Rising interest rates, shifting population demographics, and local economic development are reshaping the best cities for real estate investments in 2025. While not all markets offer similar returns, some cities can set the pace on affordability, rental demand, job growth, and future appreciation.
Whether you’re new to real estate investments or a seasoned professional, it’s worth identifying cities that offer you growth opportunities. I’ve found the top 10 best places to buy rental property where real estate investors can uncover compelling opportunities in 2025.
Top cities to invest in
| Average listing price | Rental vacancy rate | Typical monthly mortgage payment | |
|---|---|---|---|
| Dallas, Texas | $400,383 | 10.60% | $2,715 |
| Miami, Florida | $590,090 | 5.80% | $3,020 |
| Phoenix, Arizona | $416,728 | 11.50% | $2,495 |
| Charlotte, North Carolina | $398,572 | 12.70% | $2,225 |
| Indianapolis, Indiana | $227,557 | 6.00% | $1,795 |
| Tampa, Florida | $400,000 | 6.00% | $2,580 |
| Colorado Springs, Colorado | $456,886 | 5.00% | $2,495 |
| Cleveland, Ohio | $113,400 | 4.90% | $1,290 |
| Atlanta, Georgia | $392,471 | 6.90% | $1,789 |
| Nashville, Tennessee | $436,048 | 7.30% | $2,663 |
1. Dallas, Texas
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Average days on market:
45 days
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Average monthly rental cost:
$1,600
Dallas continues to attract real estate investors due to its stable job market, diverse economy, and rapidly expanding population. It’s one of the best cities for real estate investments due to corporate relocations and the high concentration of tech, finance, and healthcare in the area. Housing values tend to be steady compared to nationwide cooling patterns, and rental demand remains robust due to the continued influx of new residents.
In the coming years, the metroplex is expected to grow consistently, underpinned by infrastructure developments and housing growth. Suburbs with prospects for future transit growth or those near key employment centers can be attractive to investors as a source of long-term appreciation and rental income.
2. Miami, Florida
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Average days on market:
80 days
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Average monthly rental cost:
$2,999
As a notable hot spot in southern Florida, Miami recently rose to the top of the list for investors looking to capitalize on the changing landscape of residents looking for a warmer climate. Miami still offers pockets of up-and-coming neighborhoods that are attractive to those seeking a change of scenery from the typical South Beach hot spots.
Miami’s oceanfront location and upscale gloss make it one of the best places to buy rental property because of prime pricing, but pockets of affordability remain in emerging enclaves. For investors, focusing on the area immediately around downtown or in neighborhood revitalization zones could have long-term promise. Keep an eye on local rent control regulations when entering this market.
Investors looking to take a more passive approach to investing can participate in Sold.com’s cash investor program. The program connects investors with sellers looking to obtain market value on their properties that need a little extra TLC. Investors will then make improvements to the properties to turn them into rental properties for income.
However, with this program, investors have a much shorter time to make an offer, as sellers expect offers within two days of listing.
3. Phoenix, Arizona
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Average days on market:
51 days
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Average monthly rental cost:
$1,850
This bustling town in Arizona offers a blend of affordability and opportunity, making it one of the best places to invest in real estate. Phoenix leads one of the more investor-welcoming housing markets in the country. The metropolis had consistent employment growth in healthcare, logistics, and tech employment sectors during the last year. Housing demand increased during the last year, pushing rent upward, though price appreciation is slowing down.
Expect consistent demand in the future due to the growth of residents coming in from more highly priced proximate states. Value opportunity exists in single-family rentals in the far suburbs, where competition is low and rent yields are robust. Track development pipelines and stay away from areas that show oversupply indicators.
4. Charlotte, North Carolina
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Average days on market:
43 days
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Average monthly rental cost:
$1,915
Charlotte’s economy is supported by its strong financial sector, stable population growth, and expanding technology base. As one of the best cities for investment properties, Charlotte strikes a balance between affordable housing and newer development, making it attractive to both buyers and renters. Future market conditions are stable price appreciation and ongoing rental demand, especially in areas near business parks and universities.
What will fuel future growth in the city will be spurred by planned future infrastructure development and corporate relocation. It will be profitable to concentrate on multi-family properties in pedestrian-friendly areas that have good public transit links in order to maximize cash flow and ultimate value.
5. Indianapolis, Indiana
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Average days on market:
43 days
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Average monthly rental cost:
$1,915
Indianapolis stands out as one of the best cities for real estate investments due to its affordability, sound economy, and increasing popularity as a destination of choice among remote employees. The cost of living remains below the national average, and rental yields are also good. Activity in the market remains stable, supported by modest appreciation in homes and limited supply.
Demand is expected to continue in the form of first-time buyers and renters priced out of larger metros. Buyers are also cautioned to look at areas zoned for development or near universities and hospitals. Turnkey and value-add sales are also common in the market and can fit different types of investment strategies.
6. Tampa, Florida
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Average days on market:
71 days
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Average monthly rental cost:
$2,000
The Tampa housing market remains one of the best places to buy rental property due to the high demand for renting and relative affordability. Activity in the economy and infrastructure development in the area make it attractive to investors.
Activity by private equity players in the residential market, however, also explains the rent surge, as 61% of the renters in the area pay $30 or more of their income in rent and utilities, as reported by The Private Equity Stakeholder Project (PESP). These investors are encouraged to target areas near transit points and to consider the impact of short-term rent control.
