Updated Rates as of August 2026
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 at 5.75%–10.5% qualifies it on rental cash flow — not your W-2. Purchase and rate-and-term leverage go to 85% LTV, and cash-out goes to 80% LTV, in select markets for qualified borrowers. Compare programs by state on our real estate financing hub.
Top rental markets by investor thesis (2026)
| City | Renter % | Median rent band | Investor thesis |
|---|---|---|---|
| Columbus, OH | 55% | $1,300–$1,700/mo | Midwest cash flow, Ohio State + healthcare jobs |
| Raleigh, NC | 49% | $1,600–$2,100/mo | Tech in-migration, landlord-friendly state |
| Houston, TX | 45% | $1,400–$1,900/mo | No state income tax, energy + medical employment |
| Orlando, FL | 65% | $1,700–$2,300/mo | Tourism workforce + theme-park employment base |
| Atlanta, GA | 57% | $1,550–$2,000/mo | Corporate relocations, deep submarket diversity |
| Indianapolis, IN | ~48% | $1,200–$1,600/mo | Low basis, strong BRRRR spreads |
Worked example: Columbus duplex DSCR purchase
| Line item | Amount |
|---|---|
| Purchase price | $185,000 |
| Down payment (25%) | $46,250 |
| Loan amount | $138,750 at 7.00% |
| Combined rent | $2,200/mo |
| PITIA | ~$1,420/mo |
| DSCR | ~1.55 |
| Cash-on-cash (year 1) | ~8–10% before appreciation |
State guides: DSCR loans North Carolina · Georgia DSCR investor guide · South Carolina landlord guide · hard money lenders Indianapolis
Landlord-law screening before you buy
Renter percentage alone does not make a market landlord-friendly. Cross-reference:
- Eviction timeline and cost — tenant-protective states require longer vacancy assumptions
- Rent control / stabilization — Berkeley, NYC, and Cambridge limit upside
- Property tax reassessment — Texas and Florida reassess at sale; model post-close tax
- Insurance — coastal and hail markets inflate NOI
Pre-qualify a rental acquisition · mastering DSCR calculation · (833) 264-7776
Investors scaling beyond ten doors hit conventional Fannie/Freddie caps — DSCR has no portfolio limit, which is why multi-market sponsors on this list often finance door-by-door through asset-based programs rather than personal-income underwriting.
2026 rental market filters — beyond headline yield
| Filter | Why it matters for DSCR |
|---|---|
| Insurance load | FL/Gulf/coastal can drop DSCR 0.10x+ |
| Landlord law | RLTO, rent control, just-cause = opex |
| Job diversity | Single-employer towns = vacancy risk |
| Property tax reassessment | TX/FL purchase can spike year-two tax |
Target 1.15+ pro forma DSCR at 5.75%–10.5% before acquisition — not 1.0 best case. DSCR calculator · best cities to flip · scale portfolio DSCR.
HUD rent benchmarks for the cities on this list
The renter shares at the top of this guide are a screen, not a rent roll. Lafayette, Indiana appears twice, with two different shares. Do not average those lines. Underwrite the block, then check a published rent benchmark.
HUD Fair Market Rents are 40th percentile gross rents. FY 2027 figures took effect October 1, 2026 (Federal Register; HUD FMR page).
| Market | County used | FY 2027 2-bedroom FMR |
|---|---|---|
| Columbus | Franklin, OH | $1,602 |
| Raleigh | Wake, NC | $1,689 |
| Houston | Harris, TX | $1,497 |
| Orlando | Orange, FL | $1,959 |
| Atlanta | Fulton, GA | $1,762 |
| Indianapolis | Marion, IN | $1,536 |
| Austin | Travis, TX | $1,817 |
| Phoenix | Maricopa, AZ | $1,734 |
| Boise | Ada, ID | $1,540 |
| Dallas | Dallas County, TX | $1,807 |
A two-bedroom FMR is not the rent for a house with a garage and a yard. It is a floor. If your lease is far above it, the DSCR file needs the lease, not a screenshot of a listing site. If your lease is below it, do not assume you can mark the unit to the FMR on day one.
