{"id":187677,"date":"2026-04-24T10:17:40","date_gmt":"2026-04-24T16:17:40","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=187677"},"modified":"2026-04-24T10:18:44","modified_gmt":"2026-04-24T16:18:44","slug":"top-10-markets-for-rookie-investors-to-invest-in","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/top-10-markets-for-rookie-investors-to-invest-in","title":{"rendered":"Top 10 Markets For Rookie Investors to Invest In This Year"},"content":{"rendered":"

First-time homebuyers and small investors look for many of the same attributes when considering where to buy real estate: affordability, safety, stability, employment, accessibility, limited competition, and prosperity. That\u2019s why Zillow\u2019s 2026<\/span> Best Markets for First-Time Homebuyers<\/span><\/a> also serves as a handy cheat sheet for investors.<\/span><\/p>\n

Kara Ng, a senior economist at Zillow, <\/span>told CNBC Make It<\/span><\/a> that one thing the top buyer markets have in common is that they are all <\/span>located<\/span> in the Midwest or the <\/span>Sunbelt<\/span>.<\/span> In other words, stay away from pricey coastal markets if you\u2019re looking for a good investment.<\/span><\/p>\n

Having a property that at least pays for itself\u2014given current interest rates\u2014and that increases in <\/span>equity<\/span><\/a> moderately, should be the goal of any investor who plans to buy using a loan.<\/span><\/p>\n

Avoiding a financial disaster should the property be vacant for a month or two also ties into the affordability aspect of Zillow\u2019s top picks, where all the selections fall below the<\/span> 30% of monthly housing costs<\/span><\/a> recommended for financial well-being.<\/span><\/p>\n

The Zillow Top 10<\/span><\/h2>\n

That said, Zillow\u2019s top 10 list does raise a few eyebrows. Here is the full list, along with the reasons investors should consider these metros.<\/span><\/p>\n

1. Jacksonville, Florida: Median home price: $282,895\u00a0<\/span><\/h3>\n

The Florida city was ranked No. 1 by Zillow, primarily <\/span>due to<\/span> affordability and, of course, the lure of the Florida lifestyle and bustling port.<\/span> Florida\u2019s most populous city is never short of potential renters, which is why <\/span>21% of single-family homes<\/span><\/a> in the city are owned by corporations<\/span>.<\/span><\/p>\n

2. Birmingham, Alabama: Median home price: $135,870<\/span><\/h3>\n

This<\/span> has been an <\/span>investor hot spot<\/span><\/a> for a while. A city where around 50% of the population are renters, affordability, and a younger, employed demographic make this a good place to invest.<\/span><\/p>\n

3. San Antonio, Texas: Median home price: $249,810<\/span><\/h3>\n

Affordability and the relative <\/span>financial health<\/span><\/a> of the renter population mean this is a place where you are more likely to receive your rent on time.\u00a0<\/span><\/p>\n

4. Atlanta, Georgia: Median home price: $385,599<\/span><\/h3>\n

\u201cHotlanta\u201d is rarely out of the news for sports, entertainment, and more. It has a generally financially well-to-do population, affordable housing, and many employment opportunities, which offer high gross yields for investors in the <\/span>right neighborhoods<\/span><\/a>.<\/span><\/p>\n

5. Houston, Texas: Median home price: $264,336<\/span><\/h3>\n

Although the population skews slightly older, it\u2019s generally affordable, with multiple employment opportunities and <\/span>booming suburbs<\/span><\/a>. The scale of the city and its economic diversity work in Houston\u2019s favor.<\/span><\/p>\n

6. St. Louis, Missouri: Median home price: $181,928<\/span><\/h3>\n

Over half the Zillow listings here are within reach for first-time homebuyers, which also means that rent is <\/span>affordable and cash-flowing opportunities<\/span><\/a> exist.<\/span><\/p>\n

7. Detroit, Michigan: Median home price: $75,358<\/span><\/h3>\n

Detroit<\/span><\/a> is very much a neighborhood-by-neighborhood, block-by-block city for investors, despite its well-documented demand. <\/span>Find the right property, though, and it will most likely be affordable<\/span>, <\/span>with<\/span> a large renter pool.<\/span> Meticulous <\/span>tenant screening<\/span><\/a> is essential.<\/span><\/p>\n

8. Raleigh, North Carolina: Median home price: $433,996<\/span><\/h3>\n

Breaking even is the goal in super-hot North Carolina, which is relatively affordable given its<\/span> high-paying tech and education-driven economy<\/span><\/a> and appreciating prices. It\u2019s a good long-term investment.<\/span><\/p>\n

