Grand Rapids is one of the nation's hottest rental markets

For landlords and real estate investors, Grand Rapids is the second best rental market in the Midwest and one of the hottest markets in the U.S., according a study of 75 real estate markets by All Property Management (APM).

"Grand Rapids is hardly the most glamorous Midwestern metropolitan area, but it deserves plenty of recognition for being the second most attractive market in the Midwestern U.S. for rental real estate investment and 18th most attractive in the U.S. as a whole," the study said.

APM gave Grand Rapids its high ranking "primarily due to its exceptional 6.65 percent year-over-year property value increase, which was about 31 percent greater than the national average during that period."

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"Grand Rapids also experienced a shockingly-low vacancy rate of 2.50 percent in Q2 2015, which was the fourth-lowest vacancy rate in the country during that period," said APM, which bills itself as the nation's largest online network of property management companies.

Rental rates dipped slightly in the past year, making it the 71st worst market for rental increases.

"Grand Rapids is hardly the most glamorous Midwestern metropolitan area, but it deserves plenty of recognition..." "However, other relevant real estate statistics show that investing in Grand Rapids rental properties is anything but a bad idea," the study concluded.

The study also gave the Grand Rapids market high marks for its turnover rate and the region's strong annual job growth rate of 1.97 percent.

Eighteen months ago, APM ranked Grand Rapids as the best rental market in the nation. Since then, several developers have been building or announced plans to build apartments in West Michigan, especially near the downtown area.