Investing in different cities.
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Melissa JusticeBusiness Member
Rental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votesSince you’re in Philly, I completely get the desire to explore other markets where price-to-rent ratios are stronger and properties can cash flow from day one. A few markets that consistently stand out for rental properties are:
Midwest – Cities like Akron & Canton, OH and Memphis, TN are known for affordable single-family rentals in the $140k–$200k range with solid rent-to-price ratios. They also benefit from steady demand, blue-collar job bases, and landlord-friendly laws.
Southeast – Birmingham, AL and Columbus, GA are investor favorites because of population growth, affordability, and strong rental demand. Plus, you’ll often find new construction rentals with builder incentives that help cash flow better.
Secondary/Suburban markets – Instead of competing in major metros, looking at surrounding areas (outside Atlanta, Dallas) can mean lower entry costs with solid appreciation potential.
What makes these markets attractive for investors is the combination of affordability, stable job growth, and landlord-friendly regulations. They allow you to scale more easily compared to high-cost, low-yield markets.
If you’re newer to out-of-state investing, I’d recommend starting with turnkey single-family rentals where the property is already rehabbed or it's a new build (often times even leased) and management is in place. It removes a lot of the operational headaches while you’re learning the ropes.
Happy to share more detail on specific neighborhoods and what's worked for other investors. Best of luck!
41 Replies
- Member since 2025 · 2 posts · 0 votes1y
Hello Kyle Keith here add to share your idea of investing in different places. I live here in the Atlanta area and I heard that Augusta Georgia is a great place to invest. If you won’t I can share some of my contacts in Augusta.
- Real Estate Consultant · Indianapolis IN · Member since 2022 · 22 posts · 20 votes1y
Hi Kyle,
I’m based in Indianapolis, Indiana, and the state as a whole has some solid rental markets depending on your goals. Indy and the surrounding suburbs like Fishers or Noblesville are steady for long-term holds with strong tenant demand. Cities like Fort Wayne and Evansville offer good balance between affordability and stable rental income. If you’re looking for higher cash flow, smaller cities like Anderson, Marion, or Muncie can provide lower entry costs, though they do require tighter management and more attention to CapEx.
Indiana overall is landlord-friendly, affordable compared to coastal markets, and has a mix of both stable and high-yield options. If you’d like to connect and talk more about how these markets might fit your strategy, feel free to reach out.
- 1yArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 917 votes
Hey Kyle, for rental investing I’ve found the key is looking at cities with strong rent-to-price ratios, consistent tenant demand, and reliable local property management. I focus on Midwest markets where there’s solid cash flow, predictable appreciation, and a lot of value-add opportunities. Always helps to run the numbers and connect with local experts before jumping in.
- Property Manager · Erie & Millscreek PA | Maggie Valley & Haywood County NC · Member since 2024 · 264 posts · 118 votes1y
Hey! Love this question, I’ve been thinking about the same thing lately. I’m also based near Philly, and while there are definitely some solid rental spots here, I’ve been curious about what other cities people are having success in, too.
A few places that keep popping up in convos are:
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Cleveland, OH – Super affordable and great cash flow. Not the most glamorous, but numbers-wise, it works for a lot of people.
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Indy (Indianapolis) – Another solid Midwest market. Steady economy, low entry prices, and rents hold up well.
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Tampa or Jacksonville, FL – Florida’s hot right now (literally and figuratively 😅). Lots of people moving there, and no state income tax doesn’t hurt!
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Huntsville, AL – Kind of a sleeper pick. Growing tech scene, low vacancies, and prices haven’t gone totally nuts yet.
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Charlotte, NC – A nice mix of appreciation and rental demand. Bit more competitive, but still some good opportunities.
What makes these places appealing usually comes down to things like job growth, affordable prices, and decent rent-to-price ratios. Also helps if the area’s landlord-friendly
- 1yAja SellersPro MemberInvestor · Member since 2024 · 16 posts · 6 votes
Quote from @Benjamin Louie:
Hey! Love this question, I’ve been thinking about the same thing lately. I’m also based near Philly, and while there are definitely some solid rental spots here, I’ve been curious about what other cities people are having success in, too.
A few places that keep popping up in convos are:
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Cleveland, OH – Super affordable and great cash flow. Not the most glamorous, but numbers-wise, it works for a lot of people.
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Indy (Indianapolis) – Another solid Midwest market. Steady economy, low entry prices, and rents hold up well.
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Tampa or Jacksonville, FL – Florida’s hot right now (literally and figuratively 😅). Lots of people moving there, and no state income tax doesn’t hurt!
