Best Places to Buy Rental Property
Choosing the right location for rental property investment is arguably more important than choosing the right property. A strong market lifts all properties through growing demand, rising rents, and appreciating values. A weak market drags even the best properties down. This guide ranks the best places to buy rental property in 2026 based on the metrics that matter most to landlords.
Our ranking methodology
We evaluate markets on five weighted factors: rent-to-price ratio (30%), population growth (20%), job growth (20%), landlord-friendliness (15%), and insurance/tax burden (15%). Markets must have a minimum population of 200,000 to qualify.
Top 15 rental markets for 2026
| # | Market | Median Price | Avg Rent | Cap Rate | Score |
|---|---|---|---|---|---|
| 1 | Indianapolis, IN | $175,000 | $1,450 | 7.8% | 92 |
| 2 | Memphis, TN | $145,000 | $1,300 | 8.5% | 90 |
| 3 | Birmingham, AL | $140,000 | $1,200 | 8.2% | 88 |
| 4 | Kansas City, MO | $185,000 | $1,500 | 7.5% | 87 |
| 5 | Cleveland, OH | $120,000 | $1,100 | 9.0% | 85 |
| 6 | Columbus, OH | $200,000 | $1,550 | 7.2% | 84 |
| 7 | Jacksonville, FL | $250,000 | $1,700 | 6.5% | 83 |
| 8 | San Antonio, TX | $230,000 | $1,600 | 6.2% | 82 |
| 9 | Charlotte, NC | $275,000 | $1,800 | 5.8% | 81 |
| 10 | Tampa, FL | $280,000 | $1,850 | 5.6% | 80 |
| 11 | Little Rock, AR | $145,000 | $1,200 | 7.8% | 79 |
| 12 | Louisville, KY | $175,000 | $1,350 | 7.0% | 78 |
| 13 | Atlanta, GA | $285,000 | $1,800 | 5.5% | 77 |
| 14 | Huntsville, AL | $230,000 | $1,500 | 6.0% | 76 |
| 15 | Tulsa, OK | $155,000 | $1,200 | 7.2% | 75 |
For detailed analysis of any of these markets, use our market analysis framework. For state-level insights, see best states and best rental markets.
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