channel District is a trendy neighborhood in Tampa with exceptional waterfront views. It is known for its bright-color storefronts, patio bars and lounges. The neighborhood also has a number of great attractions like the Florida Aquarium, the Tampa Bay History Center, and Amalie Arena.

Residents of this neighborhood pay a premium for so many nearby amenities. The median sale price for a home was $570,000 - a figure that has risen far less exponentially (13.7%) than other neighborhoods. The average rent in the Channel District is $3,198 per month.

Ybor City

The famed Ybor City is known for its nightlife. It is the place to go for a night on the town. It is also known for its boutiques, vintage shops and Latin American restaurants.

Ybor City is the only neighborhood on Florida’s west coast that has been designated as a National Historic Landmark District. In recent years, more people have been buying into Ybor City because of its vibrant culture and historic charm.

Home sale prices reflect the increasing popularity of Ybor City. The median sale price is currently $285,000, an increase of 37.4% from 2021. Rent for a one bedroom apartment averages out at $1,855 in this neighborhood.

Tampa Heights

Just south of University Square, Tampa Heights is an up-and-coming community that has seen a lot of revitalization efforts in recent years. It is the oldest suburb of Tampa, conveniently located near a range of off-beat restaurants and shops in the repurposed Armature Works and The Heights of Tampa. Tampa Heights is a younger, racially diverse neighborhood.

Over the past few years, home prices in this region have skyrocketed, with the median sale price now $501,700. The average rent in Tampa Heights is $1,705. If you are interested in investing in Tampa Heights, it may be a good idea to purchase a property before prices increase even further.

Seminole Heights

Seminole Heights might be best known for its quaint 20th century homes. The streets of Seminole Heights are lined with architectural gems in the Craftsman, Arts & Crafts, Florida Cracker and Florida Vernacular styles. It is close to ZooTampa, and has a plethora of bohemian bars, restaurants, shops, and galleries.

Unlike most neighborhoods in Tampa, housing prices in Seminole Heights are slightly decreasing. The current median sale price for a home is $475,000, a drop of 1% from 2021. However, rental prices remain strong at $1,861 per month.

FishHawk

Located within Lithia, FishHawk is an incredibly desirable neighborhood. With plenty of trails, it is the largest “green” community in the region. It has great schools and many residents commute to MacDill AFB (with an express bus available for service members). The communities in the FishHawk area - such as FishHawk Ranch - offer amenities like playgrounds, resort-style pools, dog parks, and skateboard parks.

FishHawk is considered a great place to live for families and retirees alike.

FishHawk’s popularity is reflected by its median home sale price of $462,000 - an increase of 14.1% since 2021. The average rent in FishHawk is $1,952. If you’re interested in a stable long-term investment, FishHawk is a great choice.

Highland Pines

Highland Pines is not typically considered a top neighborhood in Tampa. For years, it has been plagued by high crime and high levels of poverty.

Highland Pines is still struggling, yet it does have plenty going for it - like an easy commute downtown and plenty of park space. However, there appears to be strong interest in the community, as evidenced by a 44.9% increase in the median sale price to $282,500. While Highland Pines may be a riskier investment, it also offers a great opportunity to get in on the ground floor - and truly make a difference in the neighborhood.

Riverview

Riverview is an unincorporated suburb of Tampa. It is frequently referred to as one of the best places to live in the Tampa area. Residents are primarily families and young professionals. There are several great parks in the area and the public schools are considered above average.

New construction in Riverview is something worth considering. Many builders weren’t willing to sell to investors in the last two years, but rules have since relaxed. You can buy brand new properties in communities like Triple Creek that will appreciate over time. You’ll receive a 1-year warranty from the builder and you won’t have to worry about having to replace more expensive aspects of the home like the roof or HVAC system any time soon.

Apollo Beach

Apollo Beach is also an unincorporated suburb of Tampa just 30 minutes south of Downtown Tampa. The suburb is a thriving waterfront community that offers a quaint suburban feel not far from the hustle and bustle of Tampa. Apollo Beach is largely composed of families. Purchasing a home in Apollo Beach is a sound investment, because homes have only continued to appreciate in the area. Home prices are up 33% year-over-year.

Like Riverview, the best investment opportunities in Apollo Beach are new construction. Communities like Waterset have several new homes for sale. Now is your opportunity to get in at the ground price and let your new investment home appreciate over time.

What Else Should You Consider Before Buying an Investment Property in Tampa?

As Hurricane Ian recently demonstrated, there is significant potential for catastrophic damage from a storm. While Tampa Bay escaped the worst of this hurricane, residents across Hillsborough County still experienced damage. Weeks after the deadly hurricane, residents were cleaning up debris in and around Tampa.

When you live or own property along Florida's Gulf Coast, hurricanes are a fact of life. The Tampa Bay area is particularly vulnerable to storm surge flooding. While you cannot completely eliminate the risk of flooding, you can minimize the potential for catastrophic damage to your rental property.

Before purchasing an investment property, you can evaluate its flood risk by determining its flood zone using tools from the Federal Emergency Management Administration (FEMA). You can also check out flood maps for Hillsborough County to get a better idea of the risk involved. If possible, you should consider buying flood insurance - which typically is not included as part of a standard insurance policy.

Of course, flooding isn’t the only potential issue that comes with living in a tropical climate. You should have any potential property thoroughly inspected, paying careful attention to the state of the foundation and any pest issues. Terminates are a particular problem in our area, so you will want to hire an inspector who is familiar with the signs of an infestation.

Find a Tampa Rental Property That Meets Your Needs with Eaton Realty

The prospect of purchasing an investment property can be both exciting and daunting. Our goal is to make it as easy as possible for you to find the right rental property for your unique needs. We can also give you peace of mind in knowing that the property is being properly managed by an experienced Tampa property management team. Based in Lithia, Eaton Realty works with landlords throughout the greater Tampa Bay Region. We have deep experience in the Tampa Bay real estate market, and we put that knowledge to work for our clients. To learn more about how we can help you, fill out an online contact form or give us a call at 813-672-8022.