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Huntsville, AL – Kind of a sleeper pick. Growing tech scene, low vacancies, and prices haven’t gone totally nuts yet.
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Charlotte, NC – A nice mix of appreciation and rental demand. Bit more competitive, but still some good opportunities.
What makes these places appealing usually comes down to things like job growth, affordable prices, and decent rent-to-price ratios. Also helps if the area’s landlord-friendly
Huntsville, AL is definitely a sleeper market and the floodgates are about to open with President Trump announcing the relocation of the Space Command to Huntsville!
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- Property Manager · Orlando, FL · Member since 2016 · 479 posts · 277 votes1y
Quote from @Benjamin Louie:
Hey! Love this question, I’ve been thinking about the same thing lately. I’m also based near Philly, and while there are definitely some solid rental spots here, I’ve been curious about what other cities people are having success in, too.
A few places that keep popping up in convos are:
-
Cleveland, OH – Super affordable and great cash flow. Not the most glamorous, but numbers-wise, it works for a lot of people.
-
Indy (Indianapolis) – Another solid Midwest market. Steady economy, low entry prices, and rents hold up well.
-
Tampa or Jacksonville, FL – Florida’s hot right now (literally and figuratively 😅). Lots of people moving there, and no state income tax doesn’t hurt!
-
Huntsville, AL – Kind of a sleeper pick. Growing tech scene, low vacancies, and prices haven’t gone totally nuts yet.
-
Charlotte, NC – A nice mix of appreciation and rental demand. Bit more competitive, but still some good opportunities.
What makes these places appealing usually comes down to things like job growth, affordable prices, and decent rent-to-price ratios. Also helps if the area’s landlord-friendly
I wouldn't say Jacksonville FL is hot right now. There has been an over building the past few years, rents have dropped 10-25% depending on property type and area, yes there is still steady population and job growth but there's been more supply than demand lately. Combine that with increased interest rates and insurance costs it's been a very tough market as of late. I think you can definitely buy into we are now closer to the bottom than the top if all things remain equal, since new construction starts fell off a cliff in 2024 and are shown to stay low for the next few years, but right now in the moment it is tough to make deals pencil out.
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- 1yMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
Kansas City - The real estate market here has been particularly dynamic, with a steady increase in property values driven by both local and out-of-state buyers seeking affordability and quality of life. Additionally, the city's strategic location and robust infrastructure make it an attractive hub for logistics and distribution companies
Kansas City offers a promising market with a rich tapestry of cultural and economic advantages, making it an excellent location for investment and growth. Let's connect! - Lakewood NJ · Member since 2021 · 45 posts · 16 votes1y
@Benjamin Louie keep in mind evictions in Philadelphia pa take 6-8 months stick with the suburbs where its 6 weeks
- Lakewood NJ · Member since 2021 · 45 posts · 16 votes1y
@Kyle Lam Upper Darby Bucks County levvitown good places to buy i have rentals there evictions are quick
Philadelphia city 6-8 months
- 1yBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
I personally think a place makes a good investment if you have a competitive advantage in the city over others. You have a competitive advantage if you know the area better than someone who might be investing remotely.
Think about a city you grew up in, a city you live in, a city you visit often(Friends / Family), a city you vacation often.
Best of luck!
Basit Siddiqi CPA4.979 Reviews - Martinsville, VA · Member since 2025 · 6 posts · 6 votes1y
Hey Kyle, good question! I just joined BiggerPockets too and have been following a lot of these posts to get more insights!
I keep hearing Indianapolis, Cleveland, and Charlotte come up for rentals since they’re affordable and have steady demand. Basit’s point about having a local edge is spot on too.
Are you looking more for cash flow plays or appreciation markets?
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
What other Midwest city has as much investment planned as Detroit, yet offers such affordable real estate investments?
