Finding an affordable rental property under $300K might seem challenging, but plenty of markets offer great investment opportunities. Whether looking for a short-term rental in a tourist hotspot or a long-term property with a steady cash flow, the correct city can make all the difference.
Many places in the USA still have high rental demand, affordable home prices, and strong returns, making them ideal for investors. Over the years, I’ve researched the best places across the USA where your rental investment can be profitable, finding properties that generate consistent income and long-term value.
Let’s explore the top cities where you can invest in a rental property without breaking the bank!
Table of Contents
Top 11 Places to Buy a Rental Property in the USA Under $300K
Investing in rental properties can be a great way to build long-term wealth, especially in cities with affordable home prices. Whether you’re looking for strong rental demand, high rental yields, or steady appreciation, there are still great markets in the U.S. where you can buy a solid investment property for under $300 K.
Here are 11 cities where you can find affordable rental properties with substantial investment potential:
1. Logan, Ohio
Logan, Ohio, is one of the top short-term rental markets due to its affordability, high rental yield, and strong tourism appeal. Logan draws millions of visitors annually to the Hocking Hills region for its scenic trails, waterfalls, and outdoor adventures. Another advantage of investing is the city’s limited hotel availability, thus making room for active vacation rentals to thrive, maintaining steady occupancy rates and high nightly rental income. The area’s low home prices make it an accessible and profitable investment opportunity.
Key Market Metrics:
- Average Home Value: $237,362
- Average Daily Rate & Occupancy: $379.4 & 54% respectively
- Estimated Rental Yield: 31.08%
- Property Appreciation (5-Year): Approximately 38.5%
Why Invest in Logan, OH?
- Thriving Tourism Industry – Hocking Hills State Park attracts visitors year-round, ensuring consistent rental demand.
- Affordable Investment Market – Lower home prices provide excellent entry points with strong returns.
- High Rental Profitability – Strong occupancy and premium nightly rates drive significant cash flow.
Logan, Ohio, offers a rare combination of affordability and profitability, making it one of the best short-term rental investment cities in 2025. returns, making it one of the best short-term rental investment cities in 2025.
2. Louisville, Kentucky
Louisville, Kentucky, is a top-performing short-term rental market known for its affordability, strong tourism appeal, and high rental returns. Home to the Kentucky Derby, bourbon distilleries, and a thriving cultural scene, the city attracts millions of visitors annually. With steady demand for vacation rentals and relatively low home prices, Louisville offers investors an excellent opportunity for strong cash flow and appreciation potential.
Key Market Metrics:
- Average Home Value: $244,485
- Average Daily Rate & Occupancy: $343.8 & 51% respectively
- Estimated Rental Yield: 25.82%
- Property Appreciation (5-Year): Approximately 32.1%
Why Invest in Louisville, Kentucky?
- Major Tourist Destination – The Kentucky Derby and bourbon industry drive year-round tourism.
- Affordable Property Market – Low home prices create accessible investment opportunities with strong ROI.
- Consistent Short-Term Rental Demand – A growing economy and steady visitor influx support high occupancy rates.
Louisville offers a strong balance of affordability, tourism demand, and profitability, making it a prime short-term rental investment city in 2025.
3. Birmingham, Alabama
Birmingham, Alabama, is an emerging short-term rental hotspot, offering affordable home prices, strong rental yields, and growing tourism demand. Known for its rich history, thriving food scene, and outdoor attractions, the city attracts leisure and business travel visitors. With limited hotel availability in key areas, short-term rentals continue to see high occupancy rates and strong cash flow potential.
Key Market Metrics:
- Average Home Value: $125,944
- Average Daily Rate & Occupancy: $162.3 & 50% respectively
- Estimated Rental Yield: 23.19%
- Property Appreciation (5-Year): Approximately 29.4%
Why Invest in Birmingham, Alabama?
- Affordable Investment Market – Low home prices provide excellent entry points with strong returns.
- Strong Tourism & Business Travel Demand – Attractions, events, and a growing economy fuel year-round rental needs.
