Is Investing in Great School Districts Still Worth It in 2025?
Would you pay $200K more for a home if it meant securing reliable tenants for years? That’s the dilemma many Columbus real estate investors are facing as they evaluate properties in top-performing school districts. The logic seems sound: better schools attract better tenants, and keep them longer (Niche.com’s Columbus school district ratings).
And the data backs it up. According to the National Bureau of Economic Research, for every $1 spent on public schools, local home values increase by $20. That’s a compelling stat for landlords focused on long-term appreciation.
But here’s the catch: Columbus home prices are climbing, and interest rates haven’t budged. So, does the school district premium still deliver real ROI in today’s climate?
In this guide, we’ll break down how school quality impacts rental demand, home values, and investment performance, with a laser focus on the Columbus, Ohio market. We’ll also explore why school districts matter to Columbus renters.
Parents Rent for Schools, Landlords Should Pay Attention
If you’re investing in Columbus real estate, it’s easy to overlook school ratings, especially if you’re not planning to live there. But for tenants, school districts can be a deciding factor, and that impacts your bottom line.
Why Families Prioritize School Zones
- Parents want stability for their kids.
- Many tenants are intentionally renting in specific districts to access better schools without buying a home.
- School boundaries often dictate rental choices, even more than price or amenities.
The Stability Factor
Good schools don’t just attract families, they keep them. Once a child is enrolled in a top-rated school, families are far less likely to move. The hassle of changing schools is a powerful motivator to stay put, even if rent increases slightly over time.
This means:
- Lower vacancy rates
- Higher tenant retention
- Less frequent turnover and make-ready costs
In other words, better schools = stickier tenants.
RLPM Local Insight
At RL Property Management, we consistently see higher demand and faster leasing in areas like:
- Dublin
- Bexley
- Upper Arlington
These school districts consistently rank among the top in Central Ohio, and the rental demand reflects that. Homes in these zones tend to attract well-qualified tenants who stay multiple years.
What’s in It for Investors?
- More stable income from long-term renters
- Reduced maintenance costs due to fewer turnovers
- Higher quality applications, families with a plan tend to be better prepared financially
If you’re building a rental portfolio in Columbus, school district quality should absolutely be part of your location analysis. Even if you’re not targeting luxury homes, choosing the right district can mean the difference between vacancy headaches and dependable cash flow.
The High Cost of Top-Rated Districts in Columbus
$1.2M Listings and 2% Yields? Why Elite Districts Don’t Always Add Up
Top-performing school districts in Columbus come with prestige, but they also come with a price tag. If you’re eyeing areas like New Albany, Olentangy, or Upper Arlington, be prepared to pay 100% to 200% more than the metro average for a single-family home.
The Reality Check
- Homes in these districts often list for $700K to $1.2M or more.
- Yet, rents rarely scale in proportion. In many cases, monthly rents cap out at $3,000–$4,000, which can make it tough to hit your target ROI.
- Property taxes are also significantly higher, as these communities often fund their school systems locally.
This means you’re facing smaller margins, even before factoring in maintenance, vacancies, and management costs.
Why the Numbers Don’t Always Work
Let’s say you purchase a $900K home in New Albany and rent it for $3,500/month:
- You’re likely nowhere near the 1% rule (which would target $9,000/month in rent).
- You may break even or operate at a loss, after taxes, insurance, and interest.
Even if appreciation is strong, the short-term cash flow is minimal, if not negative.
So, Who Should Invest Here?
- High-net-worth individuals looking for long-term appreciation.
- Investors who prioritize asset stability and are less reliant on monthly income.
- Buyers who can comfortably hold through market cycles, knowing these districts tend to recover faster in downturns.
Appreciation vs. Income
Top-tier school districts typically:
- Hold property values better during downturns.
- Appreciate faster during upswings.
- Attract owner-occupants, limiting rental inventory and increasing tenant demand for the few homes available.
Investor Takeaway
Elite Columbus districts like Olentangy and New Albany are best viewed as appreciation plays, not cash flow generators. If your strategy is to grow equity while keeping turnover low, these areas may work. But if you’re focused on maximizing monthly income, it may be wise to explore more balanced markets.
The Sweet Spot: Middle-Tier School Districts
6s and 7s on GreatSchools.com Might Be the Hidden Gem
Not every profitable rental needs to sit in a district with a perfect school rating. In fact, middle-tier school zones, rated 6 or 7 on GreatSchools.com, often deliver the best balance of affordability, rental demand, and return on investment for Columbus landlords.
Why These Districts Work
Districts like Hilliard, Worthington, and Westerville offer a sweet spot:
- Home prices are $100K–$300K lower than elite districts like New Albany or Upper Arlington.
- Families still want to live there because the schools have solid reputations and consistent performance.
- These areas attract tenants who are budget-conscious but still value education and neighborhood stability.
Stronger Cash Flow Potential
Lower acquisition costs mean:
- Lower down payments
- Smaller monthly mortgage payments
- Higher likelihood of achieving positive monthly cash flow
Meanwhile, rents remain competitive, especially with families who prioritize schools but can’t afford the most exclusive neighborhoods.
Tenant Profile in These Districts
- Often dual-income households or middle-class families with 1–2 kids.
- They’re not shopping for luxury, but they are seeking safe, reputable school zones.
- These tenants are usually stable, reliable, and stay long-term, often until their children graduate.
