Top Locations 50 Best Cities for Rental Income in 2020 by Sylvia Shalhout May 16, 2020May 12, 2020 by Sylvia Shalhout May 16, 2020May 12, 2020 What are the best cities for rental income in the US housing market? Where are real estate investors generating the highest monthly rental income in 2020? If you’re trying to choose a real estate market to invest in this year, these thoughts may have crossed your mind. To answer these questions for you and bring you one step closer to figuring out where to invest in real estate for cash flow, we analyzed our rental data by city. Mashvisor’s data is taken from reliable listing sources like the MLS and Zillow. Learn more about our data methodology. Of course, high gross rental income is not all you want to look at when trying to find the best places to invest in real estate. As you should be looking for cash flow properties, you’ll want to consider the property prices and expenses. In addition to that, you’ll want to make sure that you have a general idea of how rental properties for sale will perform in a certain city. With all of this in mind, we went ahead and organized our data for rental income by city in the following way: Here, we will focus on traditional rental income. All cities listed currently have rental income properties for sale to ensure you are able to start your investment property search today. We have divided the list of the best cities for rental income by median price. This is to ensure you find a high rental income city within your budget. We’ve included other key metrics (price to rent ratio and cash on cash return). With that in mind, here are the 50 best US cities to invest in for rental property income: 50 Best Cities for Rental Income in the US Housing Market 2020 The following are the top 5 best cities for rental income in each price range. Typically, high rental income cities also have a steep median listing price which can make it hard to find affordable real estate. So be sure to check out the best cities listed in your budget range. Best Cities for Rental Income with Median Listing Price: Over $1 Million #1. San Francisco, CA Traditional Rental Income: $4,530 Median Property Price: $1,657,468 Price per Square Foot: $1,119 Price to Rent Ratio: 30 Traditional Cash on Cash Return: 0.7% #2. Santa Barbara, CA Traditional Rental Income: $4,192 Median Property Price: $1,672,769 Price per Square Foot: $856 Price to Rent Ratio: 33 Traditional Cash on Cash Return: 0.9% #3. Pasadena, CA Traditional Rental Income: $3,379 Median Property Price: $ 1,181,837 Price per Square Foot: $ 624 Price to Rent Ratio: 29 Traditional Cash on Cash Return: 0.7% #4. Irvine, CA Traditional Rental Income: $3,377 Median Property Price: $1,036,092 Price per Square Foot: $504 Price to Rent Ratio: 26 Traditional Cash on Cash Return: 0.7% #5. Los Angeles, CA Traditional Rental Income: $3,373 Median Property Price: $1,047,142 Price per Square Foot: $600 Price to Rent Ratio: 26 Traditional Cash on Cash Return: 1.1% Read the full Los Angeles real estate market report. Best Cities for Rental Income with Median Listing Price: $1 Million – $900,000 #1. Key West, FL Traditional Rental Income: $3,535 Median Property Price: $992,800 Price per Square Foot: $687 Price to Rent Ratio: 23 Traditional Cash on Cash Return: 2.1% #2. Scottsdale, AZ Traditional Rental Income: $3,361 Median Property Price: $905,527 Price per Square Foot: $320 Price to Rent Ratio: 22 Traditional Cash on Cash Return: 2.3% #3. Oakland, CA Traditional Rental Income: $2,901 Median Property Price: $902,913 Price per Square Foot: $576 Price to Rent Ratio: 26 Traditional Cash on Cash Return: 0.9% #4. North Hollywood, CA Traditional Rental Income: $2,653 Median Property Price: $902,421 Price per Square Foot: $550 Price to Rent Ratio: 28 Traditional Cash on Cash Return: 0.5% #5. Boulder, CO Traditional Rental Income: $2,470 Median Property