Cash Flow Rental Markets, Ranked by Rent-to-Price
These are the ten cities we track every month. For each one we pull the median sale price and median rent from one established investor neighborhood (away from downtown and outside the metro average), then run both through the same assumptions the free calculator uses.
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| Market | Median price | Median rent | Rent / price | Est. cap rate |
|---|---|---|---|---|
| Detroit, MI | $99,999 | $1,250/mo | 1.25% | 10.9% |
| Memphis, TN | $89,900 | $1,095/mo | 1.22% | 10.5% |
| Birmingham, AL | $92,900 | $1,075/mo | 1.16% | 9.9% |
| Kansas City, MO | $115,000 | $1,279/mo | 1.11% | 9.5% |
| Cleveland, OH | $124,900 | $1,299/mo | 1.04% | 8.8% |
| Pittsburgh, PA | $139,900 | $1,285/mo | 0.92% | 7.6% |
| Indianapolis, IN | $135,000 | $1,125/mo | 0.83% | 6.8% |
| Columbus, OH | $150,000 | $1,200/mo | 0.80% | 6.4% |
| Cincinnati, OH | $169,900 | $1,150/mo | 0.68% | 5.2% |
| St. Louis, MO | $159,900 | $950/mo | 0.59% | 4.4% |
Estimated cap rate uses the calculator’s default costs, including a flat 1.1% property tax rate for every city. Local rates differ, so a high-tax city like Detroit has a lower real cap rate than shown, and a low-tax one like Birmingham has a higher one.
How to read this table
Rent / price is the monthly rent divided by the price. A market at 1.0% passes the 1% rule. The estimated cap rate takes the median rent, subtracts property tax, insurance, vacancy, maintenance and management at the calculator’s default rates, and divides what’s left by the median price. Use it to compare cities. Real property tax and insurance differ by address.
A high rent-to-price ratio usually comes with older housing, slower price growth or more management work. A cheap market that cash flows on paper can still be a bad buy. That’s why each city page lists population change and unemployment next to the price numbers.
More ways to browse
- Markets with a median price under $200,000
- The market picker, to rank these by your own priorities
- Best US states for Canadian investors
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