Best Rental Markets in 2026
Top cities ranked by cap rate. Higher cap rate = better cash flow potential. Data from HUD Fair Market Rents and Census median home values.
By Cap RateBy Cash Flow
| # | City | Cap Rate | Cash Flow | Home Price | Rent (3BR) | Verdict |
|---|---|---|---|---|---|---|
| 1 | Detroit, MI | 10.5% | +$520/mo | $85,000 | $1,100/mo | 🟢 STRONG |
| 2 | Cleveland, OH | 9.8% | +$485/mo | $105,000 | $1,250/mo | 🟢 STRONG |
| 3 | Toledo, OH | 9.2% | +$470/mo | $95,000 | $1,000/mo | 🟢 STRONG |
| 4 | Rockford, IL | 9.0% | +$450/mo | $100,000 | $1,050/mo | 🟢 STRONG |
| 5 | Dayton, OH | 8.8% | +$430/mo | $110,000 | $1,100/mo | 🟢 STRONG |
| 6 | Peoria, IL | 8.6% | +$410/mo | $100,000 | $1,000/mo | 🟢 STRONG |
| 7 | Akron, OH | 8.5% | +$400/mo | $105,000 | $1,050/mo | 🟢 STRONG |
| 8 | Memphis, TN | 8.2% | +$380/mo | $135,000 | $1,350/mo | 🟢 STRONG |
| 9 | Jackson, MS | 8.2% | +$380/mo | $110,000 | $1,050/mo | 🟢 STRONG |
| 10 | Macon, GA | 8.2% | +$375/mo | $105,000 | $1,000/mo | 🟢 STRONG |
| 11 | South Bend, IN | 8.2% | +$375/mo | $105,000 | $1,000/mo | 🟢 STRONG |
| 12 | Topeka, KS | 8.0% | +$360/mo | $115,000 | $1,050/mo | 🟢 GOOD |
| 13 | Birmingham, AL | 7.8% | +$340/mo | $125,000 | $1,200/mo | 🟢 GOOD |
| 14 | St. Louis, MO | 7.8% | +$350/mo | $145,000 | $1,300/mo | 🟢 GOOD |
| 15 | Rochester, NY | 7.8% | +$340/mo | $135,000 | $1,200/mo | 🟢 GOOD |
| 16 | Shreveport, LA | 7.6% | +$320/mo | $125,000 | $1,100/mo | 🟢 GOOD |
| 17 | Pittsburgh, PA | 7.5% | +$320/mo | $155,000 | $1,350/mo | 🟢 GOOD |
| 18 | Baltimore, MD | 7.5% | +$320/mo | $175,000 | $1,500/mo | 🟢 GOOD |
| 19 | Buffalo, NY | 7.5% | +$310/mo | $145,000 | $1,250/mo | 🟢 GOOD |
| 20 | Odessa, TX | 7.5% | +$315/mo | $165,000 | $1,400/mo | 🟢 GOOD |
| 21 | Abilene, TX | 7.4% | +$295/mo | $148,000 | $1,250/mo | 🟢 GOOD |
| 22 | Evansville, IN | 7.3% | +$280/mo | $125,000 | $1,050/mo | 🟢 GOOD |
| 23 | Milwaukee, WI | 7.2% | +$280/mo | $165,000 | $1,350/mo | 🟢 GOOD |
| 24 | Indianapolis, IN | 7.1% | +$290/mo | $185,000 | $1,500/mo | 🟢 GOOD |
| 25 | Tulsa, OK | 7.1% | +$270/mo | $155,000 | $1,250/mo | 🟢 GOOD |
| 26 | Amarillo, TX | 7.1% | +$270/mo | $162,000 | $1,300/mo | 🟢 GOOD |
| 27 | Wichita, KS | 7.0% | +$260/mo | $145,000 | $1,150/mo | 🟢 GOOD |
| 28 | Augusta, GA | 6.9% | +$250/mo | $145,000 | $1,150/mo | 🟢 GOOD |
| 29 | Oklahoma City, OK | 6.8% | +$250/mo | $175,000 | $1,350/mo | 🟢 GOOD |
| 30 | Little Rock, AR | 6.8% | +$240/mo | $155,000 | $1,200/mo | 🟢 GOOD |
| 31 | Lubbock, TX | 6.8% | +$245/mo | $175,000 | $1,350/mo | 🟢 GOOD |
| 32 | Fort Wayne, IN | 6.8% | +$240/mo | $155,000 | $1,200/mo | 🟢 GOOD |
| 33 | Cincinnati, OH | 6.6% | +$220/mo | $185,000 | $1,400/mo | 🟢 GOOD |
| 34 | Kansas City, MO | 6.5% | +$220/mo | $195,000 | $1,450/mo | 🟢 GOOD |
| 35 | Philadelphia, PA | 6.5% | +$210/mo | $220,000 | $1,600/mo | 🟢 GOOD |
| 36 | Waco, TX | 6.4% | +$200/mo | $185,000 | $1,350/mo | 🟢 GOOD |
| 37 | Springfield, MO | 6.4% | +$200/mo | $165,000 | $1,200/mo | 🟢 GOOD |
| 38 | Louisville, KY | 6.3% | +$190/mo | $195,000 | $1,400/mo | 🟢 GOOD |
| 39 | Corpus Christi, TX | 6.3% | +$195/mo | $195,000 | $1,400/mo | 🟢 GOOD |
| 40 | Columbus, OH | 6.2% | +$180/mo | $225,000 | $1,550/mo | 🟢 GOOD |
| 41 | New Orleans, LA | 6.2% | +$175/mo | $210,000 | $1,500/mo | 🟢 GOOD |
| 42 | Des Moines, IA | 6.1% | +$170/mo | $195,000 | $1,350/mo | 🟢 GOOD |
| 43 | El Paso, TX | 6.1% | +$175/mo | $180,000 | $1,250/mo | 🟢 GOOD |
| 44 | Chicago, IL | 6.0% | +$160/mo | $265,000 | $1,800/mo | 🟢 GOOD |
| 45 | San Antonio, TX | 5.8% | +$120/mo | $265,000 | $1,650/mo | 🟡 MODERATE |
| 46 | Omaha, NE | 5.6% | +$100/mo | $225,000 | $1,450/mo | 🟡 MODERATE |
| 47 | Houston, TX | 5.5% | +$90/mo | $280,000 | $1,750/mo | 🟡 MODERATE |
| 48 | Jacksonville, FL | 5.5% | +$95/mo | $275,000 | $1,650/mo | 🟡 MODERATE |
| 49 | Chattanooga, TN | 5.5% | +$95/mo | $235,000 | $1,450/mo | 🟡 MODERATE |
| 50 | Huntsville, AL | 5.4% | +$80/mo | $245,000 | $1,500/mo | 🟡 MODERATE |