25 Best Cities to Buy Rental Property (Cash Flow & Appr’n)
Renting property is an excellent way to make an income, and in some cities, in particular, the rental market is booming.
The best cities to buy rental property have a growing population, increasing rental prices, and high demand for rental properties.
Best Cities to Buy Rental Property
1. Nashville, TN
| Gross rent multiplier | 20.15 |
| Effective property tax | 2.6% |
| Median monthly rent | $2,200 |
| YOY change in monthly rent | +13.5% |
| Median home price | $458,485 |
| YOY change in home prices | +25.4% |
| Population growth rate | +1.26% |
According to PwC, Nashville is one of the markets to watch for overall real estate prospects. The job and population growth are above the national average, which means more and more people are moving to Nashville,
This population growth future-proofs your business because it ensures a steady flow of income from new residents. The best type of property to buy for rental is a small house in an affluent neighborhood that will appeal to families and couples.
2. Raleigh/Durham, NC
| Gross rent multiplier | 21.80 |
| Effective property tax | 0.77% |
| Median monthly rent | $1,900 |
| YOY change in monthly rent | +8.15% |
| Median home price | $451,332 |
| YOY change in home prices | +20.2% |
| Population growth rate | +1.35% |
Raleigh/Durham is another area that’s experiencing population growth, growth in the amount of monthly rent people pay, and exploding into popularity, making it an excellent city to buy rental property.
This area is known for its scholarly institutions, so it’s worth investing in slightly cheaper properties, such as apartments to attract students and recent graduates.
The booming job market will make it popular with young professionals, so invest in property to appeal to this demographic.
3. Phoenix, AZ
| Gross rent multiplier | 20.75 |
| Effective property tax | 0.60% |
| Median monthly rent | $2,045 |
| YOY change in monthly rent | +2.4% |
| Median home price | $413,234 |
| YOY change in home prices | +11.9% |
| Population growth rate | +1.0% |
According to PwC, Phoenix is part of the ‘super sun belt,’ where markets are large and diverse but still affordable. Phoenix is an excellent city to own rental property because the economic performance of this property market has been consistent between thick and thin.
There’s a diversity of people in Phoenix, including families and young professionals. Depending on which demographic you want to target, you could opt for a more affordable apartment or a family home.
4. Austin, TX
| Gross rent multiplier | 26.10 |
| Effective property tax | 0.31% |
| Median monthly rent | $2,404 |
| YOY change in monthly rent | +16.8% |
| Median home price | $630,677 |
| YOY change in home prices | +7.2% |
| Population growth rate | +1.75% |
Austin is one of Texas’s most popular cities, and it has a diverse population, meaning whatever type of property you invest in is sure to appeal to somebody.
Austin is one of the cities with the biggest increase in single-family rents over the past year, so it’s a great place to buy an investment property.
Austin’s home to a lot of young professionals and young families, so opt for a slick apartment or affordable house.
5. Tampa/St. Petersburg, FL
| Gross rent multiplier | 15.5 |
| Effective property tax | 1.97% |
| Median monthly rent | $2,350 |
| YOY change in monthly rent | +10.6% |
| Median home price | $420,510 |
| YOY change in home prices | +25.4% |
| Population growth rate | +1.26% |
Tampa is home to a booming rental property market, making it one of the best places to buy rental property. The gross rent multiplier is affordable and the year-on-year rental price change is high.
It’s so popular that Netflix created a show about luxury real estate in the area called ‘Selling Tampa.’ Throughout economic turbulence, the demand for property in this area has remained high, so consider opting for an investment property in this rental market.
6. Charlotte, NC
| Gross rent multiplier | 17.80 |
| Effective property tax | 0.77% |
| Median monthly rent | $1,959 |
| YOY change in monthly rent | +5.8% |
| Median home price | $400,662 |
| YOY change in home prices | +20.8% |
| Population growth rate | +1.61% |
Charlotte is a thriving city that enjoys steady migration and experienced an increase in rental prices during COVID-19. The population growth is significant at 1.61%, and the house prices are reasonable, so you’ll be able to get an affordable property to rent out.
This city is also the site of plenty of new constructions, so if you wanted to rent out a newer property, Charlotte would be an excellent location for investment property. Contact property investment firms in the area for more information.