Illustration: Houston SFR against the FMR, not against a slogan
Illustration only. Purchase price $220,000 in Harris County. Loan is 80% of price, or $176,000, inside the 85% purchase cap for qualified borrowers in select markets. Rate in the illustration is 7.50% on a 30-year payment, inside the 5.75%–10.5% DSCR band.
Principal and interest are about $1,231. The illustration uses $280 a month for tax and $160 for insurance. Those two lines are assumptions, not a Harris County quote. PITIA is about $1,671.
HUD’s two-bedroom FMR for the Houston metro is $1,497. Coverage at that rent is about 0.90. The same payment at a $1,900 rent, near the top of the Houston band earlier on this guide, is about 1.14. The house did not change. The rent assumption did. Get the insurance quote before you treat 1.14 as real. Coastal and hail markets move that line faster than rent.
A DSCR refinance closes in about 14 business days once the file is complete. Fix-and-flip and bridge acquisition loans close in 7–10 business days at 8.99%–13.5%. Do not schedule a rental closing on the flip calendar. Run the ratio in the DSCR calculator with your own tax and insurance.
New houses these tenants can also tour
Census permit data, year to date through August 2026, shows how much new one-unit supply is in the pipeline (Building Permits Survey). Valuation is reported construction cost, not a resale price.
| County | 1-unit permits | Average reported valuation |
|---|---|---|
| Harris (Houston) | 11,503 | $317,941 |
| Wake (Raleigh) | 5,996 | $311,163 |
| Maricopa (Phoenix) | 10,330 | $385,387 |
| Travis (Austin) | 3,801 | $273,155 |
| Orange (Orlando) | 2,856 | $377,476 |
| Franklin (Columbus) | 1,295 | $413,908 |
| Fulton (Atlanta) | 1,488 | $340,973 |
| Ada (Boise) | 3,514 | $332,023 |
| Marion (Indianapolis) | 744 | $333,394 |
Houston and Phoenix are adding houses by the thousands in this window. A tired rental has to beat a new one on price or location. Indianapolis authorized far fewer one-unit homes. A renovated rental there faces less new-product competition, which is why the basis bands earlier on this guide can still produce a spread. Vacancy assumptions should follow the permit count, not the renter-share headline.
Owner-occupant rates versus investor DSCR rates
Freddie Mac reported a 7.28% average 30-year fixed rate as of October 1, 2026, up from 7.03% the week before and 6.34% a year earlier. The 15-year average was 6.60% (PMMS).
That survey is a conventional owner-occupant average. It is not a DSCR quote. Jaken Finance Group prices investment DSCR loans from 5.75%–10.5% based on the property, the ratio, and the borrower file. A 7.28% conventional headline can sit inside that band or outside it. Price your deal from a term sheet, not from the weekly mortgage article.
A screen you can actually finish
Use this order before you wire earnest money:
- Pick the job base. A campus, a hospital, and a single factory are three different vacancy stories.
- Pull the FY 2027 two-bedroom FMR for the county. Treat it as a floor.
- Quote insurance in the LLC name. Prior-owner premiums are not your premium.
- Set tax at the post-sale assessment if that state reassesses on transfer.
- Target 1.15 DSCR or better at a rate inside 5.75%–10.5%, not a 1.0 ratio at the lowest advertised rate.
- If the property needs work first, use fix-and-flip or bridge capital at 8.99%–13.5%, then refinance.
Jaken Finance Group lends in all 50 states on non-owner-occupied property. Start with the loan fit or call (833) 264-7776 with the rent, the tax, and the insurance quote in one note.
Migration and job growth — 2026 data sources
Cross-check yield lists against primary data:
| Source | Use |
|---|---|
| BLS metro employment | Job diversity |
| Census QuickFacts | Population trend |
| FEMA flood maps | Insurance load |
| State landlord associations | Regulatory friction |
Target 1.15+ DSCR at 5.75%–10.5% before close. Best flip cities · Wyoming markets · DSCR calculator.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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.
Review our Privacy Policy and Terms of Service.
Click Here to Read our FAQs
Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196