Price: $989,380 Price per Square Foot: $514 Price to Rent Ratio: 33 Traditional Cash on Cash Return: 0.7% Best Cities for Rental Income with Median Listing Price: $900,000 – $800,000 The San Diego real estate market is one of the best cities for rental income if your budget is above $800k. #1. Torrance, CA Traditional Rental Income: $3,417 Median Property Price: $864,566 Price per Square Foot: $549 Price to Rent Ratio: 21 Traditional Cash on Cash Return: 1.4% #2. Long Beach, CA Traditional Rental Income: $3,161 Median Property Price: $842,976 Price per Square Foot: $521 Price to Rent Ratio: 22 Traditional Cash on Cash Return: 0.9% #3. San Diego, CA Traditional Rental Income: $2,623 Median Property Price: $804,753 Price per Square Foot: $522 Price to Rent Ratio: 26 Traditional Cash on Cash Return: 1.2% #4. Oxnard, CA Traditional Rental Income: $2,619 Median Property Price: $845,334 Price per Square Foot: $459 Price to Rent Ratio: 27 Traditional Cash on Cash Return: 0.8% #5. Honolulu, HI Traditional Rental Income: $2,219 Median Property Price: $890,241 Price per Square Foot: $768 Price to Rent Ratio: 33 Traditional Cash on Cash Return: 1.5% Best Cities for Rental Income with Median Listing Price: $800,000 – $700,000 #1. Huntington, NY Traditional Rental Income: $3,345 Median Property Price: $771,373 Price per Square Foot: $354 Price to Rent Ratio: 19 Traditional Cash on Cash Return: 1.2% #2. Flagstaff, AZ Traditional Rental Income: $3,166 Median Property Price: $731,558 Price per Square Foot: $258 Price to Rent Ratio: 19 Traditional Cash on Cash Return: 0.8% #3. Santa Rosa, CA Traditional Rental Income: $2,931 Median Property Price: $756,981 Price per Square Foot: $417 Price to Rent Ratio: 22 Traditional Cash on Cash Return: 1.6% #4. Jupiter, FL Traditional Rental Income: $2,871 Median Property Price: $720,409 Price per Square Foot: $332 Price to Rent Ratio: 21 Traditional Cash on Cash Return: 1.4% #5. Walnut Creek, CA Traditional Rental Income: $2,835 Median Property Price: $713,512 Price per Square Foot: $512 Price to Rent Ratio: 21 Traditional Cash on Cash Return: 0.3% Best Cities for Rental Income with Median Listing Price: $700,000 – $600,000 #1. Anaheim, CA Traditional Rental Income: $2,875 Median Property Price: $644,311 Price per Square Foot: $407 Price to Rent Ratio: 19 Traditional Cash on Cash Return: 1.5% #2. Orangetown, NY Traditional Rental Income: $2,614 Median Property Price: $697,020 Price per Square Foot: $329 Price to Rent Ratio: 22 Traditional Cash on Cash Return: 0.2% #3. Arlington, VA Traditional Rental Income: $2,530 Median Property Price: $674,989 Price per Square Foot: $484 Price to Rent Ratio: 22 Traditional Cash on Cash Return: 1.6% #4. West Linn, OR Traditional Rental Income: $2,487 Median Property Price: $621,269 Price per Square Foot: $235 Price to Rent Ratio: 21 Traditional Cash on Cash Return: 1.3% #5. Alexandria, VA Traditional Rental Income: $2,455 Median Property Price: $619,338 Price per Square Foot: $377 Price to Rent Ratio: 21 Traditional Cash on Cash Return: 1.8% Search for My Investment Property Best Cities for Rental Income with Median Listing Price: $600,000- $500,000 #1. Middletown, NJ Traditional Rental Income: $3,099 Median Property Price: $567,234 Price per Square Foot: $245 Price to Rent Ratio: 15 Traditional Cash on Cash Return: 2.1% #2. Stamford, CT Traditional Rental Income: $3,038 Median Property Price: $555,798 Price per Square Foot: $258 Price to Rent Ratio: 15 Traditional Cash on Cash Return: 1.6% #3. Chula Vista, CA Traditional Rental Income: $2,727 Median Property Price: $553,475 Price per Square Foot: $330 Price to Rent Ratio: 17 Traditional Cash on Cash Return: 2.0% #4. Brookhaven, GA Traditional Rental Income: $2,379 Median Property Price: $518,193 Price per Square Foot: $283 Price to Rent Ratio: 18 Traditional Cash on Cash Return: 1.5% #5. Rockville, MD Traditional Rental