7. Dallas/Fort Worth, TX
| Gross rent multiplier | 18.07 |
| Effective property tax | 1.93% |
| Median monthly rent | $2,045 |
| YOY change in monthly rent | +14.8% |
| Median home price | $328,711 |
| YOY change in home prices | +17.2% |
| Population growth rate | +0.81% |
This city for investment property is thriving and the prices of rental prices are going up.
When the price of rents in an area increases, this is good for your rental business because it means you can raise your prices to bring them in line with similar properties on the market.
Nearly half of the population is under 18, so invest in apartments with a view to rent them to an up-and-coming generation of young professionals.
8. Atlanta 75, GA
| Gross rent multiplier | 16.3 |
| Effective property tax | 0.94% |
| Median monthly rent | $2,204 |
| YOY change in monthly rent | +9% |
| Median home price | $400,541 |
| YOY change in home prices | +13.7% |
| Population growth rate | +1.55% |
Atlanta is one of the fastest-growing markets in the country, so it’s an excellent city to own investment property. Before buying a place for an investment property, take a look at the demographics.
If there are more families, it’s worth renting out family homes, whereas more young professionals points to a need for small houses and apartments.
The population growth rate is huge, so there will be more and more people coming to the area to rent, meaning a better chance of you finding tenants.
9. Seattle, WA
| Gross rent multiplier | 28.65 |
| Effective property tax | 0.93% |
| Median monthly rent | $2,350 |
| YOY change in monthly rent | +9.3% |
| Median home price | $934,925 |
| YOY change in home prices | +7.9% |
| Population growth rate | +1.71% |
Seattle is a buzzing cosmopolitan city with a thriving independent culture scene that attracts people moving from more rural parts of Washington or other US states. The population growth rate stands at 1.71%, which is huge.
This metro area has a significant tech and STEM presence, meaning workers are productive and per capita GDP is high, so there are plenty of affluent people seeking luxury rental properties. This abundance of professionals makes Seattle the perfect city to buy an investment property.
10. Boston, MA
| Gross rent multiplier | 19.50 |
| Effective property tax | 1.67% |
| Median monthly rent | $3,200 |
| YOY change in monthly rent | +14% |
| Median home price | $720,184 |
| YOY change in home prices | +6% |
| Population growth rate | +0.85% |
Thanks to a growing population of more than 0.80% and steadily increasing rental prices, Boston is a great investment property city.
House prices remain high, so if you decide to sell your rental business after a few years, you’ll get a good price for it. This does mean, however, that you’ll need a larger downpayment than you would in other cities.
The year-on-year change in monthly rent is significant, too. If you buy here, there’s a good chance you can increase your prices yearly.
11. Salt Lake City, UT
| Gross rent multiplier | 30.02 |
| Effective property tax | 0.015% |
| Median monthly rent | $1,819 |
| YOY change in monthly rent | +9.9% |
| Median home price | $594,335 |
| YOY change in home prices | +8.5% |
| Population growth rate | +0.66% |
The increase in monthly rent on this rental property city is high, making it one of the best places to own rental property.
Property tax is low, too, meaning you can keep more of your income than in other cities. With a steady increase of year-on-year monthly rent, you’ll likely increase your profits annually.
It’s worth considering that the gross rent multiplier is high here, so it’s advisable to buy in Salt Lake City only if you have a sizeable downpayment.
12. Denver, CO
| Gross rent multiplier | 26.87 |
| Effective property tax | 0.54% |
| Median monthly rent | $2,228 |
| YOY change in monthly rent | +9.8% |
| Median home price | $626,311 |
| YOY change in home prices | +12.3% |
| Population growth rate | +1.59% |
Denver’s population growth rate is pretty impressive, so it’s an awesome city for rental property because you’re guaranteed a continuing market for rental properties.
Property tax is low here compared to other cities, meaning more profits for you, while the year-on-year change in monthly rent is high enough to keep your profits consistent.
Denver is home to plenty of bungalows suitable for families and individuals, so invest in one of these types of properties for the best results.
