The Best Places to Flip Houses This Year

House flipping isn’t dead. While the profits have been dropping for the past eight years, American house flippers can still earn hefty sums. For successful projects, however, you must know the best places to flip houses in the United States.

What to look for when choosing where to invest? What are the criteria that can help you make smart decisions? Where should you start your house flipping journey? Learn all about flipping houses in the US in this comprehensive guide. Not only will we analyze each state’s house flipping potential, but we will also teach you the basics of how to recognize favorable markets.

How We Determine the Best Markets for Flipping Houses

Knowing how to analyze the house flipping market is crucial for those who want to profit from this activity. Below, you can find the criteria we use to determine the best and the worst markets for flipping houses.

• Homeownership rate – This rate shows how many households own their homes as opposed to renting. House flipping makes sense in communities where families have the purchasing power to invest in their homes. States with low ownership rates, however, attract residents who prefer renting. Meaning, the chance of making a living flipping houses there is low.
• Median household income – This is another vital criterion that defines the purchasing power of families in a specific region. The more money households make in a given state, the higher the chances for you to sell houses to them. So, the best places to flip homes are those with higher median household incomes.
• Home value – Flipping properties can generate more profit in markets where the average home price is high. We prefer, therefore, states where homes are worth more. Plus, a high average market value signals that the demand in that state is high. This also improves your chances of selling a house there.
• Median monthly housing costs – The importance of median housing costs per month is two-fold. First, families prefer investing somewhere where the housing costs aren’t soaring. It’s a logical financial decision. The best cities to flip houses, therefore, have low housing costs. Second, it affects your costs while flipping the house. Most properties stay on the market for at least 70 days, during which you pay such expenses.
• Average full home remodeling costs – This is essential information for house flippers. You don’t want to spend thousands of dollars on remodeling, especially not in markets with a low average sale price. To earn a reasonable flipping houses salary, you need to fix properties for a reasonable cost.
• Number of realtors – The best places to flip houses have an active real estate market. States with more realtors have better chances of selling properties fast. If there are only a few realtors, that’s a sign that the market isn’t attractive there.
• Average listing and sell price – Another key criterion that shows your flipping houses profit potential. The average listing price reveals how much money sellers expect for their properties. The average sell price, by contrast, shows the actual situation and how much homes sell for. The best markets for house flipping have a reasonable ratio of average listing and average sell price.
• Average time to sell – The longer our property remains on the market, the more money you lose. We give better rankings to states where new listings get sold faster. Flipping houses in Vermont, for instance, usually comes with a turnover time of 96 days. Flipping houses in Virginia, in contrast, is much shorter at 73 days. The latter, understandably, will rank better on our list of the best markets for flipping houses.

Best and Worst Markets for Flipping Properties

With so many ranking factors, it’s impossible to highlight one place as the best destination for making money flipping houses. That’s why we summarized all the vital data in two separate tables. The first covers the general factors, while the second focuses on specific criteria.

Overview of General House Flipping Rankings

In the table below, we focus on general data like homeownership rate, median income, housing costs, and remodeling costs. These give you information critical to finding the best areas to flip houses. Yet, they are not as specific as the factors covered in the following section.

These are the highlights that can help you understand where it’s possible to flip cheap houses.

Homeownership rate in 2021

• Top five – West Virginia (73.4%), Maine (72.2), Wyoming (71.9%), Minnesota (71.9%), Michigan (71.6%)
• Worst five – D.C. (42.5%), New York (53.5%), California (54.9%), Nevada (56.6%), Hawaii (60.2%)

Median household income

• Top five – D.C. ($90,842), Maryland ($86,738), Massachusetts ($85,843), New Jersey ($85,751), Hawaii ($83,102) 
• Worst five – Mississippi ($45,752), West Virginia ($48,850), Arkansas ($48,952), Louisiana ($51,073), Alabama ($51,734)

Median household costs per month

• Top five – West Virginia ($1,052), Arkansas ($1,094), Indiana ($1,146), Mississippi ($1,149), Alabama ($1,172)
• Worst five – D.C. ($2,676), Hawaii ($2,472), California ($2,421), New Jersey ($2,413), Massachusetts ($2,276)

