12 Best Places to Buy Rental Property in the US [2026]

The 2026 US rental market has split in two. Rents are still climbing in supply-constrained Midwest and Northeast markets, while several Sun Belt and Mountain West metros are dealing with the effects of heavy new construction.

Austin, San Antonio, Denver, Houston, Phoenix, and Dallas all rank among the weakest large metros for five-year rent growth, while markets such as New York, Chicago, Cleveland, Virginia Beach, and St. Louis have posted much stronger gains.

The line runs almost exactly where investors were told it would not. Austin’s rents are up just 4.4% over five years, compared with 36.3% in Chicago, illustrating how dramatically rental-market performance has diverged across the US.

Population growth and headline appreciation tell only part of the story. Supply, rent momentum, purchase prices, taxes, insurance, and financing all shape whether a market makes sense for a rental investment in 2026.

This guide ranks 12 US rental markets using rent growth, home-value trends, supply conditions, taxes, regulation, and investment-property considerations. It also highlights the factors foreign national investors should consider when evaluating a US rental market, including foreign-ownership rules, property taxes, insurance, and local investment conditions.

The 2026 US Rental Market at a Glance

The regional split, in one table

The strongest five-year rent growth is concentrated in the Northeast and Midwest, where limited new supply has helped rents continue to rise. New York leads the largest US metros at +42.3%, followed by Chicago at +36.3%, Cleveland at +34.8%, Virginia Beach at +33.3%, and St. Louis at +31.7%.

Source: Zillow Observed Rent Index (ZORI), metro level, all homes plus multifamily

Supply is a major reason for the divide. The 2024 construction wave was concentrated in Sun Belt markets, leaving many of those metros with more rental inventory to absorb. Meanwhile, Northeast and Midwest markets that added less new supply have maintained stronger rent growth. PwC and ULI’s Emerging Trends in Real Estate outlook similarly expects excess Sun Belt deliveries to keep rent growth relatively subdued while supply-constrained markets continue to benefit from tighter conditions.

Home values are following a similar regional pattern. Values fell year over year in 13 states, led by Florida (-2.8%), Nevada (-2.1%), Colorado (-2.0%), Texas (-1.9%), and Arizona (-1.6%). Meanwhile, values rose 5.2% in New York, 5.0% in Illinois, 4.9% in Wisconsin, and 3.5% in Ohio.

For investors, that creates two distinct starting points in 2026: markets where rental income has continued to strengthen, and markets where softer rents and home values may create better entry prices. The right choice depends on whether the investment needs immediate rental momentum, a lower acquisition basis, or a combination of both.

Best States to Buy Rental Property in 2026

State choice sets your fixed costs and legal exposure for the whole hold period. Property tax rates and eviction timelines do not change because you found a good deal.

The trade-off most investors miss: the states with the friendliest landlord statutes are frequently the ones where values and rents are now flat or falling, and the states with the strongest 2026 momentum (New York, Illinois, Minnesota) carry heavier regulation. No state on this list is simultaneously cheap, appreciating, and lightly regulated.

For eviction timelines, rent control detail, deposit limits, and property tax rates by state, see the full breakdown of landlord-friendly states.

Tier 1: Cash Flow and Rent Momentum Markets

Four metros combining low entry prices with rent growth above the national rate and five-year rent growth above the national 27.2%. These are not appreciation plays. They are markets where the monthly math works from the start.

1. Cleveland, Ohio

Cleveland is the cleanest expression of the 2026 thesis: the sixth-strongest five-year rent growth among large metros, paired with one of the lowest rent levels on this list. Rents rose 34.8% over five years, compared with 27.2% nationally.

The city-proper distinction matters here more than almost anywhere. Zillow put the typical Cleveland city home value at $120,549 in late May 2026, far below the Ohio state figure of $251,502. Investors buying inside city limits work from a very different basis than any statewide number implies.

The constraint: Ohio’s effective property tax rate runs around 1.36% statewide, above the national average, and Cuyahoga County runs well above the state figure. On a low-value property, property tax consumes a much larger share of gross rent than it does in a higher-priced market.

Not for you if: you want appreciation on the property itself. Cleveland city values were down 2.3% year over year in the most recent reading even as the state rose 3.5%.

More local details are in the Ohio housing market guide. Financing options are on the Ohio DSCR loan page.

