Massachusetts is a tough state for real estate investors. However, many opportunities exist in the state’s vibrant cities and quieter suburbs.
Whether you’re looking for cash flow from rental properties or long-term appreciation, the Bay State has a market for every investor. In this article, we’ll look at the ten best places to invest in Massachusetts based on growth potential, rent-to-price ratios, and general market attractiveness.
1. Worcester
Worcester, known as the “Heart of the Commonwealth,” is one of the fastest-growing cities in Massachusetts. With a population of over 185,000 and increasing property values, this city offers an excellent opportunity for real estate investors. Worcester’s median home value is around $221,600, with rental prices averaging $1,019. The rent-to-price ratio stands at a solid 0.41, making it a promising city for cash flow investors.
Worcester also boasts a growing number of colleges and universities, attracting students and professionals alike. Over the past decade, the city’s population has grown by 14.1%, helping to drive up rental demand and property appreciation. With the lower entry costs compared to Boston, this city offers the perfect mix of affordability and opportunity.
Why invest in Worcester?
- Affordable entry point with a median home value of $221,600.
- Rent-to-price ratio of 0.41, indicating strong cash flow potential.
- A fast-growing city with a steady population increase.
2. Fall River
Fall River offers some of the best cash flow opportunities in Massachusetts. With an average home price of $249,300 and median rent of $758, the rent-to-price ratio of 0.26 makes it a strong candidate for investors seeking steady income. The city’s inventory of multi-family homes—primarily 3-6 unit buildings—has attracted many real estate investors over the years.
Fall River’s proximity to Providence, Rhode Island, and Boston also makes it an appealing location for those looking to access larger urban centers while benefiting from lower property prices. The city’s rich history and waterfront attractions add to its appeal for both renters and investors.
Why invest in Fall River?
- Affordable housing market with a rent-to-price ratio of 0.26.
- Large inventory of multi-family homes.
- Proximity to major cities like Boston and Providence.
3. New Bedford
New Bedford is another city that real estate investors should keep on their radar. With a median home value of $236,200 and median rents of $812, the rent-to-price ratio of 0.29 shows strong potential for rental income. Like Fall River, New Bedford is known for its multi-family housing stock, offering a wide range of investment opportunities.
The city has been on the rise in recent years, with efforts to revitalize its downtown area and waterfront. Its close proximity to Cape Cod and Martha’s Vineyard makes it attractive to vacationers, offering potential for short-term rentals.
Why invest in New Bedford?
- Affordable real estate with a median home price of $236,200.
- Growing interest in short-term rental opportunities.
- Rent-to-price ratio of 0.29 supports strong rental yields.
4. Springfield
Springfield, also known as the “City of Homes,” offers one of the lowest entry points for real estate investors in Massachusetts. With a median home value of $152,200 and rents averaging $835, Springfield’s rent-to-price ratio of 0.45 is one of the highest in the state, making it ideal for cash flow-focused investors.
Springfield’s economic landscape is diverse, with industries ranging from education and healthcare to manufacturing and entertainment. The city also attracts visitors to attractions like the Basketball Hall of Fame and Six Flags New England, creating a vibrant local economy that supports long-term investment potential.
Why invest in Springfield?
- Low home prices and high rent-to-price ratio of 0.45.
- Strong economic foundation with multiple industries.
- Diverse investment opportunities, from single-family to multi-family homes.
5. Lowell
Lowell is a city on the rise, thanks to its rich history and close proximity to Boston. With a median home value of $270,100 and rents averaging $1,103, Lowell’s rent-to-price ratio of 0.36 makes it an attractive market for real estate investors. The city’s industrial past has transformed into a vibrant urban center, with many old mills being converted into trendy lofts and apartments.
Lowell’s commuter rail connection to Boston makes it especially appealing to young professionals who want to live outside the expensive city but still work there. The city also has a growing student population, thanks to the University of Massachusetts Lowell.
Why invest in Lowell?
- Close proximity to Boston with a lower cost of living.
- Rent-to-price ratio of 0.36 supports solid rental income.
- A mix of urban revitalization and historical charm.
6. Chicopee
Located near Springfield, Chicopee offers affordable real estate with a solid return on investment. The city’s median home value is $175,500, while rents average $885. With a rent-to-price ratio of 0.44, Chicopee is a great place for investors looking to maximize cash flow.
The city’s proximity to major highways like I-90 and I-391 makes it attractive to commuters and businesses. Chicopee is also home to Westover Air Reserve Base, adding to the stability of its rental market.
Why invest in Chicopee?
- Low home prices and a high rent-to-price ratio of 0.44.
- Strong rental market supported by military presence and commuter accessibility.
- Affordable entry point for new investors.
7. Brockton
Brockton, known as the “City of Champions,” has seen significant growth in recent years. The city’s median home value is $264,200, and the median rent is $1,125, resulting in a rent-to-price ratio of 0.39. Its proximity to Boston (about a 40-minute drive) makes it a popular choice for those who want access to the city but prefer a more affordable housing market.
Brockton has a strong rental market, with a diverse population and a steady demand for rental properties. Investors can find both single-family homes and multi-family properties that offer solid returns.
Why invest in Brockton?
- Close proximity to Boston with more affordable home prices.
- Rent-to-price ratio of 0.39 provides solid rental yields.
- Growing population and strong demand for rental properties.
8. Holyoke
Holyoke is a city with a rich industrial history and a growing appeal for investors. With a median home value of $182,700 and median rents of $795, Holyoke offers a rent-to-price ratio of 0.38. The city is undergoing a transformation, with efforts to revitalize its old mill buildings and improve infrastructure.
Holyoke is an attractive market for investors looking for affordable properties with the potential for appreciation. The city’s location near Springfield and the Pioneer Valley region provides access to both urban and rural amenities, making it a well-rounded investment option.
Why invest in Holyoke?
- Affordable real estate with a rent-to-price ratio of 0.38.
- City revitalization efforts boosting property values.
- Proximity to Springfield and rural amenities.
9. Fitchburg
Fitchburg is another Massachusetts city offering low-cost real estate with strong cash flow potential. The city’s median home value is $183,400, with rents averaging $954. Fitchburg’s rent-to-price ratio of 0.41 is attractive to investors seeking high returns on rental properties.
Fitchburg State University adds to the city’s rental demand, as students and faculty often seek off-campus housing. The city is also working on revitalization projects to improve its downtown area and overall livability, making it a promising market for future growth.
Why invest in Fitchburg?
- Low home prices and a rent-to-price ratio of 0.41.
- Strong rental demand driven by the local university.
- Ongoing revitalization projects improving the city’s appeal.
10. North Adams
North Adams offers one of the best rent-to-price ratios in Massachusetts at 0.41. With a median home value of $147,500 and rents averaging $710, this small city in the Berkshires provides an affordable entry point for investors looking for cash flow.
The city is home to the Massachusetts Museum of Contemporary Art (MASS MoCA), one of the largest contemporary art museums in the country, attracting tourists and supporting short-term rental opportunities. North Adams’ affordability and cultural attractions make it an appealing investment for those looking to diversify their portfolio.
Why invest in North Adams?
- Extremely affordable real estate with a rent-to-price ratio of 0.41.
- Strong short-term rental potential due to cultural tourism.
- Access to outdoor recreation and the Berkshires region.
Where Should You Invest?
Massachusetts offers a variety of real estate investment opportunities, from affordable cities like Springfield and Holyoke to more established markets like Worcester and Lowell. All else being equal, the key to successful investing is local knowledge. This is why we don’t necessarily choose from the top of this list. We stay in our lane as a We Buy Houses Company in Massachusetts by focusing our work in the North Boston area.