Average remodeling costs

• Top five – Arkansas ($75,888), Tennessee ($82,928), Utah ($83,014), Iowa ($85,478), Idaho ($98,176)
• Worst five – Massachusetts ($323,311), Oregon ($311,185), New York ($289,719), Connecticut ($278,469), Rhode Island ($275,515)

Lowest remodeling costs

• Top five – Utah ($12,000), Missouri ($14,000), Kentucky ($15,000), Tennessee ($16,000), Iowa ($16,000)
• Worst five – California ($48,000), Oregon ($47,000), Connecticut ($46,000), Massachusetts ($44,000), Alaska ($41,000)

Rental vacancy rate

• Top five – New Jersey (2.5%), Vermont (2.7%), Utah (3.2%), Oregon (3.3%), Massachusetts (3.4%)
• Worst five – North Dakota (12.8%), Alabama (12%), Mississippi (10.7%), Indiana (9.7%), Oklahoma (9.5%)

Utah and Missouri establish themselves as the best places to flip houses in terms of low remodeling costs. New Jersey, meanwhile, has the lowest rental vacancy rate. West Virginia boasts the highest homeownership rate in the US and the lowest housing costs. Families in the District of Columbia, Massachusetts, and Maryland, however, have the strongest purchasing power.

Flipping houses in Hawaii doesn’t make sense, at least not without a considerable investment. The state, while an attractive destination, has high housing costs. Plus, its homeownership rate is only 60.2%. So, it doesn’t belong among the best states to flip houses.

State	2021 Homeownership Rate in %	Median Household Income in USD	Median Monthly Home payment in USD	Average Remodeling Cost in USD	Lowest Remodeling Cost in USD	2021 Rental Vacancy Rate in %
Alabama	68.8	51,734	1,172	130,919	22,000	12.0
Alaska	64.7	75,463	1,882	253,271	41,000	3.5
Arizona	65.3	62,055	1,457	117,175	25,000	4.6
Arkansas	65.5	48,952	1,094	75,888	18,000	7.5
California	54.9	80,440	2,421	263,484	48,000	3.5
Colorado	65.9	77,127	1,845	191,645	27,000	5.2
Connecticut	65.0	78,833	2,087	278,469	46,000	4.7
Delaware	70.3	70,176	1,557	187,117	25,000	5.5
D.C.	42.5	90,842	2,676	198,003	26,000	7.6
Florida	66.2	59,227	1,530	215,057	28,000	5.4
Georgia	64.1	61,980	1,450	229,955	24,000	6.0
Hawaii	60.2	83,102	2,472	202,600	22,000	8.3
Idaho	71.6	60,999	1,306	98,176	17,000	4.8
Illinois	66.0	69,187	1,688	212,166	32,000	8.0
Indiana	69.3	57,603	1,146	106,932	18,000	9.7
Iowa	70.5	61,691	1,266	85,478	16,000	7.5
Kansas	66.5	62,087	1,387	102,111	20,000	6.3
Kentucky	67.0	52,295	1,179	100,833	15,000	6.0
Louisiana	66.5	51,073	1,279	139,256	26,000	8.0
Maine	72.2	58,924	1,387	275,515	40,000	5.8
Maryland	66.8	86,738	2,015	227,386	32,000	4.3
Massachusetts	62.2	85,843	2,276	323,311	44,000	3.4
Michigan	71.6	59,584	1,285	147,512	22,000	4.4
Minnesota	71.9	74,593	1,595	157,636	37,000	5.1
Mississippi	67.3	45,792	1,149	107,966	17,000	10.7
Missouri	67.1	57,409	1,271	131,003	14,000	8.0
Montana	68.9	57,153	1,466	139,763	23,000	4.1
Nebraska	66.3	63,229	1,427	130,800	18,000	4.6
Nevada	56.6	63,276	1,589	127,166	35,000	6.4
New Hampshire	71.0	77,933	1,963	182,333	34,000	4.3
New Jersey	63.3	85,751	2,413	212,164	31,000	2.5
New Mexico	68.1	51,945	1,269	139,763	23,000	6.6
New York	53.5	72,108	2,156	289,719	32,000	4.5
North Carolina	65.3	57,341	1,318	154,544	21,000	6.3
North Dakota	61.3	64,577	1,430	134,928	22,000	12.8
Ohio	66.0	58,642	1,250	148,708	21,000	5.0
Oklahoma	65.5	54,449	1,231	109,911	22,000	9.5
Oregon	62.9	67,058	1,750	311,185	47,000	3.3
Pennsylvania	68.4	63,463	1,477	164,242	20,000	6.0
Rhode Island	61.7	71,169	1,837	275,515	40,000	4.0
South Carolina	70.3	56,277	1,250	152,965	29,000	7.7
South Dakota	67.8	59,533	1,371	134,928	22,000	7.2
Tennessee	66.5	56,071	1,264	82,928	16,000	6.6
Texas	61.9	64,034	1,675	191,780	27,000	8.0
Utah	70.6	75,780	1,605	83,014	12,000	3.2
Vermont	70.9	63,001	1,606	275,515	40,000	2.7
Virginia	66.1	76,456	1,792	177,540	23,000	5.7
Washington	63.1	78,687	1,951	202,258	27,000	3.6
West Virginia	73.4	48,850	1,052	198,003	26,000	8.1
Wisconsin	67.2	64,168	1,412	144,681	27,000	5.4
Wyoming	71.9	65,033	1,417	139,763	23,000	7.1

