Top 5 rental markets landlords can’t ignore right now
Top 5 rental markets landlords can’t ignore right now
San Francisco, New York City, and Chicago — while landlords in these cities can rely on a steady stream of renters, high real estate prices and strict local legislation make it challenging to find a foothold. Plus, the current housing market has made to many people who would otherwise rent.
Don’t worry, though. There are still numerous opportunities to purchase income-generating properties in other rental markets across the nation. You just need the right eye and a keen understanding of how to .
Here, explores five of the best rental markets that landlords should have on their radar. While these locations may not be in your area or even in your state, the right software can help you manage properties effectively, regardless of your location.
How The Top Markets Were Analyzed
When it comes to rental real estate, you’ll need to crunch some numbers before pulling the trigger on your next investment. Above all, you want to ensure that you receive a decent return, which means selecting a property in a profitable location with an ample supply of renters.
There’s more to it than just that, though. Finding a great deal is a good starting point, but you’ll need to consider some factors that indicate longevity in the market you ultimately decide to invest in. When creating this list, TurboTenant took into account the following factors.
Affordability
Affordability speaks for itself. You can only afford to purchase so much real estate. So, take a look at housing costs in specific areas to determine which places offer the most bang for your buck.
You don’t want to pick a property that’s incredibly inexpensive because nobody lives there, but you also don’t want to pick a spot where you won’t be able to charge enough rent to cover the mortgage and expenses.
Price-to-Rent Ratio
Even if you buy a unit on the cheap, there’s no guarantee you can get your money back unless you know the going rate for rent. To calculate the rent-to-price ratio, multiply the median by 12 and divide the median home price by that number. Generally speaking, the lower the rent-to-price ratio, the better.
- Low Ratios (usually below 15): Ratios 15 and below indicate that buying a property may be more cost-effective than renting. Finding a property with a ratio below 15 in an area experiencing population and job growth could set you up for future success.
- Mid-Range Ratios (15-21): In the mid-range, these numbers indicate more balanced markets. Finding a lower-priced property and putting some work into it could result in a great opportunity.
- High Ratios (Over 21): In these markets, their higher ratios suggest that it’s cheaper to rent, though there could be a greater opportunity for property appreciation.
After you’ve zeroed in on a property, use a to get a good idea of the rent you can charge, which takes into account nearby comps, to paint a more complete picture.
Appreciation
Appreciation refers to the increase in an investment’s value over time. Most real estate investments experience some form of appreciation, but it’s essential to pay close attention to the growth rates of the local market.
If the market experiences consistent growth, with the potential for further expansion driven by local economic conditions or population increases, it will likely present a favorable investment opportunity.
Job Market
It’s essential to select a rental property in an area with a robust job market, as tenants will require stable employment to afford the rent. Pick an area with a diverse range of jobs and plenty of available positions.
Population Growth
The number of people in a given area can fluctuate over time, but it is best to focus on markets where the population is generally on the rise. With an increase in residents, a corresponding increase in housing demand is expected, which may lead to higher asking rents.
Cash Flow
As an investor, determining your is essential. To find this figure, subtract your operating expenses, such as maintenance costs or a mortgage, from the rental property’s income. You can only take home the profits after you pay your expenses, after all.
Unemployment
When researching job prospects and population in a specific area, be sure to consider the local unemployment rate. A high unemployment rate means tenants may struggle to afford rent. In contrast, a low unemployment rate indicates a strong local economy and a large pool of potential tenants who can make their monthly payments.
Landlord-Friendly Laws
Certain states, cities, and counties tend to be more than others, which lean more towards protecting tenants’ rights. Read up on local to understand the eviction process, security deposits, rent control, tenant screening, property access, and late fees and penalties, since strict or complex laws can hamper rental property operations.
Vacancy Rate
If a rental market has a high , stay away. People may not want to live here, or they can’t afford to. You don’t want to join the ranks of landlords trying to fill empty units.
Property Taxes and Insurance Costs
The costs of and insurance can significantly impact your bottom line as a landlord. While property tax rates vary widely from place to place, certain areas, such as coastal cities, tend to have higher property insurance costs because of a greater potential for claims.
City Investments
Investments in city improvement are a good sign for potential landlords. Any ongoing projects to revitalize downtown areas and bolster local industries indicate a strong economy. New attractions and investments in the job market will attract new residents.
Neighborhood Appeal and Quality of Life
Most people will want to rent near or in a city with amenities such as high-quality school districts, tourist attractions, and other recreational opportunities. Beyond crunching the numbers, make sure to factor in the residents’ quality of life to determine whether a particular market will entice renters to move into the property.