13. San Diego, CA
| Gross rent multiplier | 25.21 |
| Effective property tax | 1.2% |
| Median monthly rent | $3,375 |
| YOY change in monthly rent | +10.42% |
| Median home price | $950,445 |
| YOY change in home prices | +12.3% |
| Population growth rate | +0.57% |
As with much of California, San Diego is home to plenty of affluent individuals and families, so it’s an excellent place to break into the luxury property rental market.
Although property taxes and house prices are higher here than elsewhere, the year-on-year change in monthly rent is consistently high, making this one of the best place to buy investment property.
The median monthly rent has risen over 10% in the last year, so you’ll be able to consistently raise your prices if you opt for a property here.
14. Washington, DC–Northern VA, WA
| Gross rent multiplier | 14 |
| Effective property tax | 0.92% |
| Median monthly rent | $1,360 |
| YOY change in monthly rent | +8% |
| Median home price | $613,374 |
| YOY change in home prices | +13% |
| Population growth rate | +1.16% |
This area of Washington has a decent gross rent multiplier rate and steadily climbing year-on-year monthly rent prices, so you’ll be able to charge a significant amount to compete with other real estate companies in the area.
The population is significantly growing, too, meaning more potential renters.
House prices are gradually climbing, so if you decide to sell your rental property within a few years, you’ll almost certainly get more than you paid for it.
15. Miami, FL
| Gross rent multiplier | 13.36 |
| Effective property tax | 0.97% |
| Median monthly rent | $3,700 |
| YOY change in monthly rent | +18.9% |
| Median home price | $562,174 |
| YOY change in home prices | +29.4% |
| Population growth rate | +0.96% |
This culturally rich, diverse city has a high median monthly rent, meaning budding rental business owners can charge high prices to keep up with the competition.
This place for rental property is home to a mix of young people and families, so both smaller and larger properties will rent well, depending on your budget.
The population is growing rapidly, too, so you can rest assured that there will be a consistent demand for rental properties.
16. Orange County, CA
| Gross rent multiplier | 15.51 |
| Effective property tax | 0.69% |
| Median monthly rent | $3,200 |
| YOY change in monthly rent | +16.5% |
| Median home price | $1,049,972 |
| YOY change in home prices | +13.4% |
| Population growth rate | +0.55% |
Orange County is one of the most affluent areas in the country, so luxury rental properties are abundant here. If you want to invest in this area, which is home to one of the best rental markets in the U.S., look for properties with high-spec finishes and expensive extras.
If you’re on a strict budget, opt for a smaller space, such as an apartment, just make sure the fittings are modern and it’s decorated well.
17. Inland Empire, CA
| Gross rent multiplier | 18.92 |
| Effective property tax | 0.95% |
| Median monthly rent | $2,595 |
| YOY change in monthly rent | +10.3% |
| Median home price | $623,659 |
| YOY change in home prices | +10.7% |
| Population growth rate | +0.35% |
Inland Empire is an area that covers multiple towns and cities in California – a state which is home to arguably the best market for investment properties.
Inland Empire has become the 12th most populous metro area, so there’s a wide range of families and individuals here, all seeking homes.
The annual increase in monthly rent is high here, so you’re bound to get a decent return on investment. The diversity of ages means you can opt for either a larger house or a smaller apartment, depending on your budget.
18. Orlando, FL
| Gross rent multiplier | 15.96 |
| Effective property tax | 0.83% |
| Median monthly rent | $2,111 |
| YOY change in monthly rent | +5.4% |
| Median home price | $387,298 |
| YOY change in home prices | +25.8% |
| Population growth rate | +2.20% |
Affordable house prices for investors make Orlando an excellent location for rental property. This area attracts plenty of tourists, too, thanks to destinations such as Disney World, so Orlando enjoys a booming economy.
Plus, the population growth rate is huge, with a 2022 growth rate of 2.20%. This impressive statistic shows that more and more people will be coming to the area seeking houses, so there’s never been a better time to buy property in this city.
19. Los Angeles, CA
| Gross rent multiplier | 26.70 |
| Effective property tax | 0.72% |
| Median monthly rent | $3,101 |
| YOY change in monthly rent | +16.3% |
| Median home price | $966,595 |
| YOY change in home prices | +6.1% |
| Population growth rate | +0.27% |
Los Angeles has an impressive annual increase in rent prices, which have shot up by 16.3% in the last year. This makes Los Angeles an ideal market for rental properties.