(Stewart, Census, Houzz, World Population Review, Census)

Overview of Specific House Flipping Rankings

Now, let’s see how each state is doing in terms of median home value. We will also analyze the average prices of listings and sold homes as well as the average turnover time. This table dives deeper into the best states to flip houses and what makes them a suitable choice.

Here are the highlights you should keep in mind.

Median home value

• Top five – Hawaii ($669,200), D.C. ($618,100), California ($568,200), Massachusetts ($418,600), Colorado ($394,600)
• Worst five – West Virginia ($124,600), Mississippi ($128,200), Arkansas ($136,200), Oklahoma ($147,000), Kentucky ($154,700)

Average listing price

• Top five – California ($758,755), Hawaii ($691,586), Massachusetts ($644,536), Utah ($590,049), New York ($583,882)
• West Virginia ($171,177), Kansas (207,373), Ohio ($208,283), Arkansas ($216,417), Iowa ($223,096)

Average sell price

• Top five – Hawaii ($865,500), California ($725,500), Massachusetts ($670,000), Washington ($629,993), Montana (629,950)
• Worst five – West Virginia ($218,575), Ohio ($225,000), Michigan ($251,627), Indiana ($271,200), Mississippi ($274,950)

Average days on the market

• Top five – Tennessee (68), New Hampshire (68), Washington (68), Nevada (69), Arizona (69) 
• Worst five – Wyoming (104), New York (101), Montana (100), Vermont (96), West Virginia (96)

Number of realtors

Top five – Arizona (168), Hawaii (173), Florida (175), D.C. (193), Nevada (200)

Worst five – West Virginia (677), Mississippi (628), South Dakota (534), Alaska (533), Kentucky (508)

While Hawaii was hardly among the best states to flip houses based on the previous factors, here it’s in the top destinations for finding properties to flip. Hawaii has one realtor per 173 people, which is excellent. The state also has a high listing and selling price and soaring average home value.

Washington is an excellent destination for finding houses to flip when it comes to expected house value change and turnover time. D.C. is another obvious pick, with its average time on the market of only 77 days. Massachusetts is another state not to overlook, as it’s in the top five destinations in several categories.

Florida outperforms most states by the number of realtors, while its other rankings are average. If you want to invest in this state, Tampa is among the best places to flip houses in Florida.

