If you’re a foreign investor eyeing the US real estate market in 2025, this guide is for you. With the dollar stable, US rental demand growing, and key cities offering landlord-friendly regulations and high yields, now is a prime time to explore income-generating opportunities across the US.
Whether you’re looking for vacation rental hotspots or long-term cash-flowing markets, the US offers a diverse landscape that fits different goals and budgets, even for international buyers.
As a real estate agent with over a decade of experience advising both domestic and international clients, I’ve combined fresh market data, on-the-ground insights, and practical tips to help you choose the right market wherever you’re investing.
From global tourist magnets like Orlando and Miami to high-return, lower-cost markets like Cleveland and Indianapolis, this list spotlights 10 of the best US cities where foreign nationals can confidently invest in rental property in 2025. Let’s dive into the 10 best cities in the US for foreign real estate investors in 2025.
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Best US Cities for Short-Term Rental (STR) Investment
When it comes to short-term rental investing, not all markets are created equal, especially for foreign investors. The right market can offer high nightly rates, year-round demand, and investor-friendly regulations, making STRs one of the most lucrative passive income strategies available in the US real estate market.
The key? Choose cities where tourism, business travel, or seasonal events drive consistent bookings and where local laws allow short-term rentals.
Whether you plan to self-manage or hire a local property manager, the following STR markets offer the highest potential returns, solid appreciation, and strong occupancy rates.
1. Orlando, Florida: Theme Park Capital of the World
Why It’s a Smart STR Investment: Orlando is the undisputed king of vacation rentals in the US, and for good reason. With over 70 million annual visitors, its tourism ecosystem is unmatched. Walt Disney World, Universal Studios, and SeaWorld attract global foot traffic throughout the year, resulting in consistent and lucrative demand for short-term rentals.
For Foreign Investors: Florida has no state income tax, resulting in greater net returns, particularly for non-US residents. Orlando’s suburbs, particularly Kissimmee, Davenport, and Clermont, have zoning laws that are very STR-friendly and are packed with resort-style communities explicitly built for vacation renters.
Expert Insight: “Target properties within gated communities that offer amenities such as lazy rivers, water parks, or shuttle services to Disney. These ‘resort homes’ command premium nightly rates and remain booked even during off-peak months.”
Why It’s Turnkey-Friendly: The Orlando market is mature and well-established, with numerous vacation rental management companies catering to absentee owners, making it an ideal choice for international investors seeking hands-off income.
- Median Home Price: $388,333
- Annual STR Revenue: $44,651.16
- Rental Yield: 11.5%
2. Scottsdale, Arizona: A Desert Getaway for Luxury Travelers and Snowbirds
Why Investors Love It: Scottsdale blends luxury with natural beauty. It’s a magnet for high-spending travelers, especially snowbirds from Canada, retirees, and event attendees. With top-tier events like the Waste Management Phoenix Open, Barrett-Jackson Auto Auction, and MLB spring training, this market stays hot during the peak winter season.
What This Means for STRs: Properties can earn $350+ per night during the event season, with luxury homes often grossing six figures annually. Demand is strongest for properties with desert-chic architecture, pools, fire pits, and entertainment spaces.
For Foreign Investors: Arizona’s STR laws are relatively favorable outside HOA-heavy areas, and large homes here are often fully furnished and turnkey-ready. This reduces friction for non-resident buyers who want immediate income.
Ideal Investor Strategy: Think upscale. A stylish 4–5 BR home with a pool and scenic views is likely to outperform Scottsdale’s luxury-heavy market. Aim for aesthetics that appeal to Instagram-savvy guests.
- Median Home Price: $855,417
- Annual STR Revenue: $79,560.72
- Rental Yield: 9.3%
3. Gatlinburg & Pigeon Forge, Tennessee: Gateway to the Great Smoky Mountains
Why It’s a Top Performer: The Smokies are one of the most visited national parks in the US, and these two towns are tourism hubs. Travelers come for cozy mountain cabins, family-friendly attractions, and nature getaways. Unlike beach markets, demand here is in all four seasons due to foliage, winter snow, spring hiking, and summer road trips.