$2.5B New Center by Henry Ford Health, Pistons owner and Michigan State University
https://www.clickondetroit.com/news/local/2023/02/08/incredible-investment-in-our-city-25b-detroit-neighborhood-redevelopment-to-begin-in-2024/$1.5B Investment, 12,000 temp jobs, 6,000 New Jobs: District Detroit Development
https://www.detroitnews.com/story/business/2022/11/15/district-detroit-1-5b-development-to-include-housing-retail-hotels/69649853007/$1.4B Total as Hotel Added to Hudson Site
$439M Gilbert Foundation investment in Detroit
$400M Investment, 517 New Jobs: Norway’s Nel Hydron
$300M Huntington Place Renovations & New Detroit Hotel
https://www.crainsdetroit.com/real-estate/huntington-place-renovations-new-hotel-deal-reached
$200M Chase Investment in Detroit
https://www.axios.com/2023/09/28/detroit-rebound-jp-morgan-investment
$44M Investment, 237 New Jobs: Bollinger Motors
https://michauto.org/bollinger-motors-plans-44m-metro-detroit-investment/
$21.5M Investment for Detroit west side Dexter Neighborhood
$20.6M Investment, 186 New Jobs: BorgWarner
https://www.crainsdetroit.com/auto-suppliers/borgwarner-invest-206-million-create-186-jobs
$11M, 200 New Jobs: Volkswagen Scout Brand Investment in Detroit
https://www.teslarati.com/volkswagen-scout-11-million-detroit-investment/
New Detroit Developments to Be Excited About
3 International Companies Choose Detroit
https://www.detroitregionalpartnership.com/international-investment-comes-to-detroit-region/
6 New Residential Developments in Detroit
https://detroitisit.com/6-new-residential-developments-in-detroit-to-know-about/
Contact us with any questions you have.
Logical Property Management4.9458 Reviews - Rental Property Investor · Grapevine, TX · Member since 2020 · 136 posts · 52 votes1y
Quote from @Kyle Lam:
Hi All!
I wanted to create a post to get a better idea of what other areas are good for investing in rental properties. I am currently located in the Philadelphia area. In general I wanted to ask and see what are some of the best cities to get into for rental investments and what particular makes these cities good places to invest in. Would love to get honest feedback from anyone out there!Look into the OKC, Tulsa, and Little Rock markets. There's plenty of inventory fit for rentals along with reasonable price points.
- Huntsville, AL · Member since 2018 · 577 posts · 864 votes1y
Huntsville was a "sleeper pick" prior to 2019. If anything, the market here remains overheated and tough to find deals.
- Rental Property Investor · Grapevine, TX · Member since 2020 · 136 posts · 52 votes1y
Quote from @Michael S.:
Huntsville was a "sleeper pick" prior to 2019. If anything, the market here remains overheated and tough to find deals.
From your viewpoint, do you see an increase on supply/demand in Hunstville? It seems every rental we have isn't getting the attention prior to the post covid influx.
- 1yAlan AsriantsBusiness MemberReal Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
Hey Kyle! There are plenty of areas near and in the Philadelphia metro market that can be great for investment. My best suggestions before going out of state is focusing on the territory you know best, your neighborhood. Too many newer investors go out of state chasing returns and fall into the trap of: poor management, unrealistic expectations, real numbers and on paper numbers don't match, evictions, poor tenant quality, etc.
its tough enough to invest in your own neighborhood. Going out of state makes that 100x harder. A lot of trust is required into people you barely know. Buying local allows you to have more control. Focus on your area. Buy the right property in the right location. If you are still renting, shift to a househack mindset first to get the ball rolling. You will kill 2 birds with 1 stone by securing an investment and a roof over your head. With a househack it makes property management more manageable (pun intended)
Good luck and reach out anytime.
Alan Asriants - New Century Real Estate 590 Reviews - 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Since you’re in Philly, I completely get the desire to explore other markets where price-to-rent ratios are stronger and properties can cash flow from day one. A few markets that consistently stand out for rental properties are:
Midwest – Cities like Akron & Canton, OH and Memphis, TN are known for affordable single-family rentals in the $140k–$200k range with solid rent-to-price ratios. They also benefit from steady demand, blue-collar job bases, and landlord-friendly laws.
Southeast – Birmingham, AL and Columbus, GA are investor favorites because of population growth, affordability, and strong rental demand. Plus, you’ll often find new construction rentals with builder incentives that help cash flow better.
Secondary/Suburban markets – Instead of competing in major metros, looking at surrounding areas (outside Atlanta, Dallas) can mean lower entry costs with solid appreciation potential.
What makes these markets attractive for investors is the combination of affordability, stable job growth, and landlord-friendly regulations. They allow you to scale more easily compared to high-cost, low-yield markets.
If you’re newer to out-of-state investing, I’d recommend starting with turnkey single-family rentals where the property is already rehabbed or it's a new build (often times even leased) and management is in place. It removes a lot of the operational headaches while you’re learning the ropes.
Happy to share more detail on specific neighborhoods and what's worked for other investors. Best of luck! - 1yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
Not a fan of allowing landlord tenant law influence where to invest. Focus on the fundamentals of the real estate and learn how to operate your business in a manner where you avoid conflicts and tenant disputes. If an investor believes the favorable landlord tenant laws are required mitigate the risks associated with investing in specific markets, the market likely lacks the fundamentals that are most likely to translate to profitability.
- Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes1y
IN FULL DISCLOSURE, I have lived in Jacksonville my entire life and own 25 rentals here. I am a full time investor focused RE agent.
If you live in a gateway city, don't even bother looking, your rowing against the current. Sure people say, I will buy for cash and a take a yearly loss and wait it out and sell it someday. If that is your situation buy the S&P index fund and just let it ride. Typically these city's have unfriendly landlord laws, long evictions tenant rights that encourage bad behavior. Ask the NYC rent-controlled apartments how that is going? To bring units up to code, will cost more than all the rent for the next 5 years.
Looking at the nationwide demographic. People are moving south and west. The gateway cities in the south have some of the same problems. Miami is a good example if you bought pre covid, you are a genius and are killing it now. If you are trying to buy in now you are to late.
Now my market, Jacksonville, is benefiting from the migration growth. People who want to leave the Northeast and west coast, but do not want to pay Miami prices are coming here. Florida has low property taxes, a diverse and growing economy. Insurance in Florida is higher than other places, but it is stabilizing as the claim laws and assignment of risk laws are being re-written.
If you like media lists of best of….Jacksonville shows up on those lists. We also show up on the negative lists, "worst place for left handed single gear bicyle riders", obviously an overstatement, but you get my point!
It is not a one data point deciscion to invest in any city or at all. In total, my analysis is RE is an amazing investment over the long term and I belive Jacksonville will continute to be at the forefront of that class of investment.
- 1yStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Lesley Resnick I highly disagree. You can buy real estate in gateway cities that cash flow, although it takes more effort. Barriers prevail overtime and that's why these gateway markets have historically outperformed other markets. Perhaps investors catch the wave just right in other markets, but most don't. Most buy in non- gateway cities for the wrong reasons: they are chasing cash flow, unit counts, want landlord friendly laws, only market they can afford to own real estate in are common reasons. None of which are indicators of sustained profitability. I would also take properly screened tenants living in A/B and possibly even C located housing in gateway cities over the tenants in areas that may have "friendlier landlord tenant laws". The bad behavior is more likely to originate in the lowest tier real estate in those markets. Not saying you are guaranteed to be profitable in gateway cities, but buying right in gateway cities and operating your real estate well is usually a winning recipe.
- 1yJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Kyle Lam:
Hi All!
I wanted to create a post to get a better idea of what other areas are good for investing in rental properties. I am currently located in the Philadelphia area. In general I wanted to ask and see what are some of the best cities to get into for rental investments and what particular makes these cities good places to invest in. Would love to get honest feedback from anyone out there!Hey Kyle, welcome to BP! If you’re looking outside Philly for rental investments, I’d definitely suggest taking a close look at Columbus, Ohio. I moved from Portland, Oregon to Columbus in 2020 to start investing and now own 10+ rentals here, and it’s easy to see why it’s such a hot market for both new and experienced investors. The city is growing fast with strong population and job growth, and major companies like Intel, Amazon, Google, Facebook, Honda, Microsoft, LG, and Anduril are moving in or expanding, which keeps rental demand high and appreciation potential strong. The market is still affordable enough to find properties in the $120K–180K range that hit the 1% rule and cash flow from day one, plus it’s very landlord-friendly, making property management a lot simpler, even for out-of-state investors. It’s a solid combination of cash flow, long-term growth, and relatively low entry price compared to other metros, which is why so many people are paying attention here. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 1yLindsay DavisBusiness MemberReal Estate Broker · Birmingham, AL · Member since 2019 · 322 posts · 200 votes
To expand on @Benjamin Louie's Huntsville recommendation, several towns in the metro area (but outside the city proper itself) may also be worth a closer look.
For example, you have areas like Decatur (25 miles southwest from downtown Huntsville), Athens (30 miles west of downtown), and Meridianville (10 miles north of downtown).
Homes in these suburbs are roughly 20% to 30% cheaper than in Huntsville proper, but you can potentially benefit from the same demographic and economic tailwinds as you would by buying in Huntsville itself. Just some food for thought.
Spartan Invest4.8134 Reviews - 1yKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
Hey @Kyle Lam, the “best” city really depends on your goals, whether that’s strong cash flow or long-term appreciation. A good market usually has steady tenant demand, job and population growth, landlord-friendly laws, and room for value-add opportunities like light rehab or improved management. A quick way to test cash flow potential is the rent-to-price ratio (close to the 1% rule works well). It’s also smart to look for diverse employment bases rather than cities that rely on one industry. Strong property management is key, especially if investing out of state.
