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 homebuying more attractive 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 manage a rental property remotely.

Here, TurboTenant 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 monthly rent 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 rent estimate tool 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 cash flow 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 landlord-friendly than others, which lean more towards protecting tenants’ rights. Read up on local landlord-tenant laws 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 vacancy rate, 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 property taxes 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 median home price of $277,000, housing in Cincinnati is notably affordable, particularly for a diverse large city with numerous outdoor activities. In terms of rent prices, the median monthly rent is $1,495, which translates to a decent rent-to-price ratio of 15.4.

While the 2.38% property tax rates 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 healthy vacancy rate of less than 8%, and a 2020 report from the Greater Cincinnati Foundation projects that job growth will happen at a rate of 6.2% between 2018 and 2028.

As for landlord-tenant laws, Ohio has comparatively few restrictions. The eviction process requires a notice of three to 30 days, and there are no limits on rent or security deposits. Last but not least, there are plenty of improvement projects on the horizon in Cincinnati, including an upgraded convention center and multiple mixed-use developments.

Denton, Texas

Located in the famously landlord-friendly state of Texas, Denton is a suburb of the Dallas-Fort Worth area that’s packed with different things to do, 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.

Job growth 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 unemployment rate 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 nationwide leader in sustainability. It’s the only city in Texas to operate on 100% renewable energy. Several other infrastructure projects are underway, including an upgrade to the Denton Enterprise Airport and the construction of two new H-E-B grocery stores.

There are some downsides, though. Denton’s median home sales price is $375,000, and the median rent is $1,438, resulting in a rent-to-price ratio of 21.7. The city of Denton also taxes property 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 median home price here is just $219,000, and the median monthly rent is $950, up 4.5% month-over-month, which puts the rent-to-price ratio at 19.2.

Then, vacancy rates are at roughly 7.3%, unemployment rates typically hover around 4%, and Des Moines’ population is on the rise. Census estimates released in March 2025 indicate that the city added more than 44,000 new residents between 2020 and 2024, representing a growth rate of over 6%.

The state of Iowa is also landlord-friendly, with no rent control and a relatively generous limit of two months’ rent for security deposits. Landlords can also initiate the eviction process after a brief, 3- to 7-day notice. Additionally, landlords will find lower property tax rates and home insurance costs here.

In terms of the city itself, Des Moines is home to attractions like the Botanical Gardens and the Pappajohn Sculpture Park. Additional improvements, such as the Waterfront Marina Steps Project and the aptly named Grand Experience Project, are forthcoming.

Greenville, South Carolina

Located in the picturesque upstate region of South Carolina, the city of Greenville is experiencing rapid population growth. It’s located near some of the state’s top universities and features a variety of attractions, including Falls Park, a vibrant downtown, and museums. More improvements, like road repaving and a multimillion-dollar renovation of City Hall, 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 home sales price of $463,000. The median rent, meanwhile, is $1,570, providing a rent-to-price ratio of 24.6.

With that said, the city’s median property taxes are just 0.88%. Greenville also boasts a robust economy, with an unemployment rate of approximately 4% and a diverse range of high-paying jobs available across various industries, including healthcare, manufacturing, and tourism. Plus, South Carolina has relaxed landlord-tenant laws, 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 skyrocketing home prices, Tucson is an often-overlooked rental market for landlords looking to establish a foothold. Median property taxes are low here, at less than 0.8%, and the median home price clocks in at $312,000. The median rent is $1,059, resulting in a rent-to-price ratio of 24.5.

Perhaps Arizona’s greatest advantage is its landlord-friendly laws, which prohibit rent control statewide and allow for a five-day eviction process due to nonpayment of rent. The population 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 local school districts, as well as attractions 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 100-Acre Wood and Jacobs Park.

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 landlord-tenant laws 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 property management software to manage your rental properties from afar. Several companies offer programs to help landlords expand their portfolios and manage properties, regardless of location.

This story was produced by TurboTenant and reviewed and distributed by Stacker.