Dollar stores remain a popular real estate investment among investors looking for higher returns on their money.

But they may draw more investor interest now that the Federal Reserve has cut the federal funds rate and may cut it again this year, according to the latest report from the Wilmette, Illinois-based Boulder Group. Using debt to buy a property becomes increasingly appealing the more a property's annual yield, or capitalization rate, exceeds a loan’s interest rate.

“Financing becomes more attractive for this asset class,” the real estate firm’s report notes.

Cap rates tend to run higher with dollar stores than the average for all retail single-tenant, net-lease properties. With these types of leases, the tenant pays most of the operating expenses on the property.