I once spoke with an investor who was selecting properties based on rental income in Staten Island. They had heard that neighborhoods with high school scores tend to have better rental demand and had narrowed their options down to areas near top-scoring schools. However, focusing solely on scores can lead to missing important details.

There is a significant difference in elementary school ratings even within Staten Island. PS 35 Clove Valley School has a GreatSchools score of 10, PS 5 Hugo School has a score of 8, PS 3 Margaret Gioiosa School has a score of 7, and PS 1 Tottenville School has a score of 6. On the other side, PS 74 Future Leaders School has a score of 4, while PS 78 and PS 20 Fort Richmond both have scores of 3. This level of variation exists even within the same borough.

There are three main factors to consider. First, the composition of the scores. Test scores, college readiness, and equity are each calculated in comparison to the district average, with different weights at each grade level. Second, the recent trends in ratings. Whether a score has spiked in one year or has been consistently high for several years can change its significance. Third, the student-to-teacher ratio and parent reviews. This factor has both advantages and disadvantages. Schools with high scores have consistent rental demand, but their sale prices and rents are often already high, which can affect yield calculations. In addition to test scores, elementary school ratings also include an Academic Growth metric, which measures how much scores have improved compared to the previous year. Even if a school has a low absolute score, if it shows a clear growth trend, it may be worth watching for potential future rating increases. For investors looking at long-term rental demand, this trend may be more significant than the current score.

There is no absolute reason to avoid areas near schools with low scores. If a school with a low equity score has shown a trend of rising ratings over the past few years, there may be potential for overall improvement in the area's school district evaluation. Conversely, if a school has a high score but is trending downward, that trend should be monitored. Staten Island has also seen discussions about adjusting school district boundaries in some areas in recent years. Since no one can guarantee that the currently assigned school will remain the same, it's wise to check for any announcements regarding boundary adjustments on the school district's website.

When selecting rental properties, here are the key items to verify:

• Actual assigned school based on property address
• Trends in ratings over the past few years
• Student-to-teacher ratio
• Whether school district boundaries have been adjusted recently

In Staten Island, there are areas where school district boundaries are divided by a single road. There have been cases where contracts were signed based solely on the scores listed on real estate websites, only to find that the actual assigned school was different. Therefore, it is necessary to verify the address directly on the New York City Department of Education website. Property tax rates also vary slightly by area within the borough, so when calculating rental yields, it's advisable to consider both school district scores and property taxes to reassess net income. I have seen several instances where contracts were signed based solely on scores, resulting in actual net income being lower than expected. Areas near schools like PS 35, which has a score of 10, have proven rental demand, leading to shorter vacancy periods, but the purchase price can be high enough that the yield may actually be lower. Conversely, areas near schools with scores in the 4 range may appear favorable for yield calculations due to lower purchase prices, but if their ratings drop further in the future, reselling could become difficult. Ultimately, a good property is not just one with the highest score, but one where the score, price, property tax, and assigned school are all balanced.

This article is not investment or legal advice, and rental income can vary based on market rates and vacancy rates, so risks should be considered. Please consult with a professional before finalizing any contracts.