9. Baltimore, Maryland: Median home price: $188,101<\/span><\/h3>\n

Baltimore might be a surprising inclusion for some, but don\u2019t let its gritty reputation fool you. Not all of Baltimore is like an episode of <\/span>The Wire<\/span><\/em>. The home of novelist Anne Tyler and filmmaker John Waters, among many others, Baltimore has an artistic and academic reputation, with<\/span> several neighborhoods worth investing in<\/span><\/a>, where affordability gives it a clear advantage over other East Coast cities.<\/span><\/p>\n

10. Louisville, Kentucky: Median home price: $261,482<\/span><\/h3>\n

Median-income renters have plenty of choice here, allowing small investors to cash flow a single-family home. For investors willing to put in some work, it\u2019s possible to unearth some real gems here, <\/span>such as this one<\/span><\/a>.<\/span><\/p>\n

What All The Cities Have in Common<\/span><\/h2>\n

Rents in these areas are unlikely to trouble tenants while allowing investors to break even<\/span>,<\/span><\/strong> if not <\/span>cash flow<\/span><\/a>, even with current interest rates.<\/span><\/p>\n

Employment and younger demographics all augur well for buy-and-hold investors looking to commit <\/span>long-term<\/span>, reaping benefits through <\/span>appreciation<\/span><\/a>, rent growth, and eventual mortgage paydown.<\/span><\/p>\n

The Contrast to Other Markets<\/span><\/h2>\n

While it is possible to find more affordable real estate markets, the combination of affordability, a large tenant pool, incomes, and employment makes these Zillow markets vibrant urban ecosystems that buck the trend of inaffordability and negative cash flow that has befallen many pricier markets, where sales are down, complicated by high rates and global geopolitical tensions.<\/span><\/p>\n

“There is little in the near-term backdrop to suggest a quick rebound in sales,” Daniel Vielhaber, an economist at Nationwide, told<\/span> Reuters<\/span><\/a> after March\u2019s national sales numbers showed a nine-month low. “We continue to look for sluggish sales this year, particularly in the first half, before a gradual pickup as mortgage rates decline in the second half and into 2027.\u201d\u00a0<\/span><\/p>\n

Consequently, the<\/span> National Association of Realtors<\/span><\/a> lowered its estimate of home sales growth to 4%. \u201cLower consumer confidence and softer job growth continue to hold back buyers,\u201d Lawrence Yun, NAR\u2019s chief economist, said. Plus, \u201cinventory remains a major constraint on the market. The inventory-to-sales ratio, or supply-to-demand ratio, is below historical norms.\u201d<\/span><\/p>\n

Final Thoughts<\/span><\/h2>\n

While the metros on Zillow\u2019s list aren\u2019t immune to economic and global headwinds, many of these cities have avoided the worst of the predictions <\/span>due<\/span> to their inventory, affordability, and <\/span>lack of<\/span> cost-burdened <\/span>tenants<\/span>.<\/span><\/p>\n

Recent surveys suggest that the focus will remain on affordable, somewhat insulated markets in which to live and invest. A recent<\/span> Retirement Confidence Survey<\/span><\/a> conducted by the Employee Benefit Research Institute (EBRI) and Greenwald Research found that Americans\u2014both working and retired\u2014were deeply concerned about their ability to sustain themselves, which plays into the affordability of Zillow\u2019s selections.<\/span><\/p>\n

\u201cRetirement confidence has clearly softened this year, and the data show why,\u201d said Craig Copeland, director of wealth benefits research at EBRI, in a <\/span>press release<\/span><\/a>, \u201cAmericans are contending with a mix of immediate financial pressures and long-term uncertainty. Many workers are struggling with debt, inflation, and rising housing and healthcare costs, while retirees are increasingly worried about the future of Social Security and Medicare. Together, those pressures are making it harder for people to feel secure about their retirement.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

First-time homebuyers and small investors look for many of the same attributes when considering where to buy real estate: affordability, safety, stability, employment, accessibility, limited competition, and prosperity. That\u2019s why […]<\/p>\n","protected":false},"author":613725,"featured_media":185437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7364],"tags":[],"class_list":["post-187677","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\/187677","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=187677"}],"version-history":[{"count":3,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/187677\/revisions"}],"predecessor-version":[{"id":187682,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/187677\/revisions\/187682"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/185437"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=187677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=187677"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=187677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}