Income: $2,350 Median Property Price: $524,833 Price per Square Foot: $306 Price to Rent Ratio: 19 Traditional Cash on Cash Return: 1.9% Best Cities for Rental Income with Median Listing Price: $500,000 -$400,000 #1. Islip, NY Traditional Rental Income: $2,661 Median Property Price: $471,052 Price per Square Foot: $262 Price to Rent Ratio: 15 Traditional Cash on Cash Return: 1.5% #2. Clarkstown, NY Traditional Rental Income: $2,426 Median Property Price: $496,268 Price per Square Foot: $290 Price to Rent Ratio: 17 Traditional Cash on Cash Return: 0.5% #3. Sandy Springs, GA Traditional Rental Income: $2,268 Median Property Price: $438,725 Price per Square Foot: $193 Price to Rent Ratio:16 Traditional Cash on Cash Return: 2.0% #4. Evanston, IL Traditional Rental Income: $2,240 Median Property Price: $430,620 Price per Square Foot: $262 Price to Rent Ratio: 16 Traditional Cash on Cash Return: 0.9% #5. North Bergen, NJ Traditional Rental Income: $2,199 Median Property Price: $487,759 Price per Square Foot: $326 Price to Rent Ratio:18 Traditional Cash on Cash Return: 1.2% Best Cities for Rental Income with Median Listing Price: $400,000 – $300,000 #1. Cathedral City, CA Traditional Rental Income: $2,172 Median Property Price: $353,052 Price per Square Foot: $216 Price to Rent Ratio: 14 Traditional Cash on Cash Return: 2.8% #2. Union, NJ Traditional Rental Income: $2,163 Median Property Price: $344,519 Price per Square Foot: $183 Price to Rent Ratio: 13 Traditional Cash on Cash Return: 1.4% #3. Cherry Hill, NJ Traditional Rental Income: $2,138 Median Property Price: $313,738 Price per Square Foot: $150 Price to Rent Ratio: 12 Traditional Cash on Cash Return: 1.6% #4. Anchorage, AK Traditional Rental Income: $2,101 Median Property Price: $357,512 Price per Square Foot: $181 Price to Rent Ratio: 14 Traditional Cash on Cash Return: 2.6% #5. Chandler, AZ Traditional Rental Income: $1,963 Median Property Price: $394,311 Price per Square Foot: $202 Price to Rent Ratio: 17 Traditional Cash on Cash Return: 2.2% Best Cities for Rental Income with Median Listing Price: $300,000 – $200,000 #1. Brooklyn Park, MN Traditional Rental Income: $1,970 Median Property Price: $278,051 Price per Square Foot: N/A Price to Rent Ratio: 12 Traditional Cash on Cash Return: 2.9% #2. Levittown, PA Traditional Rental Income: $1,759 Median Property Price: $253,407 Price per Square Foot: $164 Price to Rent Ratio: 12 Traditional Cash on Cash Return: 2.5% #3. Apple Valley, MN Traditional Rental Income: $1,758 Median Property Price: $284,690 Price per Square Foot: $149 Price to Rent Ratio: 13 Traditional Cash on Cash Return: 2.0% #4. Miami Gardens, FL Traditional Rental Income: $1,742 Median Property Price: $267,652 Price per Square Foot: $183 Price to Rent Ratio: 13 Traditional Cash on Cash Return: 2.6% #5. Bartlett, TN Traditional Rental Income: $1,681 Median Property Price: $266,564 Price per Square Foot: $142 Price to Rent Ratio: 13 Traditional Cash on Cash Return: 2.9% Best Cities for Rental Income with Median Listing Price: $200,000- $100,000 #1. Mesquite, TX Traditional Rental Income: $1,416 Median Property Price: $193,556 Price per Square Foot: $124 Price to Rent Ratio: 11 Traditional Cash on Cash Return: 3.1% #2. Schenectady, NY Traditional Rental Income: $1,373 Median Property Price: $190,745 Price per Square Foot: $114 Price to Rent Ratio: 12 Traditional Cash on Cash Return: 1.6% #3. Manchester, NJ Traditional Rental Income: $1,354 Median Property Price: $190,685 Price per Square Foot: N/A Price to Rent Ratio: 12 Traditional Cash on Cash Return: 1.1% #4. Troy, NY Traditional Rental Income: $1,277 Median Property Price: $191,290 Price per Square Foot: $93 Price to Rent Ratio: 12 Traditional Cash on Cash Return: 1.6% #5. Waterbury, CT Traditional Rental Income: $1,250 Median Property Price: $144,695 Price per Square Foot: $100 Price to Rent Ratio: 10 Traditional