2. Milwaukee, Wisconsin

Wisconsin was among the six fastest-appreciating states at 4.9%, and Milwaukee rents rose 4.2%. Rising rents and rising values at the same time are uncommon in 2026, and it is the combination that puts Milwaukee near the top of this list.

Milwaukee also recorded one of the largest monthly declines in rental concession share nationally, down 2.6 percentage points in June, which suggests tightening rather than a one-month spike.

The constraint: Wisconsin property taxes run above the national average, and Milwaukee’s older housing stock makes lead paint disclosure, knob-and-tube wiring, and roof age live inspection issues rather than theoretical ones.

Not for you if: you are buying sight-unseen without a thorough inspection and a renovation reserve.

Planning to invest in Wisconsin? Explore HomeAbroad’s Wisconsin DSCR loan page.

3. St. Louis, Missouri

St. Louis is the market that appears on the fewest competing lists and holds up best under the five-year screen. Rents rose 31.7% over five years and 4.0% in the past year, at the second-lowest rent level of any metro covered here.

Missouri has no statewide rent control, a straightforward eviction procedure, and home values that rose 3.2% while Texas, Florida, and Georgia fell.

The constraint: St. Louis City and St. Louis County are separate jurisdictions with different tax rates, different ordinances, and very different submarket quality. Buying “St. Louis” without knowing which one you are in is the most common mistake here.

Not for you if: you are not prepared to underwrite at the municipality level.

Missouri financing is on the Missouri DSCR loan page.

Steven Glick

Director of Mortgage Sales · HomeAbroad

NMLS #1231769 ✓ Licensed LO

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A low purchase price does not automatically make a property easier to finance. If the appraisal or rent survey does not support the numbers, it can affect whether the property qualifies. Investors should make sure their rent expectations are realistic before moving forward.

4. Buffalo, New York

Buffalo is where the two Zillow rent series diverge most usefully. On the all-homes index, it rose 3.1%. On the single-family index it rose 5.1%, and Chandan Economics and Arbor found Buffalo led all 50 of the largest metros for single-family rent growth in the first half of 2026.

That gap is the investment case. Buffalo’s apartment stock is competitive; its houses are not. If you are buying a single-family rental, you are buying into the tighter half of the market.

New York posted the third-strongest home value growth of any state at 5.2%, though the state figure of $525,947 is dominated by downstate and does not describe Buffalo pricing.

The constraint: New York has the heaviest landlord regulation of any market on this list. Eviction timelines are long, tenant protections are strong, and rent stabilization applies in designated areas. Buffalo is not New York City and the rules differ, but an overseas owner should budget for a slower and more expensive process if a tenancy goes wrong.

Not for you if: you need to resolve a nonpayment situation quickly, or you are managing without a local property manager.

New York financing is on the New York DSCR loan page.

Tier 2: Sun Belt Markets Repricing

These four are on the list for the opposite reason to Tier 1. Rents are flat or falling and values have softened. What has changed is the entry price. Buying well here is a basis exercise, and the discipline is in what you pay rather than in what you project.

5. Atlanta, Georgia

Zillow ranked Atlanta the second most buyer-friendly major market of 2026. Georgia is also the fifth-largest state destination for international buyers, at 4% of foreign purchases.

Atlanta is the strongest of the Tier 2 group: rents still grew 1.9% while Tampa and San Antonio fell, and the employment base is diversified across logistics, healthcare, film, and corporate headquarters rather than concentrated in one sector. Georgia preempts rent control and property taxes sit below the national average.

The constraint: metro Atlanta is enormous and internally inconsistent. Submarket selection carries more weight here than in any other market on this list, and the county line you buy on changes your tax bill materially. State home values also turned negative this year.

Not for you if: you are treating “Atlanta” as a single market.

Georgia financing is on the Georgia DSCR loan page.

6. Charlotte, North Carolina

Charlotte shows what softer rental conditions can look like in a market that still attracts investors. About two-thirds of listings are offering a move-in concession, while rents grew just 0.5% over the past year. For investors, the combination means rental income may take longer to strengthen, but softer conditions can also create more negotiating room when acquiring a property.

Both facts point the same way: you can buy well here and should expect to lease at a discount to asking rent for some time. North Carolina preempts rent control and property taxes run below the national average, which helps carry a soft rent year.

