{"id":186995,"date":"2026-02-27T08:34:58","date_gmt":"2026-02-27T15:34:58","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=186995"},"modified":"2026-03-02T10:22:04","modified_gmt":"2026-03-02T17:22:04","slug":"top-trending-rental-markets-to-start-2026","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/top-trending-rental-markets-to-start-2026","title":{"rendered":"The Top Trending Rental Markets to Start 2026 Are Not What You&#8217;d Expect"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Any guesses which cities are at the top of <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/market-snapshots\/cities-to-watch-this-year\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">RentCafe.com&#8217;s hottest rental markets<\/span><\/a><span data-preserver-spaces=\"true\"> at the start of 2026? Miami? Phoenix? Austin?<\/span><\/p>\n\n\n<p><iframe title=\"Top 10 cities to watch ahead of the 2026 rental season\" aria-label=\"Symbol map\" id=\"datawrapper-chart-O3PNk\" src=\"https:\/\/datawrapper.dwcdn.net\/O3PNk\/13\/\" scrolling=\"no\" frameborder=\"0\" style=\"width: 0; min-width: 100% !important; border: none;\" height=\"717\" data-external=\"1\"><\/iframe><script type=\"text\/javascript\">window.addEventListener(\"message\",function(a){if(void 0!==a.data[\"datawrapper-height\"]){var e=document.querySelectorAll(\"iframe\");for(var t in a.data[\"datawrapper-height\"])for(var r,i=0;r=e[i];i++)if(r.contentWindow===a.source){var d=a.data[\"datawrapper-height\"][t]+\"px\";r.style.height=d}}});<\/script><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Try Cincinnati, Atlanta, and Minneapolis. They indicate a quiet shift toward affordable, job-rich metros that small investors can also buy into and possibly<\/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\">from. While the coasts boast luxury living and high-end jobs, early data indicate that the best opportunities for workers and investors over the next few years could lie in the Midwest and interior South.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What RentCaf\u00e9\u2019s New Rankings Really Show\u2014and What They Don\u2019t<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">RentCaf\u00e9 based its ranking system on renter behavior on its platform. To collate the list that gauges renter demand, the site examined four specific areas and ranked markets accordingly:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Apartment availability<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Favorited listings<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Saved searches<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Page views<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cincinnati rose to the top spot on the back of some impressive stats. The number of apartments favored by prospective renters jumped 81% year over year, while saved searches climbed 14% by late 2025, and page views climbed 3%. Atlanta\u2019s second-place spot was driven mostly by prospective renters from New York and across Georgia, suggesting ongoing in-migration from pricier markets.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Minneapolis had been a previous RentCaf\u00e9 top spot holder, and at the time the data was collected, favorited listings were up 29% year over year, fifth for total saved searches and ninth for page views. However, this was collected before the ICE immigration crackdown in the city, which caused unrest and affected rental real estate occupancy and the pace of new builds, according to reports in the<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.startribune.com\/ic%E2%80%A6uilders-real-estate\/601575566\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Star Tribune<\/span><\/a><\/em><span data-preserver-spaces=\"true\"> and<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.multifamilydive.com\/news\/immigration-raid-ICE-apartment-occupancy\/812992\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Multifamily Dive<\/span><\/a><\/em><a class=\"editor-rtfLink\" href=\"https:\/\/www.multifamilydive.com\/news\/immigration-raid-ICE-apartment-occupancy\/812992\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">.<\/span><\/a><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Overall, RentCaf\u00e9\u2019s report showed that the Midwest accounted for 11 spots and the South accounted for 10 spots on its annual list, reflecting primarily affordability, livability, and the amenities available in rentals and surrounding areas in traditional blue-collar cities like Minneapolis, Cleveland, and Detroit, as well as in Western markets like Santa Ana, California.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That\u2019s not to say that high-demand big metros like Dallas, New York, Chicago, and Miami are flagging. In fact, even with <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.rentcafe.com\/blog\/rental-market\/market-snapshots\/new-apartment-construction\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">500,000 new apartments<\/span><\/a><span data-preserver-spaces=\"true\"> coming to those areas, data shows that finding a vacancy there remains a challenge.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Middle America Is Surging<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The affordability crisis is at the crux of Americans&#8217; need to move to cheaper markets. According to <\/span><em><a class=\"editor-rtfLink\" href=\"https:\/\/www.wsj.com\/economy\/housing\/midwest-affordable-cb362b7c\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">The Wall Street Journal<\/span><\/a><\/em><span data-preserver-spaces=\"true\">, overall living expenses in several Midwest metros are about 8.5% under the U.S. average.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/january-2026-wsj-rdc-housing-market-ranking\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">WSJ<\/span><\/a><\/em><a class=\"editor-rtfLink\" href=\"https:\/\/www.realtor.com\/research\/january-2026-wsj-rdc-housing-market-ranking\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\/Realtor.com Emerging Housing Markets Index for winter 2026<\/span><\/a><span data-preserver-spaces=\"true\"> found that Midwest markets with reputable universities, strong medical infrastructure, and manufacturing hubs were particularly resilient. Matching those attributes with affordability, median home prices were largely between $240,000 and $400,000, and the cost of living was below national norms.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to a recent <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.lendingtree.com\/home\/mortgage\/fair-market-rents-study\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">LendingTree study,<\/span><\/a><span data-preserver-spaces=\"true\"> Americans are paying \u201chundreds of extra dollars in rent\u201d\u2014about 40% more for one- and two-bedroom apartments\u2014than even five years ago, while wages have not kept pace, putting a tremendous squeeze on renters and ushering a migration to more affordable cities.