What’s In Store for Investors: STRs here are not apartments or condos; they’re style cabins purpose-built for vacation rentals. These cabins are designed for optimal cash flow, with hot tubs, game rooms, and views that guests rave about.
For International Buyers: Sevier County is STR-permissive and supports tourism-driven property ownership. The cabin market is so well-established that turnkey property managers are abundant, many offering full-service solutions for out-of-state or foreign owners.
Expert Insight: “Look for 2– to 4-bedroom cabins with mountain views and luxurious touches. These are sweet spots for both occupancy and nightly rates, often grossing $70,000–$100,000 annually.”
- Median Home Price: $639,767 & $573,300
- Annual STR Revenue: $67,437.9 & $64,173.24
- Rental Yield: 10.54% and 11.19%
4. Miami, Florida: Sun, Sand, and International Glamour
Why Miami Is Still Hot: As a global hub, Miami attracts tourists, digital nomads, and international business travelers year-round. Events like Art Basel, the Miami Boat Show, and spring break fuel STR demand beyond just beachgoers. The appeal is global, making Miami an especially strategic buy for foreign investors.
What Investors Need to Know: Zoning Can Be Tricky. Not all areas or buildings allow short-term rentals, especially in traditional residential areas. However, condos in places like Brickell, Downtown, and Miami Beach often come pre-approved for STR.
For Foreign Investors: Miami’s familiarity with international ownership, combined with Florida’s tax-friendly policies, makes it a seamless choice for foreign investors. Many foreign buyers already own STR units here, often in condo hotels or licensed buildings that offer on-site management.
Tip for High ROI: Invest in buildings with STR licenses already in place. Look for water views, modern finishes, and walkability to nightlife or the beach. Licensed STR condos in high-demand zones remain resilient even in low seasons.
- Median Condo Price: $593,917
- Annual STR Revenue: $51,891.84
- Rental Yield: 8.74%
5. San Diego, California: Southern California’s Year-Round Escape
Why San Diego Makes the Cut (Despite California Regs): California’s STR laws are often strict, but San Diego has carved out a balanced and predictable regulatory path. It allows for both hosted and non-hosted STRs in specific zones, creating a more stable investment environment.
Investor Benefits: San Diego boasts year-round tourism, driven by its beaches, convention center, family attractions (such as the San Diego Zoo), and pleasant weather. Additionally, it serves as a hub for medical tourism, remote workers, and short-term renters, offering a multifaceted use case for investors.
Best Property Types: Coastal cottages in Pacific Beach, townhomes in Mission Beach, and modern condos in Downtown are top performers. Homes in this area often command high nightly rates, especially during the summer and holiday periods.
For Foreign Buyers: With high ADRs and low vacancy risk, San Diego’s strong mid- and short-term rental market appeals to investors who want flexibility. Many local STR managers also offer hybrid (STR + mid-term) models, which are ideal for international owners seeking diversified rental streams. Consider investing in a property that meets both 30+ day and STR regulations to pivot if local laws change.
- Median Home Price: $959,833
- Annual STR Revenue: $76,060.44
- Rental Yield: 7.93%
Best US Cities for Long-Term Rental (LTR) Investment
While short-term rentals can deliver high returns, long-term rentals remain the gold standard for steady cash flow, especially for foreign investors seeking minimal involvement and consistent income.
The right LTR market combines:
- Affordable entry prices
- Strong job and population growth
- High rental demand
- Landlord-friendly laws
Here are the top US cities for foreign investors looking to build long-term wealth through stable, low-maintenance rental properties.
