Five Strong Rent-to-Value Markets

Now according to my analysis, some 180 of the 375 U.S. markets have a VTR below 20. But many of these are in small markets or depressed areas. It hardly matters what the VTR is if you can't find a renter, right?

So I also considered projected future job growth, selecting markets anticipating more than 10% growth between now and 2010. And I also considered intangible factors such as quality of life and employment stability.

Finally, I wanted to spread my choices across as many regions of the country as possible.

Here's what I came up with:

1. Austin, Texas (VTR 17.6, future job growth 28.1%). For that matter, you could qualify most of Texas -- Fort Worth, Houston, San Antonio and Dallas all work. Austin has the strongest growth picture, and the rental market is strengthened by the presence of the University of Texas.
2. Rochester, Minn. (VTR 17.7, FJG 12.0%). Solid, stable Rochester is home to the Mayo Clinic, bringing (unfortunately) a need for temporary housing for patients receiving treatments -- and a fair number of medical personnel on short stints.
3. Rockingham County/Stafford County, N.H. (VTR 19.6, FJG 13.8). Where? Rockingham County sits on the narrow New Hampshire Atlantic Coast, just north of Massachusetts and Boston suburbs. The city of Portsmouth is a favorite for the tech industry, small businesses and telecommuters.
4. Lexington, Ky. (VTR 19.3, FJG 13.3%). Home to Toyota's (TM Quote - Cramer on TM - Stock Picks) largest North American plant and Lexmark (LXK Quote - Cramer on LXK - Stock Picks), Lexington is a right-sized city, and it boasts a strong college element -- the University of Kentucky.
5. Atlanta, Ga. (VTR 18.7, FJG 20.5%). The vibrant strength of this market is no surprise, and there's plenty of housing available at reasonable prices. There are lots of renters too, including corporate folks there for short-term steps up the career ladder.

Now, these ratios don't guarantee success. For one thing, they're based on averages. Individual investments all vary -- some may attract better rents than others. Not to mention that out-of-town investing requires special skills, patience and property management services.

But if you're really playing the return-on-investment game, these markets may produce a first-inning win. And that will help you get to The Millionaire Zone.

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