- High Rental Profitability – Competitive nightly rates and solid occupancy levels drive strong cash flow.
Birmingham combines affordability, strong rental yields, and consistent demand, making it a top-tier short-term rental investment city for 2025.
4. Myrtle Beach, South Carolina
Myrtle Beach, South Carolina, is a top-tier short-term rental destination, driven by its booming tourism industry, beachfront appeal, and high rental demand. As one of the most popular vacation spots on the East Coast, Myrtle Beach attracts millions of visitors annually for its beaches, golf courses, and entertainment options. The city’s strong tourism sector ensures consistent bookings and high nightly rates, making it a profitable investment opportunity.
Key Market Metrics:
- Average Home Value: $299,167
- Average Daily Rate & Occupancy: $245.8 & 55% respectively
- Estimated Rental Yield: 16.28%
- Property Appreciation (5-Year): Approximately 35.2%
Why Invest in Myrtle Beach, South Carolina?
- Major Vacation Destination – High year-round tourism ensures steady rental demand.
- Beachfront Appeal – Oceanfront properties command premium nightly rates.
- Strong Rental Performance – High occupancy rates and consistent appreciation create a strong ROI.
Myrtle Beach offers strong tourism-driven demand, competitive home prices, and high rental yields, making it a top short-term rental investment city in 2025.
5. Pigeon Forge, Tennessee
Pigeon Forge, Tennessee, is a highly sought-after short-term rental market, especially for investors looking to tap into the region’s strong tourism industry. Known for its proximity to the Great Smoky Mountains National Park, Pigeon Forge draws millions of visitors yearly for its family-friendly attractions, including Dollywood, dinner shows, and scenic outdoor activities. Its affordable property prices and high rental demand make it an attractive option for real estate investors seeking strong returns in the vacation rental market.
Key Market Metrics:
- Average Home Value: $437,384
- Average Daily Rate & Occupancy: $237.2 & 55% respectively
- Estimated Rental Yield: 14.81%
- Property Appreciation (5-Year): Approximately 41.7%
Why Invest in Pigeon Forge, Tennessee?
- Tourist Hotspot: Pigeon Forge sees a steady influx of tourists year-round, creating high demand for short-term rental properties.
- Affordable Property Prices: Compared to nearby Gatlinburg, Pigeon Forge offers more affordable property prices while maintaining strong rental yields.
- Strong Year-Round Demand: Pigeon Forge’s combination of attractions, natural beauty, and local events makes it a year-round destination, ensuring consistent vacation rental bookings.
Pigeon Forge is a prime destination for short-term rental investment. It offers a balanced mix of high rental yields, strong tourism demand, and affordable entry prices, making it a top choice for investors in 2025.
6. Buffalo, New York
Buffalo, New York, has become a rising star in the short-term rental market, thanks to its revitalizing economy, growing tourism sector, and affordable real estate prices. As the second-largest city in New York State, Buffalo boasts a mix of cultural attractions, historic sites, and a burgeoning food scene, making it a popular destination for leisure and business travelers. With strong rental yields and a growing number of visitors, Buffalo presents a compelling investment opportunity in 2025.
Key Market Metrics:
- Average Home Value: $224,113
- Average Daily Rate & Occupancy: $179.4 & 49% respectively
- Estimated Rental Yield: 14.12%
- Property Appreciation (5-Year): Approximately 28.6%
Why Invest in Buffalo, New York?
- Emerging City: Buffalo’s economy is resurgent, with infrastructure and real estate investments driving growth and increasing tourism.
- Affordable Property Prices: Compared to other major cities in New York State, Buffalo offers more affordable real estate options, creating opportunities for higher returns on investment.
- Attractive Tourism & Events: Buffalo is home to attractions like the Buffalo Zoo and the Albright-Knox Art Gallery and is a gateway to Niagara Falls, attracting tourists year-round.
With competitive home prices, increasing tourism, and a growing economy, Buffalo stands out as a strong short-term rental investment market in 2025. Investors can take advantage of its affordability, robust tourism, and promising rental yields for a solid return on investment.