6. Dallas–Fort Worth, Texas: America’s Hottest Growth Corridor
Why It’s a Prime LTR Market: The Dallas–Fort Worth metroplex (DFW) is a thriving hub driven by economic diversity, encompassing sectors such as technology, logistics, healthcare, and aerospace. Major corporations, such as Toyota, Charles Schwab, and AT&T, have relocated or expanded here, fueling significant job and population growth.
Investor Advantage: Texas has no state income tax, favorable eviction laws, and landlord-friendly regulations, making the DFW region one of the most investor-supportive in the US. With steady demand and high rent-to-price ratios, it’s a classic buy-and-hold success story.
For Foreign Investors: DFW offers a reliable entry point for foreign nationals, with many turnkey and property management firms tailored to absentee landlords. Submarkets like Arlington, Fort Worth, and Mesquite offer affordable homes with solid appreciation potential and rents exceeding $2,000 per month.
Expert Insight: “Avoid luxury flips and focus on workforce housing (3BR single-family homes in Class B/C neighborhoods). These properties attract long-term tenants with stable jobs, reducing turnover risk.”
- Median Home Price: $389,967
- Average Monthly Rent: $2082.50
- Gross Yield: 6.41%
7. Charlotte, North Carolina: Banking Hub Meets Southern Charm
Why Charlotte Stands Out: Charlotte is home to major financial institutions, including Bank of America and Trust, as well as a growing fintech and energy sector. Its clean, urban infrastructure and high quality of life make it a magnet for professionals, families, and relocators from the Northeast.
Investor Takeaways: Charlotte has one of the strongest rent-to-price ratios among Tier 1 cities. Demand for long-term rentals is strong across both urban cores and suburban pockets, with rents appreciating steadily.
Foreign Investor Edge: North Carolina laws support landlords, and property taxes are relatively low. Neighborhoods like University City, Steele Creek, and West Charlotte offer high rental yields and consistent appreciation.
Ideal Investment Strategy: Focus on up-and-coming suburban neighborhoods with access to public transportation and quality schools. These areas are experiencing strong rent growth and tenant stability, making them ideal for investors seeking predictability.
- Median Home Price: $407,500
- Average Monthly Rent: $2,029
- Gross Yield: 6%
8. Indianapolis, Indiana: The Midwest’s Turnkey Capital
Why Indianapolis Is a Cash Flow Favorite: Indianapolis offers one of the lowest entry prices for long-term rentals in the US, yet it commands respectable rents. It’s ideal for investors focused on immediate cash flow rather than speculative appreciation.
What Makes It Investor-Friendly: Indiana is a landlord-friendly state with fast eviction timelines and little red tape. The city’s stable economy is anchored in logistics (FedEx), healthcare, and higher education, ensuring a steady tenant base.
Foreign Investor Perks: Indianapolis has a massive turnkey ecosystem. Foreign investors can buy rehabbed, tenant-occupied properties with property management already in place, meaning no on-the-ground presence is needed.
Expert Insight: “Stick with single-family homes in B-class neighborhoods. Many international investors purchase portfolios here due to their affordability (under $ 300,000 per property) and the positive monthly cash flow from day one.”
- Median Home Price: $234,550
- Average Monthly Rent: $1,543
- Gross Yield: 7.90%
9. Atlanta, Georgia: The Southeast’s Economic Engine
Why It’s a Long-Term Gem: Atlanta is one of the fastest-growing metros in the US, with new residents arriving daily due to job opportunities, affordability, and a thriving culture. Major companies, such as Google, Microsoft, and Rivian, are establishing hubs here, which supports long-term rental demand.
Investor Snapshot: Home prices remain relatively affordable compared to rent levels, especially in suburbs and emerging in-town neighborhoods like East Atlanta, West End, and Decatur. The rent-to-price ratio in these areas continues to favor landlords.
Why Foreign Buyers Love It: Georgia’s eviction process is quick and predictable, making it a stress-free market for absentee owners. Atlanta’s housing stock is diverse, ranging from small starter homes to multi-family units, offering a variety of investment strategies.
