Cities that come out on top of the list of the best places to invest in real estate and make for a prime location for real estate investors to buy a rental property have three elements in common: job growth, population growth, and affordability.
Real estate investors and real estate agents are always on the lookout for the best real estate investments and vying for rental properties in strategic locations that are also priced below market value to reap the positive cash flow returns. There are many cities in the United States to buy rental property right now and reap off the benefits in no time. Let us get started!
Related: 4 Multifamily Real Estate Predictions for 2021
10 Best Places to Invest in Real Estate
1. Orlando, Florida
- 1-Year Job Growth Rate: 4.6%
- Unemployment Rate: 4.5%
- Median Property Price: $311,952.04
- Traditional Rental Income: $1,749.58
- Airbnb Rental Income: $904.18
- Traditional CoC Return: 2.52 %
- Airbnb CoC Return: 2.9 %
- Traditional Cap Rate: 2.52 %
- Airbnb Cap Rate: 2.9 %
Aside from the good weather and nice beaches, Orlando has many reasons to take the number one spot for the best places to invest in real estate this year. Why you might ask? For one, housing prices are low, and many home seekers are opting to rent instead of buy. There is a good chance to find and buy fully renovated properties in good neighborhoods just under $120,000. Moreover, property taxes and insurance rates are low, plus there is no income tax. With growing employment rates and an affordable cost of living, Orlando is attracting many job seekers, baby boomer retirees, and students who want to live in this city and enjoy a high quality of life at a reasonable cost.
2. Tampa, Florida
- 1-Year Job Growth Rate: 3.6%
- Unemployment Rate: 4.6%
- Median Property Price: $346,473.01
- Traditional Rental Income: $1,760.57
- Airbnb Rental Income: $1,639.11
- Traditional CoC Return: 2.65%
- Airbnb CoC Return: 3.85%
- Traditional Cap Rate: 2.65%
- Airbnb Cap Rate: 3.85%
Tampa Bay is an economic powerhouse with a strong focus on job growth, specifically in finance and healthcare. With a booming economy comes a population of over 4 million people. This metropolitan city is one of the best places to invest in real estate for both long and short-term rentals.
3. Jacksonville, Florida
- 1-Year Job Growth Rate: 3.7%
- Unemployment Rate: 4.7%
- Median Property Price: $272,640.63
- Traditional Rental Income: $1,160.46
- Airbnb Rental Income: $837.63
- Traditional CoC Return: 1.79%
- Airbnb CoC Return: 1.3%
- Traditional Cap Rate: 1.79%
- Airbnb Cap Rate: 1.3%
Jacksonville is known for its world class health care system, growing job environment, and most importantly an affordable cost of living that makes the city one of the best places to invest in real estate today. Jacksonville is ranked third on Forbes’ list of the best cities for jobs in the US this year.
4. Cape Coral, Florida
- Median Property Price: $299,375.00
- Traditional Rental Income: $1,662.46
- Airbnb Rental Income: $2,075.62
- Traditional CoC Return: 3.3%
- Airbnb CoC Return: 4.96%
- Traditional Cap Rate: 3.3%
- Airbnb Cap Rate: 4.96%
Ranked as the 10th fastest growing city in the country, Cape Coral is the perfect destination for vacationers as well as for those buying rental properties. This city not only attracts tourists but also many home seekers and retirees. Consider Cape Coral one of the best places to invest in real estate for Airbnb and traditional investments.
Related: 6 Real Estate Market Trends of 2017
5. Pittsburgh, Pennsylvania
- Unemployment Rate: 4.7%
- Median Property Price: $189,900.00
- Traditional Rental Income: $1,044.93
- Traditional CoC Return: 1.62%
- Traditional Cap Rate: 1.62%
With a growing economy and housing market, Pittsburgh is one of the best places to invest in real estate this year. Investors are taking full advantage of this market due to its low crime rate and a steady growth in home value year over year.
6. Huntsville, Alabama
- 1-Year Job Growth Rate: 1.9%
- Unemployment Rate: 5.3%
- Median Property Price: $224,500.00
- Traditional Rental Income: $1,164.58
- Traditional CoC Return: 3.11%
- Traditional Cap Rate: 3.11%
Huntsville is another ideal long term investment plan due to its steady job market and population. Real estate investors enjoy the lower tax rates and higher rental income on their real estate investment properties. You can expect high ROI on your rental properties due to the affordable housing prices in this city.
7. Houston, Texas
- 1-Year Job Growth Rate: 0.2%
- Unemployment Rate: 4.9%
- Median Property Price: $393,678.16
- Traditional Rental Income: $2,262.93
- Airbnb Rental Income: $1,022.76
- Traditional CoC Return: 4.8%
- Airbnb CoC Return: 1.8%
- Traditional Cap Rate: 4.8%
- Airbnb Cap Rate: 1.8%
With a growing economy and a reasonable cost of living, Houston is one of the best places to invest in real estate for home seekers and real estate investors.
8. Cleveland, Ohio
- Unemployment Rate: 4.7%
- Median Property Price: $180,993.67
- Traditional Rental Income: $1,310.89
- Airbnb Rental Income: $729.76
- Traditional CoC Return: 3.5%
- Airbnb CoC Return: 2.47%
- Traditional Cap Rate: 3.5%
- Airbnb Cap Rate: 2.47%
With its fast moving economy, Cleveland is a surefire way to earn real estate investors high cash flow returns and an appreciation on their real estate investments.
Related: How Can You Be Making Money in Real Estate in Expensive Cities?
9. Cincinnati, Ohio
- 1-Year Job Growth Rate: 1.31%
- Unemployment Rate: 4.3%
- Median Property Price: $265,908.59
- Traditional Rental Income: $1,274.09
- Airbnb Rental Income: $693.15
- Traditional CoC Return: 2.96%
- Airbnb CoC Return: 1.88%
- Traditional Cap Rate: 2.96%
- Airbnb Cap Rate: 1.88%
A growing metropolitan area, Cincinnati is attracting many job seekers and investors due to its low cost of living and low housing prices. Consider this city one of the best places to invest in real estate for long and short term investment plans.
10. Chicago, Illinois
- 1-Year Job Growth Rate: 1.8%
- Unemployment Rate: 6.6%
- Median Property Price: $424,686.60
- Traditional Rental Income: $2,040.87
- Airbnb Rental Income: $1,953.87
- Traditional CoC Return: 1.11%
- Airbnb CoC Return: 1.47%
- Traditional Cap Rate: 1.11%
- Airbnb Cap Rate: 1.47%
Considered one of the best places to invest in real estate, Chicago is a homerun for investors due to the low housing prices and strong appreciation on rental properties. You can buy income property at reasonable prices while earning positive cash flow in return.
If you are looking for a location for your next real estate investment, you have come to the right place. This list of the 10 best places for to invest in real estate at the moment shows you all the optimal locations to buy your next rental property. Once you’ve settled on a city, make sure to check out Mashvisor’s rental property calculator to find the best neighborhood and the best income property.