7. Toledo, Ohio
Toledo, Ohio, is a standout market for long-term rental investments, thanks to its affordable property prices, stable rental demand, and steady economic growth. As the fourth-largest city in Ohio, Toledo offers a combination of cheap living, diverse industries, and a strong tenant base. With a low cost of entry and a high rental yield, Toledo is an excellent option for investors looking for a reliable, long-term rental market in 2025.
Key Market Metrics:
- Average Home Value: $120,190
- Average Monthly Rent: $908
- Estimated Rental Yield: 8.99%
- Property Appreciation (5-Year): Approximately 26.5%
Why Invest in Toledo, Ohio?
- Affordable Property Prices: Toledo offers some of the most affordable real estate in the Midwest, making it a prime location for long-term rental investments with strong returns.
- Consistent Demand: Toledo offers a reliable and consistent demand for rental properties due to its large student population, steady workforce, and low vacancy rates.
- Growing Economy: Key sectors like manufacturing, healthcare, and education bolster the city’s economy, which continues to create job opportunities and draw renters to the area.
Toledo offers an excellent combination of low property prices and high rental yields, making it one of the top cities for long-term rental investments. With strong demand and affordable entry costs, investors can expect a solid return over time.
8. Rockford, Illinois
Rockford, Illinois, is a strong contender for long-term rental investments due to its affordability, stable rental market, and growing economic base. As the third-largest city in Illinois, Rockford offers investors attractive property prices and a steady stream of renters, particularly from the city’s manufacturing, healthcare, and education sectors. Its high rental yield and low entry costs make it a solid option for long-term rental investments in 2025.
Key Market Metrics:
- Average Home Value: $157,258
- Average Monthly Rent: $1,150
- Estimated Rental Yield: 8.78%
- Property Appreciation (5-Year): Approximately 27.9%
Why Invest in Rockford, Illinois?
- Affordable Real Estate: With one of the lowest home prices in the region, Rockford offers investors the opportunity to purchase properties at a low cost while enjoying strong rental yields.
- Consistent Renters: The city’s key industries, including healthcare, education, and manufacturing, ensure a steady stream of renters, keeping occupancy rates and vacancies low.
- Economic Growth: Rockford’s financial landscape is diversifying, with growing sectors like logistics, technology, and healthcare attracting new businesses and residents and strengthening demand for rental properties.
Rockford presents an excellent opportunity for long-term rental investors looking to enter a market with a low cost of entry, reliable demand, and a stable economy, making it a top pick for 2025.
9. Tulsa, Oklahoma
Thanks to its affordable property values, steady rental demand, and diverse economy, Tulsa, Oklahoma, offers an appealing long-term rental investment opportunity. As one of Oklahoma’s largest cities, Tulsa benefits from various industries, including energy, aerospace, technology, and healthcare, providing a solid foundation for a growing and stable rental market. With favorable housing prices and strong rental yields, Tulsa is an excellent choice for long-term investors looking to capitalize on a market with room for growth.
Key Market Metrics:
- Average Home Value: $200,800
- Average Monthly Rent: $1,375
- Estimated Rental Yield: 8.22%
- Property Appreciation (5-Year): Approximately 30.8%
Why Invest in Tulsa, Oklahoma?
- Affordable Housing Market: Tulsa offers attractive home prices well below national averages, allowing investors to secure properties at a lower cost while enjoying strong rental returns.
- Stable Rental Demand: With a diverse and growing economy, Tulsa sees consistent demand for rental properties, driven by sectors like energy, aerospace, and healthcare.
- Strong Economic Growth: Tulsa’s economy is expanding, with a rising tech scene, continued investments in infrastructure, and a stable job market providing ongoing rental demand.
Tulsa offers a blend of affordability, high rental yields, and a stable economic foundation, making it a solid choice for long-term rental investment in 2025.
10. Oklahoma City, Oklahoma
Oklahoma City, Oklahoma, is a top choice for long-term rental investment due to its affordable housing market, strong rental demand, and diverse economy. As the capital and largest city in the state, Oklahoma City has become an attractive destination for renters and investors alike, thanks to its stable job market, low cost of living, and growing population. The city’s real estate market offers excellent opportunities for long-term investors looking for reliable rental income and solid appreciation.
