BEST U.S CITIES TO BUY RENTAL PROPERTIES AND INVEST AS A REAL ESTATE INVESTOR
(PERCENT OF POPULATION THAT ARE RENTERS)
Columbus, Ohio 55.30%
Raleigh, North Carolina 48.50%
Dallas, Texas 59.00%
Houston, Texas 45.00%
Austin, Texas 51.30%
Boise, Idaho 43.00%
Durham, North Carolina 49.80%
Phoenix, Arizona 45.60%
Lafayette, Indiana 52.90%
Tallahassee, Florida 55.00%
Clarksville, Tennessee 51.90%
Berkeley, California 57.10%
Cambridge, Massachusetts 65.20%
Lafayette, Indiana 64.80%
Tempe, Arizona 59.40%
Atlanta, Georgia 56.50%
Las Vegas, NV 47.30%
Orlando, Florida 64.60%
Gainesville, Florida 54.50%
Seattle, Washington 54.30%
College Station, Texas 54.70%
Clarke County, Georgia 57.50%,
Killeen, Texas 56.25%
Los Angeles, California 55.00%
Champaign, Illinois 52.50%
Salinas, California 53.20%
Ann Arbor, Michigan 54.80%
New York City, New York 65.10%
Flagstaff, Arizona 52.60%
Bozeman, Montana 56.90%
Why renter percentage matters
The figures above show each city’s share of households that rent. A high renter percentage signals durable tenant demand, shorter vacancy, and pricing power on lease-up — the foundation of a stable rental. Markets anchored by universities, hospitals, military bases, and major employers (think Columbus, Raleigh, Austin, and the Texas metros) tend to combine renter depth with job-driven rent growth.
Cash flow vs. appreciation
No single city wins on every axis, so decide what you’re solving for:
- Cash flow first — Midwest and Sun Belt metros (Columbus, Memphis-adjacent markets, Indianapolis, Houston) often deliver higher yield-on-cost at a lower basis.
- Appreciation first — high-growth metros (Austin, Raleigh, Boise, Seattle) trade current yield for long-run equity growth.
- Landlord law — landlord-friendly states keep turn costs and timelines predictable; tenant-protective states (CA, NY, OR, NJ) demand more conservative vacancy and turn assumptions.
How to use this list
Use it to screen, then underwrite the submarket: rent comps, property-tax load at post-close assessed value, insurance, and the local rent-control posture. When a deal clears coverage, a DSCR loan qualifies it on rental cash flow — not your W-2 — with cash-out to 75% LTV for BRRRR exits. Compare programs by state on our real estate financing hub.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access . All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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