The constraint: underwrite the concession. If two-thirds of competing listings offer a free month, your effective first-year rent is roughly 8% below your asking rent. A pro forma that ignores that is wrong by more than most investors’ margin.

Not for you if: your deal only works at full asking rent with zero vacancy.

North Carolina financing is on the North Carolina DSCR loan page.

7. Tampa, Florida

Florida remains the top destination for international buyers at 20% of all foreign purchases, and Tampa is here because the buying conditions have changed, not because the rent trend has.

Be clear about the trend: Tampa asking rents fell 0.7% year over year, and Florida posted the largest home value decline of any state at -2.8%. Statewide inventory sat at 7.47 months with a median 84 days on market.

Two things moved in the buyer’s favor. Prices eased, giving genuine negotiating room that did not exist in 2022. And insurance finally turned: Citizens Property Insurance approved an average statewide rate decrease of 8.8% for 2026, and the Florida Office of Insurance Regulation reported decreases in 51 of the state’s 67 counties, with Miami-Dade averaging roughly 14%.

Tampa’s five-year rent growth of 27.3% is essentially in line with the national 27.2% increase, distinguishing it from the Texas metros where five-year rent growth has been much weaker.

The constraint: falling insurance rates are not the same as cheap or available insurance. Flood zone designation, elevation certificate, roof age, and coastal proximity still drive both price and availability. Southwest Gulf Coast counties are down sharply, with Charlotte County off 9.6% year over year, which is the market pricing climate risk directly. Get a bindable quote before your inspection period ends.

Also: Florida SB 264 requires a compliance affidavit from every buyer. See the section above.

Not for you if: you need rent growth in the next 24 months, or you are buying a condo without reading the reserve study and structural inspection report.

More Florida details are in the Florida rental investment guide, and financing is on the Florida DSCR loan page.

8. San Antonio, Texas

San Antonio appeared on the previous version of this list as a growth market. The data does not support that framing, and the five-year number is the reason.

San Antonio asking rents rose 8.7% between June 2021 and June 2026. The national figure over the same period was 27.2%. Rents then fell 1.8% in the past year, the steepest decline of any large metro. Texas home values fell 1.9% and are up only 14.8% over five years, roughly half the Ohio or Wisconsin figure.

What keeps San Antonio on this list is entry price and tenant base. It has the lowest rent level of any metro here, which reflects the lowest home prices among large Texas metros. The military and medical employment base is stable and largely insulated from the private-sector cycle. Texas preempts rent control and has a fast eviction process.

This is a buy-at-the-right-basis market, and only that.

The constraint: Texas property taxes are relatively high, which can put more pressure on a rental property’s cash flow and DSCR (Debt Service Coverage Ratio). And a nonresident investor has no Texas income to offset them against. Falling rents plus heavy carrying costs leave very little margin for overpaying.

Not for you if: you need rent growth in the first 24 months, or you are underwriting on the assumption that the 2021 to 2023 Sun Belt pattern resumes.

Texas financing is on the Texas DSCR loan page.

Lucas Hernandez

Mortgage Loan Originator, HomeAbroad

NMLS #2171747 ✓ Licensed LO

“

A property’s rent-to-price relationship can make a big difference in DSCR qualification. A property with stronger rent relative to its price generally has more room to support the monthly debt payment. Investors should run the numbers at the actual purchase price, rent, taxes, and insurance before assuming a deal will meet the required DSCR.

Tier 3: Supply-Constrained Markets for Appreciation-Weighted Investors

These markets have stronger long-term rent growth and tighter supply conditions, but they come with different entry prices and cash-flow profiles. The investment case depends on whether sustained rental demand and limited new supply can support long-term performance.

9. Chicago, Illinois

Chicago has the fourth-strongest five-year rent growth among the 50 largest US metros and the fourth-strongest one-year growth at 5.2%.

What makes Chicago unusual is that it delivers that rent momentum at a state home value of $298,872, well below the national $370,320. Most markets with Chicago’s rent growth cost far more to enter. Illinois also preempts local rent control statewide.

The constraint: Cook County property taxes are among the highest in the United States, and assessment appeals are a routine part of ownership rather than an exception. The City of Chicago layers its own tenant ordinance on top of state law.

Not for you if: you have not modeled a property tax reassessment after purchase.

