In a report published on CNN Money News, Phoenix was ranked number 8 on a  list of 10 best cities to purchase rental investments homes. According to the report, Phoenix was the posterchild for the housing bubble, with pricing increasing annually in the double-digits during the boom.

Home prices have fallen 47% since the height of the market in 2007, and foreclosures are on the rise. Many who are losing their homes to foreclosure are forced to rent, which means rental prices are highly competitive.

Market monitors in Phoenix think rent prices will increase $100 a month for the next 3 years. The positive side for investors is that Phoenix’s job market is growing rapidly, as many corporations are looking to move their headquarters to the valley. In addition, the population is steadily growing, increasing nearly 8% since 2008.

Here are some statistics:

Average home price (2011): $155,600
Projected home price (2014): $148,200
Gross rent (2011): $834
Projected gross rent (2014): $936

Experts expect investors to earn 2.3% more on their returns than the national average.

Other cities that made it into CNN Money’s top 10 are:

Las Vegas, NV
Detroit, Mich
Warren, Mich.
Orlando, FL
Bakersfield, CA
Tampa, FL
Ft. Lauderdale, FL
Rochester, NY