Classes of areas

[NA NA]

There are lots of discussion about having properties in different class area with different quality of tenants

How to determine which class does a area belong to or the definitions are more subjective to investor?

[J. Martin]

@NA NA is right for many areas. I think you're getting at what the tenants are like in these areas, but I think there is also a lot of overlap with age of house, where lower-quality tenants tend to end up in older houses in some places of the US as the next suburb out gets built.. I'm referring to residential here. Commercial will also typically have a lot more to do with the age/amenities of building..

One way I've heard it loosely described is something like (with a little flavor from me..)

Class A: Great tenants. Solid jobs. Few headaches. Little Crime. Happy to have them over for dinner! (and date your daughter?..)
Class B: Generally good tenant pool. Generally good jobs. Some hiccups here and there, but maybe wouldn't mind having them as a neighbor in an average area.. Some crime.
Class C: Lower-income tenant pool. Spottier job histories and lower pay. Lower credit profile. Deal with some headaches. Wouldn't want to live next to them, and maybe don't even want to go out to collect rent. Expect some rent losses, occasional eviction, more vacancy..
Class D: Yikes! War zone! But on your boots and hard hat, and get lots of extra cash flow to cover some of the rough patches you might hit. Some people are making money here, but not for the faint of heart. You don't want them anywhere near your daughter, your house, and definitely not for dinner! Expect low quality tenant pool, possible prior evictions, poor credit, and headaches. And get enough cash flow to cover more than all of it, if you're brave enough to go that route! Buyer beware!

Good luck!