10 Best Cities to Buy a Rental Property in the USA [2025]

By: ROS Team

Investing in rental properties is a proven and reliable strategy for establishing passive income and simultaneously building assets that are appreciating continuously. However, the success of your investment depends on where the property is located.

In the United States, you have a diverse range of cities with strong rental markets and with their unique advantages and challenges. In this article, we’ll explore the best places to buy rental property in the USA.

These Are The Best Cities to Buy Rental Property in USA

1. Austin, Texas

Median Home Price: $517,589
Average Rent: $1,800/month (2-bedroom apartment), $1,500/month (1-bedroom apartment)
Rental Profit: 5-7%
Population Growth: 5% annually (one of the highest in the nation)

Austin has been one of the best places to buy rental property in the USA for years, as it is also among the fastest-growing cities in the U.S. The reason is its booming tech industry, healthy job market, modern culture, and rapid population growth, the important one.

The presence of tech giants like Tesla, Apple, and Google in Austin has made it a top choice for young professionals, families, and students. These companies attract high-paying renters in the city.

When it comes to lifestyle Austin is known for its live music scene, outdoor activities, and food culture. And when it comes to a reliable job market, meaning a consistently lower unemployment rate than the national average, it becomes difficult to resist such a city.

All these factors collectively make Austin, a city with a strong demand for rental properties.

The neighborhoods to consider in Austin are Round Rock(family-friendly), Downtown Austin (luxury apartments and condos), and East Austin(a mix of new and old homes).

The downside of Austin’s rental market is its rising home prices which may make it harder to find affordable investment properties. Other than that the relatively high property taxes in Texas can take a part of your rental income.

Austin, Texas

2. Nashville, Tennessee

Median Home Price: $429,091
Average Rent: $1,600/month (2-bedroom apartment) $1,450/month (1-bedroom apartment)
Rental Yield: 6-8%
Population Growth:8% annually

The capital city of Tennessee, Nashville, known for its vibrant music scene and often referred to as “Music City,” offers more than just country music. From the rapid growth of the city, and a strong economy to affordable housing Nashville has every ingredient of a high-demand rental market.

Nashville’s diverse industry of healthcare, education, and music besides the state’s business-friendly policies like no state income tax makes Nashville a lucrative market for investors.

The city also attracts millions of tourists annually, providing investors an extra opportunity to utilize their property for short-term rentals like on Airbnb.

The presence of big employers like Vanderbilt University Medical Center, HCA Healthcare, Bridgestone Americas, and Asurion are sources of stable employment opportunities for the city and also ensure the steady influx of residents looking for rental properties, making it a great city for real estate investors.

The neighborhoods to consider are Germantown(a mix of new and old homes), The Gulch(popular with young professionals), and Brentwood(suburban, family-friendly).

The challenge here can be fierce competition for properties due to the city’s popularity.

Nashville, Tennessee

3. Orlando, Florida

Median Home Price: $378,740
Average Rent: $1,700/month (2-bedroom apartment) $1,550/month (1-bedroom apartment)
Rental Yield: 6-9%
Population Growth: 2% annually

Orlando is a top choice for real estate investors because of its strong tourism industry, increasing population, reliable job market, and encouraging tax environment. The significant presence of Lockheed Martin and NASA besides tech startups and big companies ensures a steady flow of job seekers and that is the foundation of a healthy rental market.

Home to Walt Disney World, Universal Studios, and many other tourist spots, Orlando attracts over 70 millions tourists annually, making short-term rentals highly profitable.

Florida’s tax-friendly policies like no state income tax policy makes Orlando even more lucrative for investors.

Lake Nona (high-end community), Winter Park (historic area with charming homes), and Dr. Phillips (luxury rentals and vacation homes) are the neighborhoods for investors to consider.

There are also a couple of risks associated with Orlando’s rental market. The market can be seasonal, with fluctuations in rental income during off-peak months. Hurricane risks also cost additional insurance expenses.

Orlando, Florida

4. Phoenix, Arizona

Median Home Price: $412,889
Average Rent: $1,650/month (2-bedroom apartment) $1,400/month (1-bedroom apartment)
Rental Yield: 5-7%
Population Growth: 2% annually

Phoenix is one of the fastest-growing cities in the U.S. over the past decade, thanks to its affordable homes, job and business opportunities and warm climate. Unlike other big cities, Phoenix has relatively affordable home prices yet high rental demand.

The city’s diverse economy , with growth in tech, healthcare, and manufacturing attracts job seekers while the city’s warm climate brings retirees to the city. In short the city has its way of maintaining rental demand.

In Phoenix the neighborhoods to consider for investors are Scottsdale (luxury properties and high-end rentals), Chandler (family-friendly suburb), and Downtown Phoenix (popular in young professionals)

The summer at its peak can lead to higher maintenance costs and cause water scarcity, a long-term issue in the region.

Phoenix, Arizona

5. Atlanta, Georgia

Median Home Price: $388,548
Average Rent: $1,750/month (2-bedroom apartment) $1,600/month (1-bedroom apartment)
Rental Yield: 6-8%
Population Growth: 5% annually

Atlanta, the economic hub of the Southeast, offers affordable housing and a reliable rental market. Home to Fortune 500 companies like Coca-Cola, Delta Air Lines, and Home Depot, Atlanta attracts a steady stream of professionals.

The city’s rich history, arts scene, and diverse neighborhoods make it a desirable place to live. And that’s all at a lower cost of living compared to other major cities.

