{"id":162670,"date":"2023-11-22T14:09:08","date_gmt":"2023-11-22T21:09:08","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=162670"},"modified":"2024-02-29T17:06:29","modified_gmt":"2024-03-01T00:06:29","slug":"best-unsexy-housing-markets","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/best-unsexy-housing-markets","title":{"rendered":"8 &#8220;Under the Radar&#8221; Housing Markets With Low Prices and High Cash Flow"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Markets like Denver, Washington, D.C., and Miami, where cultural attractions and scenic beauty abound, are appealing places to live. These sexy markets flourished during the pandemic, but they may be losing steam, according to some accounts. For example, as high earners from the East and West coasts move to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/moving-to-miami-could-save-thousands-but-what-is-that-doing-to-prices\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Miami<\/span><\/a><span data-preserver-spaces=\"true\">, longtime residents are being&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/fortune.com\/2023\/08\/02\/how-rich-wealthy-miami-wall-street-south-middle-class-population\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">priced out<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While there are opportunities in sexy markets for investors with plenty of capital to earn profit, high home prices present a significant challenge. What\u2019s more, cash flow may be stronger in smaller, lesser-known markets with affordable real estate, which could draw transplants in droves, according to our research.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Our analysts pulled data on median home price, rent-to-price ratio, population growth, and unemployment rate so we could identify the best opportunities in markets you may have never heard of. These eight markets have strong metrics, with the potential to be the next haven cities for people looking to leave sexy locales behind.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Myrtle Beach, South Carolina<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $336,858<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.67%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 3.9%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 3%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Myrtle Beach ranks 18th in the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/realestate.usnews.com\/places\/south-carolina\/myrtle-beach\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">U.S. News&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">Best Places to Live<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;due to the vacation town\u2019s low cost of living and year-round mild weather. Because it\u2019s a tourist destination, it\u2019s also thriving with cultural events and restaurants. For these reasons, it holds appeal for people in a variety of life stages, and the population growth rate is almost four times the national average.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Rents are now cooling, as they are in many areas of the country, but the town was on the top locations for rent gains over the last three years, with a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.postandcourier.com\/priced-out\/south-carolina-has-seen-some-of-nations-largest-rent-increases-and-theyre-still-rising\/article_b3df3d46-3569-11ee-883d-33aebd75757f.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">36% increase<\/span><\/a><span data-preserver-spaces=\"true\">, according to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.apartmentlist.com\/rent-report\/sc\/myrtle-beach\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Apartment List<\/span><\/a><span data-preserver-spaces=\"true\">. And with an average rent-to-price ratio of over 0.6%, you may find deals in the area that reach 0.9% or 1%.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/beach-houses-vs-lake-houses-short-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Beach houses<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;tend to get more short-term rental revenue than the average property as well.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Tallahassee, Florida<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $272,204<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.54%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 0.7%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 3.3%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Florida\u2019s home price hikes over the last few years have meant fewer&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/rental-property-cash-flow-analysis\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash flow<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;markets to choose from, but Tallahassee is one with great potential. The city is home to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/realestate.usnews.com\/places\/florida\/tallahassee\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">three colleges<\/span><\/a><span data-preserver-spaces=\"true\">, including Florida State University and Florida A&amp;M University, which means a slew of potential&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/investing-student-housing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">student housing<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;renters for low-priced properties.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While the rent-to-price ratio isn\u2019t as high as some markets on our list, there\u2019s great potential for appreciation in Florida\u2014Tallahassee is likely to catch some overflow from overheated markets as residents seek cheaper housing. Additionally, a short-term or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-invest-in-medium-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">midterm rental<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;strategy could work well in the city for both visiting parents of college students and tourists seeking warm winter weather and sandy beaches at an affordable price.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Jonesboro, Arkansas<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $188,405<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.74%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 1.3%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 2.9%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Jonesboro has a healthy economy and a low unemployment rate. Manufacturing and healthcare jobs employ many residents \u2014the town is home to big hospitals and companies like Nestle and Frito-Lay. Jonesboro is also close to Memphis, Tennessee.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The average rent-to-price ratio is one of the highest on our list, and there\u2019s potential to find deals at a 1% ratio. A median home price under $200,000 also means a low barrier to entry. And the population is growing at a faster clip than average.