Illinois financing is on the Illinois DSCR loan page.

10. Virginia Beach, Virginia

Virginia Beach posted the strongest rent growth of any large metro outside the Bay Area at 5.5%, with 33.3% over five years. Its concession share also fell 3.3 percentage points month over month in June, the second-largest decline nationally, which points to genuine tightening.

The demand base is anchored by one of the largest concentrations of military and defense employment in the country, producing steady turnover with reliable income documentation and low sensitivity to the private-sector cycle. Virginia has no statewide rent control and property taxes below the national average.

The constraint: concentrated employment is a strength until it is not. Defense budget and basing decisions move this market in ways a diversified metro does not experience. Coastal flood and wind exposure also affect insurance pricing.

Not for you if: you want employment diversification.

Virginia financing is on the Virginia DSCR loan page.

11. Minneapolis, Minnesota

Minneapolis rents rose 3.4%, above the national rate, and Yardi’s data has placed the Twin Cities at the top of build-to-rent asking rent growth alongside Chicago. The upper Midwest did not receive the delivery wave that hit the Sun Belt, and the supply picture here is among the most balanced in the country.

The constraint: the five-year numbers are the weakest of any Tier 1 or Tier 3 market here, with rents up 18.5% and state home values up 16.3% against a national 27.2% rent figure. Minneapolis is doing well right now on a base that grew slowly. It also carries real regulatory complexity: Minneapolis and Saint Paul have both adopted local tenant protection ordinances, and Minnesota allows local rent regulation by referendum.

Not for you if: you are relying on a statewide landlord-friendliness ranking without reading the municipal ordinance.

Minnesota financing is on the Minnesota DSCR loan page.

12. New York Metro

New York metro has the strongest five-year rent growth of any large US market at 42.3%, well ahead of the national 27.2%, and it added another 4.5% in the past year. New York State posted the third-strongest home value growth of any state at 5.2%.

Zillow’s analysis of rental competition found the Northeast and coastal California dominating because the record 2024 construction boom largely bypassed them. New Jersey is also the fourth-largest state destination for international buyers at 4% of foreign purchases.

New York State is therefore an interesting case on this list: it contains both Buffalo, one of the cheapest markets covered here, and the New York metro, the most expensive. Same statute book, opposite investment cases.

The constraint: entry price, transfer taxes, property taxes in the New Jersey and Westchester portions, and the most restrictive landlord-tenant framework of any market covered. Cash flow in year one is unlikely, which also means most debt service coverage ratio programs will not fit without a large down payment.

Not for you if: you need the property to cover its own debt service from month one.

“

Market conditions can directly affect how a property performs in underwriting. Strong rent relative to the purchase price can support the debt service, while higher taxes, insurance, or a weaker rent profile can reduce the property’s financing strength. Investors should look at the full property economics before choosing a market.

Jeff Larrabee

Senior Customer Loan Specialist, HomeAbroad

NMLS #482306

Markets We Left Off, and Why

Leaving markets out is a decision, so here is the reasoning on five that appear on most competing lists.

Austin, Texas: Rents rose 4.4% over five years, the weakest of any large US metro, and fell 1.7% in the past year. Austin absorbed one of the heaviest per-capita delivery pipelines in the country and is still working through it.

Denver, Colorado: Rents fell 1.3% and are up only 13.5% over five years. Colorado home values fell 2.0% and are up just 9.6% over five years, the weakest of any state examined. The 2024 for-cause eviction law also removed Colorado from the top tier on regulatory friction.

Dallas-Fort Worth, Texas: DFW sits at or near the top of institutional watch lists and the long-term case is real. For an individual investor, rents were flat over the past year, up 16.2% over five years, 64.6% of listings carry a concession, and Texas property taxes are heavy. The scale that makes DFW attractive to a fund does not transfer to a single-property buyer.

Phoenix, Arizona: Rents were flat over the past year and up 13.2% over five years. Arizona home values fell 1.6%. The statutes are landlord-friendly, but pricing has not corrected as far as the rent softening would justify.

Indianapolis, Indiana: A near miss. Zillow named it the most buyer-friendly major market of 2026, and Indiana home values rose 3.0%, but rents grew 2.5%, slightly above the national 2.2% rate but well behind Cleveland, Milwaukee, and St. Louis on both the one-year and five-year screens. It is a reasonable alternative for anyone who prioritizes acquisition conditions over rent momentum.