Cash on Cash Return: 1.8% The Next Steps At this point, you should be armed with a list of 5 great cities for buying a rental property based on your budget for real estate investing. And if you’ve taken a look at the cash on cash return, you may be able to narrow down your list even further. That’s because you want to try to choose a city with higher cash on cash return. If you’re still not sure where to invest in real estate, we put together the ultimate guide for you. Check it out: How to Choose a Real Estate Market to Invest In. So, what comes next? After choosing a high rental income city, there are two more steps: Find a neighborhood within that city that promises high rental income. Find an investment property for sale that promises a high rental income along with a positive cash flow and a good cash on cash return. #1. Find a Neighborhood That Promises High Rental Income Let’s say you landed on the Miami Gardens real estate market. If you want to find a high rental income neighborhood, it’s best to use Mashvisor’s Real Estate Heatmap Analysis Tool. Our Heatmap has a filter for Traditional Rental Income and when selected, high rental income neighborhoods are highlighted in green. Take a look: Mashvisor’s Real Estate Heatmap – High Rental Income Neighborhoods in Miami Gardens, FL As mentioned, gross rental income should not be your only concern. That’s why Mashvisor allows you to conduct a neighborhood analysis based on other metrics like Listing Price, Traditional Cash on Cash Return, and even Airbnb Occupancy Rate if you’re looking to invest in a short-term rental property. Try it out now. Related: Real Estate Heatmap: A Revolutionary Tool for Neighborhood Analysis #2. Find a Good Investment Property for Sale Once you’ve selected a neighborhood, Mashvisor will show you all the rental income properties for sale in the area. It’s likely that you’re looking at well over a dozen. When buying houses for rental income, you want to move fast. So trying to estimate rental income and other property metrics for all listings would take way too long. You could set up investment analysis spreadsheets, but the better alternative is to use a rental income calculator. Mashvisor’s rental income calculator uses reliable rental comps in the location to provide not only rental income estimates for every listing but also: Rental Property Expenses Cash Flow Cash on Cash Return Cap Rate And More. Mashvisor’s Rental Income Calculator Find Cash Flow Properties Now Avoid manually researching and calculating rental income with this tool and ensure you side-step negative cash flow from the get-go. Start Your Investment Property Search Today With data on real estate rental income by city and the real estate investment tools that will help you find a profitable investment property, you’re ready to begin your property search. Start Your 7-Day Free Trial with Mashvisor Now. Start Your Investment Property Search! START FREE TRIAL Long Beach CALos Angeles CAMiami Gardens FLRental IncomeSan Francisco CAScottsdale AZ 0 FacebookTwitterGoogle +PinterestLinkedin Sylvia Shalhout Sylvia was the Content Marketing Manager at Mashvisor. As a real estate writer, she has been covering topics for the beginner and advanced real estate investor, helping them make smarter decisions as well as real estate agents looking to take their business to the next level. Previous Post How to Be a Good Property Manager During COVID-19 Next Post Traditional Rental Properties: The Best Monthly Cash Flow Investments Related Posts Is Investing in Airbnb San Antonio a Smart Move in 2019? Airbnb Hudson FL: Should You Invest in 2022? 10 Best Neighborhoods in the Nashville Real Estate Market 2019 The Most Affordable Neighborhoods to Buy Property in the Most Expensive Cities Scottsdale Real Estate Market in 2021: Should You Invest and Where? 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