Did you know that Washington, D.C. welcomed nearly 26 million visitors last year? That staggering number highlights just how much the U.S. capital has to offer. From the iconic landmarks like the Lincoln Memorial and the White House to world-class museums and vibrant neighborhoods, there's something for everyone–including real estate investors.
This city isn’t just a tourist hub, though. It’s the heart of American politics and home to a workforce that includes government officials, diplomats, and professionals from around the world. As a result, D.C. has one of the most stable rental markets in the country, making it a prime spot for foreign real estate investors.
For those seeking opportunities in one of the United States’ most international real estate markets, here’s an inside look at seven of D.C. 's best neighborhoods to invest in rental properties.
Located in the heart of D.C., Dupont Circle is the epitome of chic, combining historic rowhouses with a vibrant social scene of trendy cafes and art galleries. The area’s proximity to major employers’ offices downtown and public transportation draws in a young, professional crowd who want stable rental options close to work.
Capitol Hill is home to some of the most iconic American government landmarks, including the U.S. Capitol and the Supreme Court. As a historic neighborhood with a mix of row houses and modern developments, it draws in government employees, lawyers, and lobbyists. Many of whom want rental housing within walking distance of work.
While property prices are steep here relative to other locations, the recent dip in home values suggests a potential opportunity for savvy investors. With 83% of rentals fetching $2,000 or more per month and strong short-term rental income potential, Capitol Hill promises reliability in an iconic setting.
Columbia Heights is a diverse, up-and-coming neighborhood with a strong demand for rental properties. Columbia Heights has seen significant development in recent years, adding residential complexes and improving public spaces.
With a walk score of 93 (on a scale of 0 to 100), residents can easily access shops, eateries, and public transport without needing a car—an attractive feature for renters.
Historic and hip!
Shaw is one of D.C. 's fastest-growing real estate markets, attracting young professionals and international residents drawn to its edgy vibe, nightlife, and great restaurants. The neighborhood’s central location and newer apartment complexes keep rental demand high, and investors are taking note.
For foreign investors, Shaw offers an ideal mix of modern amenities and steady appreciation, making it a strong option for those seeking a stylish, high-demand neighborhood.
Petworth provides a lower entry point into D.C. 's market compared to some other neighborhoods featured on this list. With family-friendly parks, a growing number of small businesses, a diverse population, and a strong sense of community there’s much to offer potential renters.
This neighborhood is ideal for those seeking affordable properties that cater to families and young professionals, as well as stable rental demand without the high price tag of D.C.’s downtown areas.
D.C.’s Navy Yard has transformed into a sleek, waterfront district popular with young professionals and affluent residents, thanks to its trendy dining scene, entertainment options, and scenic location along the Anacostia River. For investors, Navy Yard’s high rental yields and luxury appeal are major draws, especially with rental income in this neighborhood topping all others on our list.
Brookland, a more suburban-style neighborhood known for its tree-lined streets, historic homes, and Catholic University campus, offers an attractive, affordable investment opportunity.
It appeals to students, faculty, and young families, making it a stable rental market. Brookland’s ongoing development, including new restaurants, retail, and residential projects, make it an ideal choice for foreign investors seeking lower entry costs in a growing neighborhood.
Washington, D.C. is more than just the nation’s capital—it's a dynamic hub for real estate investment. With a strong economy anchored by government jobs, world-renowned hospitals, major universities, and embassies from around the globe, D.C. offers unparalleled stability for investors.
Here’s what makes D.C. a promising investment location:
D.C.’s rental market is prime for foreign investors seeking steady returns and stable economics. Let Waltz help you secure an investment property in one of the world’s most internationally driven real estate markets.
Digitize every step of the process with Waltz, from property selection to U.S. bank account setup, and DSCR loan financing. Get started today.
All figures are accurate as of November 2024 and may change over time.* Sources for home price and property tax data:
Home price data: Zillow Housing Market
Fill out a quick form and we'll get back to you shortly.