7. Colorado Springs, CO
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Average days on market:
62 days
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Average monthly rental cost:
$1,650
Colorado Springs continues to attract investors in 2025 due to its strong population growth and high quality of life. Intensive military presence, a growing tech sector, and proximity to Denver give the city a boost, and thereby, it enjoys a stable housing demand base. Home values have steadily increased, and rent demand is also high, due to military families and remote workers who have moved in due to its affordability.
Low supply levels and ongoing development activity create opportunities for investors to look at emerging areas or developments along high-employment corridors. Single-family rentals and multi-units can generate good returns, especially in areas around Colorado Springs’ up-and-coming downtown district.
8. Cleveland, Ohio
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Average days on market:
33 days
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Average monthly rental cost:
$1,300
Cleveland provides investors the highest rent yield ratio and best affordability of any major US metro, making it the top city for real estate investment in 2025. The median house price and low monthly median rent keep it affordable, even for beginning investors.
Strong rental demand, driven by hospitals, universities, and the downtown area, is supported by a sound base of renters and low living costs. Area redevelopment is also creating new opportunities for investors. For those seeking cash flow and appreciation, the Cleveland market provides a strategic foothold at more modest capital requirements and the potential for strong returns.
Once a rental property is obtained, investors can leverage platforms like Baselane to help with property management. It’s an all-in-one financial management solution for private rental property owners, landlords, and investors. It combines modern banking functionality with cost management, automated processing of rent payments, and reporting on performance in one dashboard.
For investors with more than one property or unit, Baselane is a structured, technology-based approach that is cost-efficient and well-organized without the need to switch between many different tools.
9. Atlanta, Georgia
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Average days on market:
47 days
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Average monthly rental cost:
$1,895
If you’re looking for the best cities to buy rental properties, Atlanta remains one of the hottest investor markets, driven by rapid population growth, a diversified economy, and employment growth. It continues to attract residents and investors, due to its relative affordability compared to coastal metros. Home prices have remained stable, and rent demand is boosted by young professionals, students, and families moving in.
The suburbs of Atlanta will be good starting points for investors and will appreciate as the metro grows. Developers and investors will need to keep an eye on areas that have future infrastructure plans or corporate developments in the works. Value-add plays and long-term rentals will both work in Atlanta’s transformational market.
10. Nashville, Tennessee
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Average days on market:
72 days
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Average monthly rental cost:
$2,050
The housing market in Nashville continues to look attractive because it’s supported by a growing creative economy and a good healthcare sector. Rent demand remains resilient in both the short-term and longer-term markets, led by markets including Germantown and East Nashville. Housing values have risen, even if at a diminished rate in the last few quarters, leaving both cash flow and longer-term equity potential available in the market.
Cultural attractions of the city, combined with growing job opportunities, keep renters and buyers alike scrambling to reach the city in growing numbers. By investing in multi-unit housing or turnkey single-family property in transit-oriented markets, investors can gain. Zoning reform and development incentives also bring opportunities in new areas of investment potential.
Methodology
To find the best cities for real estate investments in 2025, we analyzed a mix of residential real estate information, economic data, and investment guidelines. Cities were selected based not only on a mix of average list prices, vacancy rates, average mortgage payments, and price-to-rent ratios, but also other trends that affect the sustainability of a long-term investment, such as population growth, the strength of the job market, diversity of the economic base, and ongoing development or revitalization initiatives.
Data employed throughout our analysis was derived from publicly accessible information sources such as Zillow, the National Association of Realtors (NAR), the U.S. Census Bureau, city-realtor association reports, and economic projections. Markets that indicated consistent demand, good affordability measures, as well as potential appreciation further down the road, took priority in our list.
Frequently asked questions (FAQs)
What makes a city a good place for real estate investment?
Strong property markets have a typical set of characteristics, such as a growing population, a stable and diversified economy, and a growing demand for housing. Other factors also need to be looked into, such as a low vacancy and favorable rent price-to-ratio, as these result in more stable rent yields. Also, look into potential future appreciation, which comes in the shape of infrastructural developments, like new transport facilities or office complexes. Regulations and trends likewise affect investment potential, such as favorable property taxes and regulations, and a healthy business climate.
How do I decide which city is right for my investment strategy?
To choose the best city, first establish your investment goals. For example:
- Do you want recurring monthly cash flow? Find cities with high demand and low property prices, generating more yields in rent.
- Are you looking at appreciation in the longer time horizon? Find markets that have projected growth, new developments, and home appreciation.
It also benefits you to look at the regional economy, comprising job growth, population, and employment diversity, versus property-level indicators, including days on the market, levels of active listings, and historical price appreciation. Always also look at the landlord’s and renter’s regulations, and the short-term renting regulations, as these will also directly affect your profit margins.
Is it better to invest in growing cities or undervalued markets?
Most investors hedge their risk by investing in a mixture of both, as these each have their pros and cons. Ultimately, it depends on your risk appetite and investment objectives. Growing cities like Atlanta, Charlotte, or Dallas typically have high potential for appreciation due to new business growth, growing demand, and outdated infrastructures that need upgrading — but often come at a more premium price. Meanwhile, undervalued cities like Cleveland or Indianapolis typically have lower points of entry and more favorable price-rent ratios. These might develop more gradually, but they enable you to risk less and get your money back sooner.
Bringing it all together
Investing in the housing market in 2025 is highly divergent across the United States. Within each of the best places to buy rental property on our list, there are a variety of benefits in affordability, rent demand, employment growth, and long-term appreciation. Whether in the high-growth metros of Phoenix and Dallas or the value markets of Indianapolis and Cleveland, investors and real estate agents must choose from a broad array of opportunities, depending on intent and risk spectrum. Choosing the correct city — and the correct property — is the key to achieving long-term investment success.
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