Top Locations15 Cities with the Highest Rents in the US in 2021 by Alex Karani January 14, 2021January 14, 2021 by Alex Karani January 14, 2021January 14, 2021When it comes to buying a rental property, the most important thing you need to focus on is location. One of the factors to consider when looking for the best places to invest in real estate is the potential rental income. High and growing rental prices could be an indication that the market has a high renter population and, consequently, a strong demand for rental properties. Investing in cities with the highest rents means that you’ll be able to earn high rental income. This increases your chances of finding a rental property that produces rental income that is high enough to cover rental expenses and bring positive cash flow. Therefore, if you are interested in buying rental property for cash flow, one strategy to adopt is to search for investment opportunities in cities with the most expensive rentals.Related: How to Choose a Real Estate Market to Invest InIn this article, we review 15 cities with the highest rents in the US in 2021 to help make your property search even easier. We shall focus on traditional rental income but will also include a few other key metrics such as median property price, price to rent ratio, and cash on cash return as you shouldn’t select a location based on one number. The rental data is derived from reliable sources such as Zillow and the MLS and the projections are done using Mashvisor’s sophisticated algorithms.With that in mind, here are 15 cities with the highest rents in the US in 2021:15 Best Cities for Rental Income in 20211. San Francisco, CAMedian Property Price: $1,484,192Price per Square Foot: $1,041Price to Rent Ratio: 29Monthly Traditional Rental Income: $4,262Traditional Cash on Cash Return: 1.2%2. Santa Barbara, CAMedian Property Price: $1,818,142Price per Square Foot: $899Price to Rent Ratio: 38Monthly Traditional Rental Income: $3,987Traditional Cash on Cash Return: 1.2%3. Pasadena, CAMedian Property Price: $1,181,791Price per Square Foot: $641Price to Rent Ratio: 25Monthly Traditional Rental Income: $3,890Traditional Cash on Cash Return: 1.8%4. Long Beach, CAMedian Property Price: $946,010Price per Square Foot: $529Price to Rent Ratio: 21Monthly Traditional Rental Income: $3,816Traditional Cash on Cash Return: 2.2%5. Key West, FLPictured above are homes for sale in the Key West real estate market – one of the markets with the highest rents in 2021.Median Property Price: $1,103,559Price per Square Foot: $750Price to Rent Ratio: 25Monthly Traditional Rental Income: $3,745Traditional Cash on Cash Return: 2.9%6. Los Angeles, CAMedian Property Price: $1,209,782Price per Square Foot: $655Price to Rent Ratio: 27.15Monthly Traditional Rental Income: $3713Traditional Cash on Cash Return: 1.83Related: Los Angeles Housing Market: Where to Invest7. Glendale, CAMedian Property Price: $1,077,681Price per Square Foot: $585Price to Rent Ratio: 25Monthly Traditional Rental Income: $3,601Traditional Cash on Cash Return: 2.0%8. Great Neck, NYMedian Property Price: $1,237,292Price per Square Foot: $554Price to Rent Ratio: 29Monthly Traditional Rental Income: $3,535Traditional Cash on Cash Return: 0.6%9. Anaheim, CAMedian Property Price: $778,374Price per Square Foot: $426Price to Rent Ratio: 19Monthly Traditional Rental Income: $3,504Traditional Cash on Cash Return: 2.7%10. Irvine, CAMedian Property Price: $1,024,747Price per Square Foot: $516Price to Rent Ratio: 25Monthly Traditional Rental Income: $3,437Traditional Cash on Cash Return: 1.6%11. Jupiter, FLMedian Property Price: $820,119Price per Square Foot: $357Price to Rent Ratio: 20Monthly Traditional Rental Income: $3,386Traditional Cash on Cash Return: 3.4%12. Huntington, NYMedian Property Price: $878,967Price per Square Foot: $413Price to Rent Ratio: 22Monthly Traditional Rental Income: $3,382Traditional Cash on Cash Return: 2.1%13. Torrance, CAMedian Property Price: $913,702Price per Square Foot: $551Price to Rent Ratio: 23Monthly Traditional Rental Income: $3,378Traditional Cash on Cash Return: 2.1%14. Scottsdale, AZMedian Property Price: $994,334Price per Square Foot: $354Price to Rent Ratio: 25Monthly Traditional Rental Income: $3,339Traditional Cash on Cash Return: 3.2%15. Middletown, NJMedian Property Price: $558,245Price per Square Foot: $266Price to Rent Ratio: 15Monthly Traditional Rental Income: $3,045Traditional Cash on Cash Return: 