What to Look For as an Investor
When analyzing middle-tier school districts in Columbus:
- Prioritize schools rated 6–7 on GreatSchools.com
- Look for neighborhoods with quick access to major employers or growing economic hubs (Intel, Amazon, OSU medical centers)
- Watch for revitalization efforts that may lift both neighborhood quality and school performance over time
Investor Takeaway
These school districts offer balanced returns:
- Appreciation without the upfront premium
- Consistent rental demand
- Tenants who value stability and school continuity
If you’re a first-time investor or small portfolio owner looking for scalable, cash-positive investments, this might be your best starting point in the Columbus market.
Gentrification, Charter Schools & the Silicon Heartland
What Happens When School Ratings Don’t Match Neighborhood Growth?
Not all high-potential investment areas in Columbus have strong school ratings, at least not yet. In fact, some of the fastest-growing neighborhoods are rated below average on GreatSchools.com. So why are savvy investors still buying there?
Gentrification Hotspots
Neighborhoods like:
- Franklinton
- Milo-Grogan
- Linden
…are seeing rapid transformation. Once overlooked, these areas are now targets for development due to:
- Proximity to downtown
- Affordable real estate
- Public and private investment
As new housing, retail, and public amenities emerge, property values are rising fast, even if the local schools haven’t caught up yet.
The School Workaround
Tenants in these neighborhoods are often:
- Young professionals
- Parents using charter schools or private education
- Families waiting for local schools to improve
Public school ratings matter less when:
- Tenants have alternatives (and many do)
- The rental property itself is in a desirable, walkable, or up-and-coming location
The Silicon Heartland Effect
Columbus is on the national map thanks to major investments from Intel and other tech giants. This “Silicon Heartland” movement is driving:
- New jobs
- Increased housing demand
- A wave of new residents
As employment centers grow, neighborhoods nearby experience accelerated appreciation, often before schools improve.
Investor Takeaway
If you’re playing the long game, these areas offer:
- Lower entry prices
- Strong appreciation potential
- A chance to get in before school ratings rise
In short, these are “buy now, benefit later” zones. Don’t write off a low school rating if the neighborhood is seeing clear signs of revitalization and population growth.
School District ROI: Know What Metrics to Ignore
When the 1% Rule Doesn’t Work, And That’s OK
Real estate investors love formulas, the 1% rule, gross rent multiplier, cap rates, but in top-tier school districts, these classic metrics often fall flat.
Why the Math Breaks Down
Let’s say you find a home in Upper Arlington for $800,000. To meet the 1% rule, you’d need to collect $8,000/month in rent. But market rents in that area top out around $3,500–$4,000, even for a premium property.
So, by traditional standards, that’s a “bad deal.”
But here’s what those formulas don’t tell you:
- That home may appreciate 2–3x faster than one in a less desirable district.
- You’ll likely have lower turnover and vacancy costs.
- The tenant pool is more stable, with less eviction risk.
What Smart Investors Look At Instead
- Total return over time, not just immediate cash flow.
- Tenant retention rates and lease renewal history.
- Long-term appreciation and market resilience.
- Property tax predictability and school funding structures.
At RL Property Management, we help clients model the real ROI, factoring in:
- Operating costs
- Appreciation trends
- Vacancy history
- Market-specific risks and opportunities
Sometimes “Breaking Even” is Winning
If your property:
- Holds its value during downturns
- Gains equity over time
- Requires minimal maintenance due to long-term tenants…
…it might still outperform a high-cash-flow property that churns through tenants every year.
Investor Insight: Don’t dismiss a deal because it doesn’t meet an old rule of thumb. In Columbus’s best districts, peace of mind, stability, and long-term value may be the better play.
Ready to Invest? Here’s How to Decide
3 Paths Columbus Investors Can Take Based on Budget & Goals
There’s no one-size-fits-all approach to investing near good schools in Columbus. The right move depends on your financial goals, timeline, and risk tolerance. Here are three proven strategies:
Path A: Appreciation-First Strategy
- Ideal for: High-net-worth investors with a long investment horizon
- Where to invest: New Albany, Olentangy, Upper Arlington
- Why it works: These districts attract high-quality tenants, and homes appreciate rapidly.
- Expected ROI: Strong long-term gains, but weak to neutral monthly cash flow
Best if you’re willing to sacrifice short-term income for long-term equity growth
Path B: Balanced Investment Strategy
- Ideal for: Small portfolio owners and first-time landlords
- Where to invest: Hilliard, Worthington, Westerville
- Why it works: These districts balance affordability with solid school ratings and stable tenants.
- Expected ROI: Moderate cash flow and appreciation, with strong tenant retention
Best for landlords who want steady income and predictable performance
Path C: Growth Market Strategy
- Ideal for: Visionary investors with patience and a higher risk tolerance
- Where to invest: Linden, Franklinton, Milo-Grogan
- Why it works: These areas are rising fast thanks to revitalization and tech-driven job growth.
- Expected ROI: Limited cash flow today, significant appreciation potential tomorrow
Best if you’re playing the long game and want to get in before prices (and schools) catch up
Bonus Insight: RL Property Management offers custom market analysis to help you choose the right path based on your goals.
Take the Next Step With Confidence
Let RLPM Help You Match the Right School District to Your Investment Goals
School quality plays a major role in Columbus real estate investing, but it’s not the only metric that matters. Whether you’re looking for dependable tenants, long-term appreciation, or a mix of both, your investment strategy should align with the right school district and neighborhood.
If you need help finding the right school district for your investment goals, schedule a consultation with our team today.