State	Median Home Value in USD	Average listing price in USD	Average sale price in USD	Average time to sell in days	1 Realtor Per How many People
Alabama	154,000	271,171	319,450	79	441
Alaska	281,200	331,559	399,700	85	533
Arizona	255,900	441,251	477,500	69	168
Arkansas	136,200	216,417	275,000	84	447
California	568,500	758,755	725,000	71	241
Colorado	394,600	568,012	600,000	71	257
Connecticut	280,700	439,532	475,000	77	229
D.C.	618,100	579,005	621,250	77	193
Delaware	261,700	381,200	466,925	88	366
Florida	245,100	380,382	465,000	78	175
Georgia	202,500	357,145	394,900	75	432
Hawaii	669,200	691,586	865,500	86	173
Idaho	255,200	524,923	549,900	75	267
Illinois	209,100	253,318	299,000	79	319
Indiana	156,000	227,304	271,200	72	445
Iowa	158,900	223,096	279,500	87	491
Kansas	163,200	207,373	280,595	85	385
Kentucky	151,700	243,086	282,500	83	508
Louisiana	172,100	268,909	284,950	95	441
Maine	200,500	326,264	387,000	87	334
Maryland	332,500	N/A	399,950	73	282
Massachusetts	418,600	644,536	670,000	69	350
Michigan	169,600	251,627	269,900	76	460
Minnesota	246,700	318,350	373,500	74	329
Mississippi	128,200	231,063	274,950	85	628
Missouri	168,000	243,922	280,975	81	322
Montana	253,600	477,295	629,950	100	290
Nebraska	172,700	261,592	327,450	79	478
Nevada	317,800	410,281	475,000	69	200
New Hampshire	281,400	418,195	499,450	68	268
New Jersey	348,800	443,933	479,950	76	201
New Mexico	180,900	295,535	373,768	92	375
New York	338,700	583,882	582,450	101	409
North Carolina	193,200	359,532	410,000	75	308
North Dakota	205,400	254,922	289,900	92	486
Ohio	157,200	208,283	225,000	74	433
Oklahoma	147,000	229,200	281,669	82	456
Oregon	354,600	509,970	549,995	78	307
Pennsylvania	192,600	271,362	280,000	84	465
Rhode Island	283,000	417,550	481,975	70	275
South Carolina	179,800	307,848	355,257	75	350
South Dakota	185,000	267,856	350,000	78	534
Tennessee	191,900	343,458	425,000	68	337
Texas	200,400	332,593	389,945	76	340
Utah	330,300	590,049	579,500	69	265
Vermont	233,200	351,082	443,000	96	378
Virginia	288,800	369,607	425,000	73	295
Washington	387,600	563,486	629,993	68	448
West Virginia	124,600	171,177	218,575	96	677
Wisconsin	197,200	277,017	349,900	83	457
Wyoming	235,200	302,114	430,000	104	313

(Stewart, Census, Zillow, ListWithClever, The American Genius)

Best Cities to Flip Homes in the United States

In the tables above, we analyzed the states and their rankings in all the relevant categories. Here, let us list the ultimate city leaders in the house flipping market.

West Valley City, Utah

Flipping houses in Utah can earn you an excellent salary as a house flipper. This state topped our list of best destinations thanks to a short turnover time, high homeownership rate, and low remodeling costs. On average, house flippers spend about $83,000 to remodel a house in Utah, while the lowest expenses move around $12,000. West Valley City stands out among the best cities to flip houses in this state.

Greensboro, North Carolina

With a median home value of $193,200, North Carolina is another house flipping destination for those ready to invest under $200,000. House flippers can remodel homes in this state for a minimum of $21,000, which is a solid amount. Homes in the state sell in two and a half months, which isn’t the best, but the housing costs are a reasonable $1,318 or so.

With a growing real estate market, Greensboro is among the best places to flip houses in North Carolina. This destination offers a solid quality of life, and it’s the largest economy in the state. Meaning, those who move there can expect high-paying jobs. That’s why Greensboro is a top spot for those who want to try our flipping houses in North Carolina.

Pittsburgh, Pennsylvania

Pennsylvania has an average ranking in most categories, but that doesn’t mean you should overlook it. The city’s average ROI of flipping houses is an impressive 162.4%. Selling takes about 84 days, and the cheapest remodeling costs about $20,000. All these figures make the destination a smart choice.

Pittsburgh and Philadelphia are the best places to flip houses in Pennsylvania. The latter is the obvious choice, being a popular city in general. Pittsburgh, however, allows you to find cheap properties and make hefty earnings. Making money flipping houses isn’t about investing in popular and expensive markets. It’s about finding growing markets and properties with high potential. Pittsburgh fits that description perfectly.

New Orleans, Louisiana

While flipping houses in Louisiana may not be the obvious choice, the state is a place of opportunity. New Orleans is among the best cities to flip houses in Louisiana, as its market significantly improved after Katrina. It remains the most populated place in the state. The average ROI in Louisiana is 104.2%, and you can give a house a makeover for a minimum of $26,000. With a median home value of nearly $172,100, this is the right place for a house flipper with an investment of that size.