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The housing industry has responded by bringing thousands of new apartments to the rental market, increasing residential construction starts 5.2% month over month to 1.428 million units as of July 2025, with new apartment construction up by more than 50% across two months in mid-2025, according to the Commerce Department&#8217;s Census Bureau data, as quoted by <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.reuters.com\/world\/us\/us-housing-starts-tick-higher-july-led-by-apartment-construction-2025-08-19\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Reuters<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Still a Chronic Shortage of Housing<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The National Apartment Association and the National Multi-Family Housing Council released a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.nmhc.org\/news\/one-nation-underhoused\/2026\/the-state-of-our-union\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">joint statement<\/span><\/a><span data-preserver-spaces=\"true\"> on the eve of President Trump\u2019s State of the Union address, citing the need for more housing to ease the affordability crisis, saying:<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">\u201cNeither one speech nor one single federal policy is going to solve the housing affordability challenges we face. Instead, alleviating the housing shortage requires a sustained commitment to building housing of all types, backed by public and private investment, through public-private partnerships and freed from outdated rules that slow construction and drive up costs. It also requires the administration to lean into what we know works\u2014building more housing\u2014and resist repeating mistakes of the past.\u201d<\/span><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Reading the Data for Smaller Investors<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Clearly, cheaper, more affordable markets around employment hubs are an essential play for smaller investors seeking stable rental income. A <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/institute.bankofamerica.com\/content\/dam\/economic-insights\/on-the-move-migration-patterns.pdf\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">recent report<\/span><\/a><span data-preserver-spaces=\"true\"> from Bank of America showed that the exodus of residents from high-cost areas such as Los Angeles and New York to smaller Southern cities is fueling out-of-state migration, concluding that \u201caffordability and climate remain the two biggest magnets\u2014and the two biggest push factors.\u201d<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">\u2018The Straw That Breaks the Camel\u2019s Back\u2019<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Minneapolis presents a cautionary tale for investors. In the turbulent political climate, cities with high immigrant populations that face deportation drives by ICE could have severe repercussions for landlords.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Chris Nebenzahl, vice president of rental research at John Burns Research and Consulting, told<\/span> <em><a class=\"editor-rtfLink\" href=\"https:\/\/www.multifamilydive.com\/news\/immigration-raid-ICE-apartment-occupancy\/812992\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Multifamily Dive<\/span><\/a><\/em><span data-preserver-spaces=\"true\"> that in some buildings, immigration enforcement \u201ccould be the straw that breaks the camel\u2019s back,\u201d particularly for owners facing loans originated in 2021 that are coming due amid higher vacancies and lower rent rolls.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Nebenzahl added that the combination of past supply issues and now a demand shock from immigration policy \u201cis really putting some folks in a bit of a lurch from an occupancy perspective.\u201d Other landlords in Florida and Texas told the outlet that they have also seen detrimental effects on leasing and occupancy when ICE enforcement intensity is particularly high.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It is still too early, amid continuing ICE raids, to see how long it takes for leasing activity to return to previous levels after enforcement activity in an area rescinds.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">The rental market remains highly fluid in the U.S., with the shifting economic climate having a pronounced effect on rental activity, particularly with the advent of remote work, which means many people are less likely to stay in an expensive city for a job. There has been a shift toward more affordable, climate-friendly areas.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">RentCaf\u00e9\u2019s list is interesting because it\u2019s not one documented after the fact but one based largely on online activity, which is an indicator of future movement. That\u2019s why it\u2019s good to combine RentCaf\u00e9 data with rent growth data to see how interest translates into action.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">According to research firm <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/arbor.com\/blog\/top-u-s-multifamily-rent-growth-markets-february-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Arbor Realty Trust<\/span><\/a><span data-preserver-spaces=\"true\">, Minneapolis finished 2025 as the second-strongest <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/buying-multifamily\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\"> rent growth market in the country, with 2% growth and an average rent of about $1,497 per unit.\u00a0<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For small landlords, the play is simple: Follow the money. Larger apartment buildings are <\/span><span data-preserver-spaces=\"true\">being built<\/span><span data-preserver-spaces=\"true\"> at a clip, but not everyone wants to live in a building with hundreds of other people.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Consequently, single-family rental houses in these markets are coveted, according to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/nationalmortgageprofessional.com\/news\/multifamily-rentals-overtake-single-family-homes-us-rental-stock\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">National Mortgage Professional<\/span><\/a><span data-preserver-spaces=\"true\">, which reports that just 13.7% of single-family rentals are occupied by renters\u2014a decade low. Finding pockets of available single-family and small multifamily properties in these markets should ensure strong demand.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Any guesses which cities are at the top of RentCafe.com&#8217;s hottest rental markets at the start of 2026? Miami? Phoenix? Austin? Try Cincinnati, Atlanta, and Minneapolis. They indicate a quiet [&hellip;]<\/p>\n","protected":false},"author":613725,"featured_media":172377,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364],"tags":[],"class_list":["post-186995","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\/186995","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\/613725"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=186995"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186995\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/172377"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=186995"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=186995"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=186995"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}