Where Are Investors Buying Rental Properties in Boston?

Boston continues to be one of the strongest rental markets in the United States, attracting both local and out-of-state investors. With consistent demand, competitive appreciation rates, and a diverse tenant base—students, professionals, and families—investors are strategically choosing neighborhoods that offer high rental returns, stable occupancy, and long-term growth potential.

This guide explains where investors are actively purchasing rental properties in Boston, highlighting the neighborhoods that deliver value, strong rental yields, and reliable demand.

Top Boston Neighborhoods for Rental Property Investments

1. East Boston: Rapid Growth & High Rental Demand

East Boston has transformed over the past decade, becoming a hot spot for both renters and real estate investors.
Key benefits include:

• Lower entry prices compared to downtown
• High rental demand from young professionals
• Major development projects and waterfront growth
• Proximity to Logan Airport and Blue Line transit

East Boston rental properties offer excellent cash flow potential due to strong occupancy and rising rental prices.

2. South Boston: Premium Returns and Urban Appeal

South Boston—often called “Southie”—continues to generate interest thanks to:

• Strong appreciation rates
• Luxury apartment growth
• Attractive lifestyle amenities
• Easy access to downtown and the Seaport

Investors prefer South Boston real estate because tenants willingly pay higher rent for walkability and modern housing.

3. Allston-Brighton: Student-Driven Rental Stability

Home to Boston University and Boston College, the Allston–Brighton area remains a consistent performer for rental investors.
Why it stands out:

• Year-round tenant demand
• Steady rental increases
• Popular with students and young professionals
• Strong ROI for multifamily units

Investors seeking high occupancy and predictable rental income often prioritize this neighborhood.

4. Jamaica Plain: Diverse Tenants & Strong Community Appeal

Jamaica Plain offers:

• A mix of single-family homes, triple-deckers, and condos
• Reliable rental demand from families and long-term tenants
• Easy access to parks and the Orange Line

Its balance of affordability and livability makes Jamaica Plain investment properties a stable, long-term rental play.

5. Roxbury: Developing Market With Strong Appreciation Potential

Roxbury has been attracting more attention from investors seeking emerging markets.
Advantages include:

• Lower price points
• Strong appreciation trends
• Increasing redevelopment initiatives
• Close proximity to downtown and Northeastern University

Roxbury rental investments are popular among investors focused on value growth and long-term returns.

6. Dorchester: One of Boston’s Most Active Investment Zones

Dorchester is Boston’s largest neighborhood and offers diverse opportunities.

• Steady rent increases
• A wide variety of property types
• Improvements in transit and infrastructure
• Consistent rental demand

Dorchester is a favorite for both small investors and large-scale property groups targeting high-yield multi-family buildings.

What Makes Boston a Top Market for Rental Investments?

Strong Economy & Employment Base

Boston’s powerful sectors—education, health care, technology, and finance—ensure constant demand for housing.

Large Student Population

Dozens of universities contribute to year-round rental demand, keeping Boston rental properties consistently occupied.

Limited Housing Supply

Strict zoning and high construction costs restrict new supply, boosting both rents and property values.