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House flipping can be a lucrative business, but especially if you choose the right location.

Joybird, a handcrafted furniture company, analyzed 11 factors in real estate markets across the United States to uncover the best locations to maximize the return on your investment in flipping houses.

The factors used were determined using data from Zillow, Redfin, the U.S. Bureau of Labor Statistics and more. They include:

  • median home price
  • the average price of fixer-upper homes
  • number of fixer-upper homes
  • median days on the market
  • home flipping gross ROI
  • property tax rate
  • average kitchen remodeling cost
  • average bathroom remodeling cost
  • number of real estate agents
  • number of construction managers
  • number of construction laborers

Five out of the top 10 states on Joyride’s final ranking are located in the South, indicating this region of the United States is ideal for home flipping.

The No. 1 best state for flipping houses: Louisiana

Louisiana is the best state for flipping houses. The state scored a 41.1 out of 50 in Joybird’s report.

The average price of fixer-upper homes in Louisiana is $196,763. The state also offers a large construction labor force, the report states.

The flipping gross profit in 2022 was $75,000 and the gross ROI was 55.6%, which equates to a 3% increase since 2021, according to Motley Fool.

One advantage that Louisiana offers those looking to flip homes in the state is a low property tax rate of 0.55%, which is 0.44% lower than the national average of 0.99%.

Louisiana is the best U.S. state for flipping houses, according to Joybird.

Image By Erik Pronske Photography | Moment | Getty Images

Top 10 best U.S. states for flipping houses

  1. Louisiana
  2. Michigan
  3. Alabama
  4. Delaware
  5. Ohio
  6. Pennsylvania
  7. Maryland
  8. Mississippi and Virginia (tie)
  9. Mississippi and Virginia (tie)
  10. Florida

Michigan is the second-best state for flipping homes, scoring 38.3 out of 50.

According to a Motley Fool report, the 2022 flipping gross profit in Michigan was $58,247 and the gross ROI was 51.70%.

The average Michigan home value is $235,361, up 2.3% over the past year. The median days on the market was 17 days, up two year over year, Redfin reported.

Alabama ranked in the top 3 best states for flipping houses, according to Joybird.

Westend61 | Westend61 | Getty Images

Alabama is the third-best state for flipping houses, with a score of 37.7 out of 50.

According to Zillow, Alabama’s average home value is $223,246, up 4.6% over the past year.

This is almost half of the national median sales price of an existing U.S. home of $410,200, according to the National Association of Realtors.

In 2021, Montgomery, Alabama, was in the top 10 of the best places to flip homes, according to WalletHub. It also ranked as the city with the No. 1 market potential.

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