Top Rental Markets for Landlords to Invest In
With these metrics in mind, it’s time to examine the rental markets that landlords should closely monitor. These five locations offer the potential for stable rental income and solid cash flow with few legal headaches to worry about.
Cincinnati, Ohio
With a of $277,000, housing in Cincinnati is notably affordable, particularly for a diverse with numerous outdoor activities. In terms of rent prices, the is $1,495, which translates to a decent rent-to-price ratio of 15.4.
While the 2.38% in Cincinnati’s Hamilton County are above the national median of 1.02%, the potential for cash flow will likely offset these costs. Cincinnati also has a of less than 8%, and a 2020 report from the Greater Cincinnati Foundation projects that will happen at a rate of 6.2% between 2018 and 2028.
As for landlord-tenant laws, Ohio has comparatively few restrictions. The requires a notice of three to 30 days, and there are no limits on rent or . Last but not least, there are plenty of on the horizon in Cincinnati, including an upgraded and multiple mixed-use developments.
Denton, Texas
Located in the famously of Texas, Denton is a of the Dallas-Fort Worth area that’s packed with different , including museums and the nearby Lewisville Lake. It’s also home to the University of North Texas campus, which attracts many college students to the area.
in Denton County is modest but steady, increasing by 0.7% between the first quarter of 2024 and the first quarter of 2025. The county’s is also low, at 4.2%. Its location within the bustling Dallas-Fort Worth Metroplex is the primary driver of job prospects, however.
Additionally, Denton is also a in sustainability. It’s the only city in Texas to operate on 100% renewable energy. Several other are underway, including an upgrade to the and the construction of two new .
There are some downsides, though. Denton’s price is $375,000, and is $1,438, resulting in a rent-to-price ratio of 21.7. The city of Denton also at a rate of $2.29 per $100 of assessed value, which can add up quickly. However, you can still find affordable homes with a bit of detective work.
Des Moines, Iowa
In the heart of the Midwest, Des Moines presents an attractive rental investment option for landlords just starting out or seeking an affordable place to invest. The here is just $219,000, and the is $950, up 4.5% month-over-month, which puts the rent-to-price ratio at 19.2.
Then, are at roughly 7.3%, typically hover around 4%, and Des Moines’ population is on the rise. Census estimates released in March 2025 indicate that the than 44,000 new residents between 2020 and 2024, representing a growth rate of over 6%.
The state of Iowa is also , with no rent control and a relatively generous limit of two months’ rent for security deposits. Landlords can also initiate the after a brief, 3- to 7-day notice. Additionally, landlords will find lower and here.
In terms of the city itself, Des Moines is home to like the Botanical Gardens and the Pappajohn Sculpture Park. Additional improvements, such as the Waterfront and the aptly named , are forthcoming.
Greenville, South Carolina
Located in the picturesque upstate region of South Carolina, the city of Greenville is experiencing rapid . It’s located near some of the state’s and features a variety of attractions, including , a vibrant , and . More improvements, like and a multimillion-dollar renovation of , are also in progress as of 2025.
Considering Greenville’s desirability, it shouldn’t come as a surprise that real estate prices here are on the higher side, with a median of $463,000. The , meanwhile, is $1,570, providing a rent-to-price ratio of 24.6.
With that said, the city’s median are just 0.88%. Greenville also boasts a robust economy, with an of approximately 4% and available across various , including healthcare, manufacturing, and tourism. Plus, South Carolina has relaxed , with a streamlined eviction process, no limits on security deposits or late rent fees, and no rent control.
Tucson, Arizona
Although the western U.S. is famous for its , Tucson is an often-overlooked rental market for landlords looking to establish a foothold. are low here, at less than 0.8%, and the clocks in at $312,000. is $1,059, resulting in a rent-to-price ratio of 24.5.
Perhaps Arizona’s greatest advantage is its , which prohibit rent control statewide and allow for a five-day eviction process due to nonpayment of rent. The and local economy are also on the rise here, with many new residents moving to the city in search of opportunities.
Tucson also boasts a range of highly rated as well as like the San Xavier del Bac Mission, the Gaslight Theater, and nearby Saguaro National Park. Improvements are also underway at many of Tucson’s city parks, like the new and .
Why Out-of-State Investing Shouldn’t Scare Landlords
Though you’ll have to do your due diligence before making a purchase, these five markets are expected to offer a solid return on investment for landlords. However, there’s a good chance you don’t currently live in or near one of these rental markets.
Don’t be intimidated by the prospect of renting a property remotely! Research local forums, run the numbers, and consult to ensure that your rental property purchase will yield a profitable return in the long run.
After all that research is out of the way, you can use to manage your rental properties from afar. Several companies offer programs to help landlords expand their portfolios and manage properties, regardless of location.
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