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Joplin, Missouri<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $205,882<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.65%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 1.1%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 3.2%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">For a small market, Joplin has relatively strong population growth, in part due to growth in nearby Northwest Arkansas. Like Jonesboro, Joplin offers a lot of job opportunities in manufacturing and healthcare. The many hospitals may be a draw for travel nurses, which could present an opportunity for midterm rentals. Rents for studio and one-bedroom apartments are actually rising in Joplin, according to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zumper.com\/rent-research\/joplin-mo\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zumper<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.rent.com\/missouri\/joplin-apartments\/rent-trends\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Rent.com<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With a low median home price and a strong rent-to-price ratio, Joplin is a good place to find deals. Local investor Henry Washington says he\u2019s finding cash flow properties left and right\u2014hear more about it on the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/on-the-market-155\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">On the Market podcast<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">5. Tuscaloosa, Alabama<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $211,379<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.80%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 1.4%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 2.4%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tuscaloosa is a small town with mild temperatures that is home to three colleges, including the University of Alabama, which contribute about $3 billion to the local economy. The unemployment rate is the lowest on our list; residents are mostly employed in healthcare, education, government, and manufacturing, and the town is home to one of the largest Mercedes-Benz assembly plants in the world. The Tuscaloosa\/Birmingham region has also been called one of the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/westalabamachamber.com\/area-economy\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">best areas to start a business<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;by&nbsp;<\/span><em><span data-preserver-spaces=\"true\">Forbes&nbsp;<\/span><\/em><span data-preserver-spaces=\"true\">and Kiplinger.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">College students need apartments in the area, and there\u2019s demand for&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/the-ultimate-guide-to-short-term-rental-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term rentals<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;during football season. Tuscaloosa has the highest rent-to-price ratio on our list, so investors can easily find deals, and the median home price is well below the national median of $431,000 as of the third quarter.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">6. Oshkosh, Wisconsin<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $265,468<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.60%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 0.9%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 3.5%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Situated on Lake Winnebago, Oshkosh is home to the University of Wisconsin-Oshkosh. While the metrics aren\u2019t as strong as some other cities on our list, our experts think the small city is poised for growth. That\u2019s because it\u2019s located relatively close to cities like Madison and Milwaukee.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Madison ranked 11th in the<\/span><em><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/em><a class=\"editor-rtfLink\" href=\"https:\/\/realestate.usnews.com\/places\/wisconsin\/madison\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">U.S. News<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;Best Places to Live<\/span><\/a><span data-preserver-spaces=\"true\">, thanks to a strong economy, growing population, and a great restaurant scene. However, Oshkosh has a lower cost of living when compared to Madison.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">7. Odessa, Texas<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $212,940<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.69%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 0.6%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 3.8%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Odessa is less appealing as an investment opportunity than other options on this list, due to a lower population growth rate. It\u2019s a small city with an economy that\u2019s dependent on oil, and it\u2019s relatively far from major hubs like Austin and San Antonio. Still, it offers a low barrier to entry, a low cost of living, and a relatively high rent-to-price ratio. It\u2019s worth considering, especially if you live nearby.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">8.Oklahoma City, Oklahoma<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Median Home Price: $228,620<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Rent-to-Price Ratio: 0.66%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Population Growth: 0.9%<\/span><\/strong><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Unemployment Rate: 3.2%<\/span><\/strong><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you\u2019re looking to provide affordable housing, Oklahoma City has a long waiting list for housing choice vouchers. The city has a strong rental market beyond that as well and is ranked as one of the best large cities for rent growth in October, according to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.apartmentlist.com\/rent-report\/ok\/oklahoma-city\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Apartment List<\/span><\/a><span data-preserver-spaces=\"true\">, though some other sources show flat or declining rents.&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/realestate.usnews.com\/places\/oklahoma\/oklahoma-city\" target=\"_blank\" rel=\"noopener\"><em><span data-preserver-spaces=\"true\">U.S. News<\/span><\/em><\/a><span data-preserver-spaces=\"true\">&nbsp;notes that young transplants have made Oklahoma City more lively in recent years while it still maintains a friendly, small-town feel.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Though population growth is about average, the city has strong cash flow potential. And with tech companies opening up local offices, economic growth is likely. You may not see a rental boom in Oklahoma City, but it\u2019s a stable market with low home prices where it\u2019s relatively easy to find good deals.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Bottom Line<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whether you\u2019re looking to grow your portfolio in long-distance markets or buy a&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/are-rental-properties-a-good-investment\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">rental property<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;for the first time, evaluating deals in unsexy markets is a smart strategy. It offers beginners a chance to break into real estate investing with less cash, and seasoned investors can diversify their portfolios. You may find better cash flow in these unsexy markets than in higher-priced hubs, and there\u2019s growth potential as&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/25-percent-of-earners-can-afford-housing\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">affordability problems<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;push residents out of bigger cities.&nbsp;<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>These eight high-upside housing markets are true diamonds in the rough. Check out the full list here.<\/p>\n","protected":false},"author":613615,"featured_media":162674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364],"tags":[],"class_list":["post-162670","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-housing-markets"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/162670","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613615"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=162670"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/162670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/162674"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=162670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=162670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=162670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}