Key Market Metrics:
- Average Home Value: $198,272
- Average Monthly Rent: $1,350
- Estimated Rental Yield: 8.17%
- Property Appreciation (5-Year): Approximately 31.2%
Why Invest in Oklahoma City, Oklahoma?
- Affordable Property Prices: Oklahoma City’s real estate market remains one of the most affordable among major U.S. cities, offering investors the chance to acquire properties at lower prices while enjoying solid rental yields.
- Stable Job Market: The city benefits from a diverse economy with key sectors such as energy, aerospace, healthcare, and technology, ensuring a steady stream of renters and high occupancy rates.
- Population Growth & Demand: Oklahoma City has experienced consistent population growth in recent years, further fueling the demand for rental properties and contributing to increased long-term rental income potential.
Oklahoma City offers a well-rounded investment opportunity with its affordable properties, growing economy, and steady rental demand, making it an ideal location for long-term rental investments in 2025.
11. El Paso, Texas
El Paso, Texas, presents a compelling opportunity for long-term rental investors, thanks to its affordable housing market, strong rental demand, and solid economic foundation. As a border city with a diverse economy spanning military, manufacturing, healthcare, and trade, El Paso offers stable growth prospects and consistent demand for rental properties. The city’s low cost of living and growing population make it an ideal market for investors looking to benefit from long-term rental income.
Key Market Metrics:
- Average Home Value: $224,689
- Average Monthly Rent: $1,506
- Estimated Rental Yield: 8.04%
- Property Appreciation (5-Year): Approximately 28.3%
Why Invest in El Paso, Texas?
- Affordable Real Estate: Compared to other major Texas cities, El Paso’s real estate market is highly affordable, allowing investors to enter at a lower price while still enjoying solid returns.
- High Rental Demand: With a growing population, a significant military presence (Fort Bliss), and strong job sectors like healthcare and manufacturing, El Paso sees consistent demand for rental properties.
- Economic Stability: El Paso benefits from a diverse and resilient economy. Its strong international trade connection with Mexico boosts local industries and provides long-term growth potential.
El Paso’s affordable housing market, combined with strong rental demand and economic diversity, makes it a prime location for long-term rental investments, offering stability and strong returns for 2025 and beyond.
Own a Rental Property for Under $300K with HomeAbroad’s DSCR Loan
With HomeAbroad’s DSCR (Debt Service Coverage Ratio) loan, you can finance rental properties under $300K based on the property’s rental income without facing obstacles of traditional income verification or extensive documentation. If your rental income covers the mortgage payment, you can quickly secure a DSCR loan and expand your investment portfolio.
HomeAbroad simplifies the process with AI-powered property searches, expert real estate guidance, and concierge services for LLC setup, banking, and insurance. Whether you’re a U.S. resident or an international investor, we make the entire process hassle-free, so you can focus on growing your rental income.
Apply for a DSCR loan today and take the next step in your investment journey with HomeAbroad!
Pre-qualify for a US mortgage as an international buyer.
No US credit history needed.
Frequently Asked Questions
How many bedrooms and bathrooms will I get in a house within $300K?
The number of bedrooms and bathrooms you’ll get in a house within $300K will depend on your choice of house. However, on average, you can expect to find homes with three bedrooms and two bathrooms within this price range. Remember that the rooms’ size and layout may vary, so inspect the property.
Can a home with a garage or other storage space be found at a housing price under $300K?
Depending on the location and other factors, it may be possible to find a home with a garage or other storage space in a housing price range under $300 K. It is advisable to consult with a real estate agent to learn more about specific properties that fit this criterion.
Are there any hidden costs associated with buying a cheaper house?
The answer to this question depends on the individual situation. Some hidden costs may be associated with buying a cheaper house, such as needing more repairs or upgrades than a more expensive home. However, these costs will vary depending on the property’s condition and the home’s market value.
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.
AirDNA: Short-Term Rental Data
Zillow: Rental Data & Home Values