Ideal Investor Strategy: Consider investing just outside the city limits to maximize your yield. Suburban markets are experiencing rapid growth, and many tenants prefer the balance of space and city access, making them ideal for long-term, family-oriented leases.
- Median Home Price: $419,500
- Average Monthly Rent: $2,039
- Gross Yield: 6%
10. Cleveland, Ohio: The Midwest’s Underrated Cash Flow Market
Why Cleveland Is a Hidden Powerhouse: Don’t let the Rust Belt reputation fool you! Cleveland offers some of the best rental yields in the country. Its housing is incredibly affordable, yet demand remains stable thanks to the presence of major hospitals, universities, and blue-collar industries.
Investor Advantage: It’s possible to secure properties under $160K that rent for $1,200–$1,400/month, translating to gross yields of 8–10%, a rare feat in today’s market. That’s why it’s a top choice for buy-and-hold investors focused on cash flow.
Foreign Investor Benefits: The city is well known among turnkey providers, many of whom cater directly to international clients. These firms offer fully renovated, tenant-occupied homes with local property management, eliminating the need for physical involvement.
Where to Focus: B-class neighborhoods, such as Old Brooklyn, Parma, and South Collinwood, offer tenant stability and fewer maintenance issues compared to high-turnover areas. Cleveland may not offer rapid appreciation, but the predictability and cash flow make it an ideal “anchor” market for any passive investor portfolio.
- Median Home Price: $109,167
- Average Monthly Rent: $1,200
- Gross Yield: 13.19%
Make Your Foreign US Real Estate Investment a Success with HomeAbroad
The US real estate market remains one of the most dynamic and rewarding landscapes for global investors. Whether you’re eyeing high-yield short-term rentals in vibrant tourist cities or seeking stable, long-term rental income in fast-growing metros, there are strategic opportunities across the country tailored to your goals and risk profile.
For international buyers, however, navigating the US market can feel complex, from securing financing without a US credit history to finding trusted local agents and managing regulatory requirements.
That’s where HomeAbroad comes in, your trusted partner in US real estate investment.
HomeAbroad is a one-stop PropTech and FinTech platform purpose-built to simplify the US property investment journey for international buyers and global investors. Here’s how HomeAbroad empowers foreign nationals to invest confidently:
- Tailored Foreign National Mortgages: Get financing without a US credit history through mortgage solutions designed specifically for international buyers.
- AI-Powered Property Search: Discover investment properties aligned with your financial goals using innovative, personalized tools.
- 500+ Trusted US Real Estate Agents: Gain local market insights and personal guidance from agents who understand the unique needs of international clients.
- Full-Service Concierge Support: From start to finish, HomeAbroad streamlines every step of the process, including:
- Establishing an LLC for property ownership
- Opening US bank accounts
- Securing homeowners insurance
- Coordinating property management
- And providing ongoing post-purchase support.
Ready to start your US real estate investment journey? Explore smarter with HomeAbroad.
FAQs
Can foreign nationals buy property in the US?
Yes, there are no citizenship restrictions for purchasing US real estate. International buyers and foreign investors can purchase residential and commercial real estate in the US without restrictions.
Are short-term rentals legal everywhere in Tennessee?
Whether you’re looking to generate consistent cash flow, diversify globally, or build long-term wealth, the US real estate market is highly profitable, and HomeAbroad is here to help you make the most of it. With HomeAbroad, international investors don’t just buy a property; they unlock a more innovative, faster, and safer way to invest in US real estate.
Can I manage the foreign investment property remotely?
Yes, absolutely. With HomeAbroad, you can seamlessly coordinate and manage remote ownership of your foreign investments even if you are not in the US.
At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
Zillow: 2024 US Cities, Median Purchase Price and Median Monthly Rent
Airdna: US Cities, Vacation Rental Data
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