50 Best Cities for Rental Income in 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

#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%

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:

1. Find a neighborhood within that city that promises high rental income.
2. 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:

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.

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.