None of these are permanently off the list. They are off at current pricing relative to current rent trajectory.

Long-Term vs Short-Term Rentals in 2026

Six markets on the previous version of this list were short-term rental markets. They have moved to a dedicated guide, because the 2026 short-term rental picture is driven by local regulation and supply in ways that need more space than a section allows.

Short-term rentals can produce higher gross revenue in the right market, but they also introduce more operational and regulatory risk. The better strategy depends on local rules, expected occupancy, operating costs, and how actively you want to manage the property.

State Foreign-Ownership Rules International Investors Should Check

Most market guides skip this step. For a nonresident buyer, it can decide whether a purchase closes at all.

There is no federal law restricting foreign nationals from owning US residential real estate. You do not need a visa, green card, or US residency to buy. Several states have considered or enacted laws restricting or regulating certain foreign ownership of US real estate, with the scope varying significantly by state, buyer, property type, and country of association.

Texas SB 17

Texas Senate Bill 17 took effect September 1, 2025, adding Subchapter H to the Texas Property Code. It restricts the purchase or acquisition of real property by governments, companies, organizations, and certain individuals from designated countries.

The initial designated list is China, Russia, Iran, and North Korea. The list is tied to countries identified by the US Director of National Intelligence as posing a national security risk within the preceding three years, and the governor of Texas may designate additional countries. Attorney General implementing rules took effect April 26, 2026.

The statute reaches individuals as well as entities. Nonimmigrant visa holders, including students and temporary workers, are within scope where the person has an association with a designated country. Penalties are both civil and criminal.

Florida SB 264

Florida’s Senate Bill 264, enacted in 2023, restricts purchases by persons domiciled in or connected to specified foreign countries of concern, with tighter provisions for property near military installations and critical infrastructure, and the strictest provisions directed at China. Covered holdings must be registered.

The practical effect reaches every Florida buyer, not only affected ones. Purchasers of Florida real estate must sign an affidavit attesting that the purchase complies with the statute, and Florida closing attorneys now build this into the standard file.

What this means in practice

• Both laws are the subject of active constitutional litigation on federal preemption and Fair Housing Act grounds. Neither has been struck down as of this writing.
• For most international buyers, including buyers from Canada, Mexico, India, the UK, and the EU, these statutes are a disclosure step rather than an obstacle.
• Do not self-assess. These laws turn on domicile, entity control, and country association, and the definitions are technical. Have a licensed closing attorney in the target state review your position before you go under contract.
• Check the current statute for your target state. This area is changing quickly.

How We Chose These 12 Markets

Most market lists do not say how the list was built. Here is ours.

The starting data set is Zillow’s published research files:

• Rents: Zillow Observed Rent Index, metro level, all homes plus multifamily, smoothed. This measures asking rent on new listings, not what sitting tenants renew at. Series through June 30, 2026.
• Home values: Zillow Home Value Index, state level, mid-tier (33rd to 67th percentile), smoothed and seasonally adjusted. This is the typical value of a middle-of-market home, not an average sale price. Series through June 30, 2026.

Every metro among the 50 largest was scored on:

Adding the five-year rent series to the screen is what separates this list from most. A single year of rent growth can be noise. Five years tells you whether a market has structural pricing power or simply had one good quarter.

Ready to Buy a US Rental Property?

At HomeAbroad, we offer foreign national mortgage solutions designed for investors who may not have an established US credit history. Our financing is built around the needs of international investors buying US investment properties, with qualification based on the applicable program and the property’s investment profile.

Beyond financing, HomeAbroad offers an AI-native investment property search platform that helps investors identify and evaluate US rental opportunities based on their investment strategy.

Whether you are comparing markets, evaluating a specific property, or preparing to finance your next acquisition, HomeAbroad brings the property search and financing sides of the investment process together.

Ready to explore your next US investment property? Get started with HomeAbroad today.

FAQs

About the author:

Michele Lawrie, a seasoned real estate professional licensed in New York and Florida, serves as the Real Estate Consultant at HomeAbroad. With over 15 years of experience and specialized certifications from the NAR (National Association of Realtors), Michele is a trusted expert for foreign nationals buying US real estate.

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