Denver, Colorado

If you’re looking for the best places to flip houses in Colorado, consider investing in Denver. The average ROI in this city is 155.6%, thanks to the many tech companies that operate from there. Colorado ranks excellent in most categories and only underperforms when it comes to remodeling prices. Still, it’s possible to find great house flipping properties and sell them within two and a half months.

Boston, Massachusetts

Boston is one of the best places to flip houses in Massachusetts and the US. The Bay State is an excellent destination in various aspects. Properties there have significant value, and the rental vacancy rate is low. Homes in the state further sell pretty fast. Massachusetts ranked 4^th in the average turnover time category. Just make sure not to overlook the high remodeling and housing costs in the state. These prevent you from finding properties to flip without a significant starting investment.

San Diego, California

San Diego is one of the best cities to flip houses in California, with its year-over-year increase in gross profit of 8.7%. California ranked 8^th for the number of realtors and 2^nd for the average sell price. For flipping houses in California, however, you will need a hefty starting investment and at least $48,000 for remodeling.

Memphis, Tennessee

Even though it’s toward the bottom of our list, Tennessee is another top spot for making a nice house flipping salary. The reason? You only need about $16,000 to remodel a home. When it comes to the best places to flip houses in Tennessee, the crown goes to Memphis. In this city, homes sell fast, and the average ROI is an impressive 132.7%.

Atlantic City, New Jersey

New Jersey boasts a high average median income and a robust house market. The state also has many realtors and an average ROI of 141.6%. It is, therefore, an excellent destination for house flippers to consider. As for the best places to flip houses in NJ, we would recommend Atlantic City. Due to its proximity to New York and rapid growth, Atlantic City is an attractive destination. The same can be said about flipping houses in Maryland, the state that ranked just under New Jersey.

Virginia Beach, Virginia

Virginia has a lot to offer to house flippers, starting with an average ROI of nearly 100%. The average profit per flip in this state is $91,783, while homes sell in about 73 days. Virginia Beach, Lexington, and Chesapeake are some of the best places to flip houses in Virginia. Here, the market is stable, and the prices are reasonable. Meaning, it’s possible to flip cheap houses and make a profit.

(CNBC, Bob Vila, Redfin)

House Flipping FAQ

What is house flipping?

House flipping is purchasing a property and intending to sell it for a profit. Flipping is an investment strategy where the investor buys something and quickly resells it for a higher price. Often, the process includes remodeling the property to increase its profit potential.

Is flipping houses still profitable?

Yes, but the potential fluctuates. In 2021, the average gross profit of house flipping was about $65,000. In 2022, it rose marginally to $67,000. The ROI of house flipping, meanwhile, heavily depends on the state.

(The Motley Fool)

How much does the average house flipper make?

This depends on many factors, including location, marketing, and skills. Naturally, the best places to flip houses would be more profitable. On average, though, experienced flippers can end up with a profit of $25,000 per flip. In Mississippi, for example, the average gain is $10,000, while in Missouri, it moves around $36,000. According to ZipRecruiter, the average house flipper salary in 2022 is $74,680 a year.

(ZipRecruiter)

What kind of homes are the best to flip?

A three-bedroom house of 2,000 square feet is the typical home purchase in the US. This home includes three bathrooms and costs about $230,000. So, this type of house is your best bet if you want to make a profit out of house flipping.

What is the 70% rule in house flipping?

A house flipper should invest no more than 70% of the after repair value (ARV) of the property, minus repair costs. ARV represents the value of an estate after repairs have been done. For example, let’s say the ARV is $100,000, and repairs cost $15,000. So, the investor shouldn’t pay more than $55,000 (70% of $100,000 minus the $15,000). Applying this rule ensures you won’t overpay for properties you want to flip.

The Bottom Line

When you know the best places to flip houses and have the right information, you can profit from house flipping. Beware that flipping homes is a time-consuming task that also requires money and skills. Once you get the knack for it, however, you can make an average of $25,000 per successful house flip.

References: Stewart, Census, Houzz, World Population Review, Census, Zillow, ListWithClever, The, American Genius, CNBC, Bob Vila, Redfin, The Motley Fool