{"id":187466,"date":"2026-04-09T05:39:10","date_gmt":"2026-04-09T11:39:10","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187466"},"modified":"2026-04-09T05:39:13","modified_gmt":"2026-04-09T11:39:13","slug":"best-college-markets-2026","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/best-college-markets-2026","title":{"rendered":"Want Guaranteed Rents? These Are the Best College Towns to Invest In Right Now"},"content":{"rendered":"

Many<\/span> seasoned investors<\/span><\/a> consider college rentals a real estate gold mine for both long- and short-term leases. Secure a rental apartment near a coveted institute of higher learning, and you can almost guarantee your income each year. With parents willing to safeguard the leases, even when other markets cool, the demand for student housing is such that landlords can anticipate uninterrupted revenue.<\/span><\/p>\n

If you\u2019re wondering which college towns to invest in, don\u2019t think purely about the housing cost and <\/span>cash flow<\/span><\/a>. There are numerous other factors to consider.<\/span><\/p>\n

Location is one. Often, college campuses <\/span>are surrounded<\/span> by sketchy neighborhoods, which can make for a bad rental experience.<\/span><\/p>\n

Taking into account the overall character of the surrounding area is paramount. Is the local economy strong? What are the enrollment stats? Are college rental properties reasonably priced?\u00a0<\/span><\/p>\n

If the deduction process seems daunting, <\/span>RentCafe.com has analyzed 244 college towns<\/span><\/a> and compiled a best-of list for small landlords to take note.<\/span><\/p>\n

Why College Towns Are Still Resilient in 2026<\/span><\/h2>\n

Before diving into the rankings, let\u2019s widen the lens and examine why college markets are a<\/span> good place to invest in 2026. As with many rental communities, a shortage of housing is driving up occupancy, enrollment remains high, and federal funding is driving on-campus projects, according to a recent report by<\/span> Berkadia<\/span><\/a>, with Texas and the Midwest enjoying the greatest rental gains.<\/span><\/p>\n

This<\/span> contrasts with the rest of the U.S. housing market, where the balance of power has started to<\/span> shift back to buyers<\/span><\/a> amid softening rents. Investors, meanwhile, have identified<\/span> affordability and quality of life<\/span><\/a> as primary drivers of investment.<\/span><\/p>\n

College towns fit the narrative. According to RentCafe.com’s ranking of the best college towns in the U.S. for 2026, Bozeman, Montana, leads the list for the third consecutive year, followed by a mix of Western and Midwestern communities anchored by their local universities.\u00a0<\/span><\/p>\n

Bozeman, Montana, Is Raising the Bar for College Towns<\/span><\/h2>\n

Bozeman is on a tear in the RentCafe rankings. A persistently high performer and home of Montana State University, Bozeman\u2019s rise has made national headlines, with the FOX-owned<\/span> LiveNow<\/span><\/a> reporting that the city\u2019s access to nature, low crime, and a student-friendly cost of living make it an ideal college town. However, it\u2019s not a place for rookie investors, as the average home value, according to Zillow, is over <\/span>$715,000<\/span><\/a>.<\/span><\/p>\n

For small investors, those factors, helped by national headlines, boost the occupancy rate, as RentCafe points out, which, coupled with the university\u2019s growth, has propelled Bozeman up the rankings and made local landlords who have owned in the city for a while flush with cash.<\/span><\/p>\n

The Midwest and the South Generate the Most Profit\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/h2>\n

However, larger investors usually choose vast apartment complexes to park their cash, leaving a gap in the market for astute mom-and-pop investors to buy smaller single-family and <\/span>multifamily<\/span><\/a> homes off-campus in nearby neighborhoods, where purchase prices are more affordable.\u00a0<\/span><\/p>\n

According to RentCafe\u2019s list, more affordable housing is likely to be found around several colleges in the Midwest and South, such as:<\/span><\/p>\n