The area attracts millions of tourists and is home to the technology and entertainment industries, so it’s a magnet for affluent renters, meaning you can invest in luxury properties and rent them out for high prices.
It’s popular with tourists, too, so you could invest in short-term lets for people on vacation.
20. Boise, ID
| Gross rent multiplier | 23.32 |
| Effective property tax | 0.60% |
| Median monthly rent | $1,935 |
| YOY change in monthly rent | -3.35% |
| Median home price | $505,808 |
| YOY change in home prices | -3.9% |
| Population growth rate | +1.26% |
The house prices in Boise are down a little on previous years, so it’s an excellent time to buy property for a reasonable price and rent it out at a significant profit.
The population growth in this area implies there will be more people wanting homes, making this an up-and-coming area for investment property.
There are plenty of families in this area, so opt for houses with multiple bedrooms and bathrooms and space outside, such as a yard.
21. San Antonio, TX
| Gross rent multiplier | 18.93 |
| Effective property tax | 0.55% |
| Median monthly rent | $1,700 |
| YOY change in monthly rent | +8.8% |
| Median home price | $298,951 |
| YOY change in home prices | +16.3% |
| Population growth rate | +0.74% |
San Antonio is one of many cities in Texas that are enjoying a boom in the rental property market.
When it comes to an investment property location, San Antonio is a great choice. With relatively low property taxes, San Antonio is rapidly becoming one of America’s most popular rental markets.
The house prices are still affordable, too, so you can buy a couple of properties for even more income for the price you’d pay for one house in another city.
22. Washington, DC–District, WA
| Gross rent multiplier | 20.49 |
| Effective property tax | 0.56% |
| Median monthly rent | $2,600 |
| YOY change in monthly rent | +13.6% |
| Median home price | $681,691 |
| YOY change in home prices | +1.8% |
| Population growth rate | +1.26% |
Washington DC has a healthy population growth rate, and as the capital city it’s bound to continuously attract newcomers looking for a place to live, as well as tourists who keep the economy booming.
The year-on-year change in monthly rent is also strong, so it’s worth exploring this area for rental property. Thanks to the population of young professionals, luxury apartments are a good investment idea here. You could also consider property for short-term holiday lets.
23. Fort Lauderdale, FL
| Gross rent multiplier | 13.36 |
| Effective property tax | 0.83% |
| Median monthly rent | $3,350 |
| YOY change in monthly rent | +24.3% |
| Median home price | $530,750 |
| YOY change in home prices | +37% |
| Population growth rate | +0.93% |
The rental market is absolutely booming in Fort Lauderdale, making it a smart place to buy a rental property.
The gross rent multiplier is reasonable, and monthly rental prices are increasing by huge numbers, so you can expect a generous return on investment. This area attracts a lot of families, so focus on investing in family homes.
24. Houston, TX
| Gross rent multiplier | 16.27 |
| Effective property tax | 0.58% |
| Median monthly rent | $1,783 |
| YOY change in monthly rent | +11.1% |
| Median home price | $272,639 |
| YOY change in home prices | +15% |
| Population growth rate | +0.88% |
If you’re looking for a rental property location with a diverse community and booming rental market, look no further than Houston. Single-family home sales are declining, but rentals are rising. It’s worth investing in family-sized houses with multiple bedrooms and bathrooms to appeal to this demographic.
The median monthly rent keeps increasing, too, so you’ll enjoy steady profits.
House prices remain relatively cheap, too, so you could buy a couple of investment properties for the price of one in other cities.
25. Las Vegas, NV
| Gross rent multiplier | 20.07 |
| Effective property tax | 0.53% |
| Median monthly rent | $2,050 |
| YOY change in monthly rent | +2.2% |
| Median home price | $433,373 |
| YOY change in home prices | +18.4% |
| Population growth rate | +0.90% |
Known for attracting millions of tourists per year to its popular casinos, Las Vegas is a booming rental market thanks to its low property taxes and successful economy, as well as houses that are more affordable for investors than elsewhere.
Because this area is so attractive to tourists, it’s worth considering investing in a property for short-term and holiday lets instead of long-term rentals. You could turn your property into an Airbnb or something similar.