The neighborhoods to consider for investment in Atlanta are Buckhead (luxury area with high-end rentals), Midtown (popular among professionals and students), and Decatur (family-friendly suburb)

Traffic congestion and higher property crime rates than the national average in some areas are a couple of slight issues with the city.

Atlanta, Georgia

6. Raleigh, North Carolina

Median Home Price: $435,263
Average Rent: $1,600/month (2-bedroom apartment) $1,350/month (1-bedroom apartment)
Rental Yield: 5-7%
Population Growth: 2% annually

Raleigh is a region known for its tech and research industries as it’s a part of the Research Triangle. Raleigh is about a strong job market, affordable housing, and a quality of life. The parks, cultural amenities, and low crime rate are a big plus of the city.

The presence of top universities like Duke and UNC and big tech companies like IBM and Cisco attracts high-income renters there to not let the city face a scarcity of tenants.

North Hills (high-end rentals), Cary (family-friendly suburb), and Downtown Raleigh (a growing area with new developments and young professionals)

The rising home prices may cause difficulty in finding affordable investment properties as there’s significant competition for properties.

Raleigh, North Carolina

7. Tampa, Florida

Median Home Price: $374,105
Average Rent: $1,800/month (2-bedroom apartment) $1,500/month (1-bedroom apartment)
Rental Yield: 6-8%
Population Growth: 7% annually

Tampa is a coastal city with a booming economy, a growing population, and a strong demand for rental properties. Its warm climate, affordable housing, and tourism industry make it a top choice for real estate investors.

Tampa’s beaches, cultural attractions, and proximity to Orlando bring millions of visitors annually, making short-term rentals a viable option. The city’s healthcare, finance, and tech sectors are growing and attracting more professionals and families. Florida’s no state income tax policy besides other tax-friendly policies turned Tampa into an even more desirable place for investors.

The neighborhoods to consider for investment purposes are South Tampa (luxury homes and high rental demand), Downtown Tampa (a growing urban center with new developments and young professionals) and Wesley Chapel (family-friendly suburb).

The challenges to tackle here are the additional insurance costs due to hurricane risks and competition for properties can be intense due to the city’s popularity.

Tampa, Florida

8. Charlotte, North Carolina

Median Home Price: $393,531
Average Rent: $1,600/month (2-bedroom apartment) $1,400/month (1-bedroom apartment)
Rental Yield: 5-7%
Population Growth: 6% annually

Charlotte is a favorite place of financial institutions, hosting major banks like Bank of America, Truist Financial and Wells Fargo. Such institutions make Charlotte a financial hub with a strong economy, affordable housing, and a growing population.

Besides financial scope, Charlotte is also home to a Fortune 500 company, Duke Energy and corporate headquarter of Lowe and they all bring high-income professionals in the city.

The city’s low cost of living, diverse job market and high quality of life attracts tenants and tenants attracts investors..

The neighborhoods to consider for investing in Charlotte’s rental market are South End (popular with young professionals), University City (popular with students), Plaza Midwood (historic neighborhood), and NoDa (artsy vibe and increasing property value).

The challenges to consider are rising home prices and traffic jamming.

Charlotte, North Carolina

9. Dallas, Texas

Median Home Price: $306,959
Average Rent: $1,700/month (2-bedroom apartment) $1,450/month (1-bedroom apartment)
Rental Yield: 6-8%
Population Growth: 8% annually

Dallas is a major economic center with a diverse economy, affordable housing, and a strong rental market. Its central location and business-friendly environment make it a top choice for investors.

Dallas has a thriving economy with opportunities in tech, healthcare, and finance while affordable at the same. The city offers relatively low home prices compared to other major metros. Dallas’s cultural appeal is also a lit from arts, and dining to entertainment scenes, the city has something for everyone.

The neighborhoods to consider in Dallas for investment purposes are Uptown (luxury area with high-end rentals), Frisco (family-friendly suburb) and Deep Ellum (popular neighborhood with growing rental demand).

Relatively high property taxes and high competition for properties can be a challenge for investors in Dallas, Texas.

Dallas, Texas

10. Denver, Colorado

Median Home Price: $552,056
Average Rent: $2,000/month (2-bedroom apartment) $1,800/month (1-bedroom apartment)
Rental Yield: 4-6%
Population Growth: 5% annually

Denver is a popular city with a healthy economy, outdoor lifestyle, and growing population. Its appeal to young professionals and families makes it a great market for rental properties.

Denver’s proximity to the Rocky Mountains attracts outdoor enthusiasts and short-term rentals while the city’s tech, healthcare, and energy sectors are expanding, providing stable employment opportunities.

The cultural scene in Denver extends from arts and dining to the city’s very own craft beer scenes make it a desirable place to live.

The neighborhoods to consider for investment purposes in Denver, Colorado are LoDo (historic area with high-end rentals), Highlands (neighborhood with growing rental demand) and Stapleton (family-friendly).

The challenges in Denver are high home prices and seasonal fluctuations in rental demand can cost you time and energy.

Denver, Colorado

Best Cities to Buy Rental Property in USA: FAQs

What Makes a City a Good Place to Buy a Rental Property?

A good city for rental property investment typically has following qualities:

Strong job growth.
Strong and diverse economy.
Population growth.
Affordable home prices.
A high quality of life.
Favorable landlord-tenant laws and tax policies.

What Is Rental Yield, and Why Is It Important?

Rental yield is the annual rental income generated by a property, expressed as a percentage of its purchase price. It’s a key metric to determine the profitability of a rental property. Higher the rental yield the more profitable property is.