3.6%Related: 50 Best Cities for Rental IncomeHow to Find the Best Rental Properties with the Highest RentsNow you know the 15 most expensive cities in the US to rent that you can invest in in 2021. However, knowing cities with the highest rents in the US is not enough to find a profitable investment property. You need to do your due diligence to find rental properties for sale with the highest rents that provide good returns. Here are the steps:#1. Select the Best CityFirst, you’ll need to narrow down this list by identifying cities with the most expensive rent that fit your budget. Check the median property price to ensure that it’s within your budget. From the remaining list, identify cities with the highest rents. Also, consider the traditional cash on cash return data as this shows the potential return on investment.For example, the Great Neck real estate market may provide a high rental income. But the average cash on cash return for the city is a mere 0.6%. So you may want to eliminate such a city at this stage.#2. Find a Profitable NeighborhoodAfter you have identified the best city according to your budget and investment goals, the next step is to research the market to determine the best-performing neighborhood in the city. You can use Mashvisor’s Real Estate Heatmap to conduct a neighborhood analysis based on key real estate metrics such as rental income, listing price, and cash on cash return. The “rental income” filter should be your focus if you want to find neighborhoods with the highest rents. This will help you narrow down your target investment location even further.#3. Narrow Down Your Options With a profitable neighborhood in mind, you can begin your investment property search. Mashvisor’s Property Finder can help you to quickly find rental properties for sale that match your investment criteria and preferences. This search tool offers several interactive filters such as location, budget, property type, rental strategy, and the number of bedrooms/bathrooms.#4. Conduct Rental Property AnalysisThe final step to finding investment properties with the highest rents is to use Mashvisor’s Rental Property Calculator to calculate the potential rental income of investment properties for sale you’ve selected. This tool provides a full rental property analysis based on reliable rental comps. Apart from rental income, you will get accurate estimates of rental expenses, cash flow, cap rate, cash on cash return, and more. When buying luxury real estate, it’s also important that you ensure it generates good cash flow and a good return on investment. The highest rents won’t always guarantee a positive cash flow and a good ROI. It’s recommended that you only invest in cash flow properties, especially if you are still a beginner real estate investor. Using Mashvisor’s Rental Property Calculator is the best way to ensure this. Find a Profitable Traditional Rental PropertyThe Bottom LineIf you want to invest in real estate for cash flow in 2021, finding an investment property with a high monthly rental income is crucial. To increase the odds of finding such a property, you should consider investing in real estate markets with the highest rents. To make your property search easier, we have done all the leg work and provided you with a list of the most expensive cities to rent in the US in 2021. However, you should keep in mind that the most expensive cities to rent don’t always guarantee a positive cash flow. You need to perform a thorough investment property analysis to ensure that the specific property you invest in has good cash flow and ROI. There’s no easier and more accurate way to do so than to use Mashvisor’s real estate investment property tools for your property search and analysis. Start Your Investment Property Search! START FREE TRIAL Key West FLLong Beach CALos Angeles CARental IncomeSan Francisco CAScottsdale AZ 0FacebookTwitterGoogle +PinterestLinkedin Alex KaraniAlex is an entrepreneur and an experienced content writer focused on personal finance, business, and investing. For over six years, he has contributed to a number of publications, both online and print. When he's not writing or working, Alex enjoys reading, traveling, and the outdoors. Previous Post How Guests Paid for My $275k Dream Vacation Home Next Post Can Landlords Try Cash for Keys During COVID-19? Related Posts What’s the Deal with the Detroit Housing Market in 2020? 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