If starting out in Philly, focusing nearby can make the learning curve easier. Once some experience is built, it’s much smoother to branch into other markets with a proven system in place.
Kerlous Tadres | Reafco Real Estate540 Reviews - 1yBernice RetzloffPro MemberMemphis, TN · Member since 2024 · 234 posts · 100 votes
Hello @Kyle Lam!
Great question! And honestly one a lot of us wrestle with when first looking to scale. A “good” market usually comes down to a balance of affordability, rental demand, landlord-friendly laws, and economic stability. That’s why certain Midwest and Southeast markets keep coming up.
For example, Memphis has been strong for out-of-state investors because of:
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Entry prices often between $100K–$150K for solid rental stock
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Steady rental demand (a big percentage of the population rents long-term)
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Landlord-friendly environment compared to states like PA/NJ/NY
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Plenty of property management companies that already work with remote investors
Other markets people look at for similar reasons include Indianapolis, Birmingham, Kansas City, and parts of Ohio. The key is finding one market you can learn deeply and build a local team in rather than spreading too thin.
If Memphis ever comes to mind as you explore options, I’d be glad to share more about how investors are making rentals work here.
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- Lender · Hinton, WV · Member since 2025 · 128 posts · 53 votes1yKyle — great question, and one a lot of investors wrestle with when they’re looking beyond their backyard. A few markets that consistently come up for rentals: • Midwest (Columbus, Indianapolis, Cleveland): Affordable entry prices, solid rent-to-price ratios, landlord-friendly states. • Southeast (Charlotte, Raleigh, Jacksonville, Birmingham): Strong job/population growth, good appreciation potential, and still relatively affordable compared to coastal metros. • Texas (San Antonio, Houston suburbs): Larger markets, diverse economies, and historically steady rental demand. What makes them “good” usually boils down to three things: 1. Cash Flow: Rent-to-price ratios that support DSCR > 1.2 without over-leveraging. 2. Growth: Population and job trends that support long-term appreciation. 3. Landlord Laws: States/municipalities where eviction and lease enforcement aren’t overly restrictive. On my side, I help investors get financing lined up for both short-term value-add plays and long-term rentals (up to 80% leverage on 30-year terms ). That way, once you find a market you like, you’re ready to act when the right property comes up. Curious — are you looking more for stable cash flow markets, or would you lean toward growth/appreciation plays even if the cash flow’s a little tighter?
- Lender · Las Vegas, NV · Member since 2013 · 28 posts · 7 votes1y
Great question, Kyle. A lot of investors I work with are looking at markets where rent-to-price ratios still make sense and financing options line up with cash flow — places like the Midwest and parts of the Southeast. Happy to share what I’ve been seeing if that helps
- 1yCameron TopePro MemberProperty Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
Hey Kyle,
The area that's best for you to invest is one where you have (or can create) a competitive advantage.
For some, that's leveraging their construction background in their local area. For others, it's building a team of A players in a particular market.
Every market has it's pros and cons, and there are people making (and losing) money in every market.
Ask yourself, what's the area where you'll have the biggest competitive advantage?
Then go crush it!
Best of luck!
- Huntsville, AL · Member since 2018 · 577 posts · 864 votes1y
@Michael Ewers - market here is very strange right now for both sales and rentals.
What we've seen with sales is either a property sells within one week with multiple offers, or it sits on the market for 3 to 6 months.
Rentals have been similar - they either lease within 2 weeks, or sit for 4 to 6 weeks and sometimes are requiring a price reduction to get them moved. Our turnover / vacancy rates have been higher in the past 6 months as well.
Overall, supply is currently higher than demand in my opinion.
- Rental Property Investor · Grapevine, TX · Member since 2020 · 136 posts · 52 votes1y
Quote from @Michael S.:
@Michael Ewers - market here is very strange right now for both sales and rentals.
What we've seen with sales is either a property sells within one week with multiple offers, or it sits on the market for 3 to 6 months.
Rentals have been similar - they either lease within 2 weeks, or sit for 4 to 6 weeks and sometimes are requiring a price reduction to get them moved. Our turnover / vacancy rates have been higher in the past 6 months as well.
Overall, supply is currently higher than demand in my opinion.
Agreed! The thing that gets me is that out of state investors put Huntsville in some utopia real estate market. I believe it's time the real estate world cools down on the Huntsville hype due to out of state investors getting painted a pipedream. Unfortunately right now it's a numbers game and it's tough to determine what is moving quickly compared to the 3-6 months DOM you mentioned.
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