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 · 104 posts · 37 votes1y
OKC Metro. Cost of Living in other States is high so when folks start looking at cheaper options, Oklahoma pops on the list. Unless you want to live in the country in the middle of nowhere, you are moving to the OKC area. Edmond, Yukon, Mustang, OKC great for appreciation. Midwest City, Del City good for Cash Flow due to Tinker Air Force base.
- Huntsville, AL · Member since 2018 · 577 posts · 864 votes1y
@Michael Ewers - totally agree. It amazes me how many posters feel some sort of need to comment on the Huntsville market when they know nothing about it.
There is a thread on here where two individuals make statements about how great the market in Huntsville was for investing right now.
I tagged both of them in a comment, congratulated them on their success here, and asked them to share about their properties and performance here.
Crickets.
It seems like everyone who has never invested or even stepped foot in North Alabama has an "informed" opinion on the market here.
- Rental Property Investor · Grapevine, TX · Member since 2020 · 136 posts · 52 votes1y
Quote from @Michael S.:
@Michael Ewers - totally agree. It amazes me how many posters feel some sort of need to comment on the Huntsville market when they know nothing about it.
There is a thread on here where two individuals make statements about how great the market in Huntsville was for investing right now.
I tagged both of them in a comment, congratulated them on their success here, and asked them to share about their properties and performance here.
Crickets.
It seems like everyone who has never invested or even stepped foot in North Alabama has an "informed" opinion on the market here.
Exactly. It's unfortunate about the situation and trusting other "investors" advice on a market. Fingers crossed the Huntsville market can get back on track.
- New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes1y
Quote from @Michael S.:
@Michael Ewers - totally agree. It amazes me how many posters feel some sort of need to comment on the Huntsville market when they know nothing about it.
There is a thread on here where two individuals make statements about how great the market in Huntsville was for investing right now.
I tagged both of them in a comment, congratulated them on their success here, and asked them to share about their properties and performance here.
Crickets.
It seems like everyone who has never invested or even stepped foot in North Alabama has an "informed" opinion on the market here.
Michael,
What are your thoughts on markets slightly outside of Huntsville, as the ones that Lindsay Davis mentioned... Meridianville, Decatur, etc.?
- Rental Property Investor · Emmaus, PA · Member since 2021 · 152 posts · 85 votes1y
Each city offers it's own strengths and weaknesses, so it really depends on your strategy.
A city with low average incomes may still be a good and profitable buy if you're target property is low income housing. This is a very different strategy from investing in a city where real estate appreciates quickly and monthly cash flow is low. But both strategy can and do work.
That being said, the most important things I look for is to ensure there is a strong population base, and that the market isn't flooded with vacant apartments. After I confirm those two factors, I adjust my strategy to work with the property I'm looking at.
- 1yWilliam ThompsonBusiness MemberAccountant · Williamstown, NJ · Member since 2025 · 322 posts · 178 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!
Great question, Kyle! Philly has solid opportunities, but when clients ask me about other markets, I always remind them it’s less about the city’s name and more about the fundamentals—job growth, population trends, and how local taxes impact your actual cash flow. Some ‘hot’ markets look great until you factor in tax drag. Run the numbers on after-tax returns and you’ll see quickly which cities truly make sense for rentals.
RE Accounting and Tax Professionals LLC522 Reviews - Huntsville, AL · Member since 2018 · 577 posts · 864 votes1y
@Emmanuel Sanchez - we don't invest in either location for the following reasons:
Decatur - slowest growing area in North Alabama over the past 10 years in my humble opinion. Zero appreciation potential in the immediate present - if you invest there, must be a home run cash flow play. Cash flow should be obtainable in Decatur, but you'll need to be low B / high C area.
Meridianville/Hazel Green - overpriced. No industry growth in that direction. Zero appreciation potential at current prices obviously. New builds won't cash flow without at least 30 to 40 percent down.
Just my opinion on the current situation.
Be careful who's opinion you take in this regard - I have nothing to sell you.
- 1yLindsay DavisBusiness MemberReal Estate Broker · Birmingham, AL · Member since 2019 · 322 posts · 200 votes
Quote from @Michael S.:
@Emmanuel Sanchez - we don't invest in either location for the following reasons:
Decatur - slowest growing area in North Alabama over the past 10 years in my humble opinion. Zero appreciation potential in the immediate present - if you invest there, must be a home run cash flow play. Cash flow should be obtainable in Decatur, but you'll need to be low B / high C area.
Meridianville/Hazel Green - overpriced. No industry growth in that direction. Zero appreciation potential at current prices obviously. New builds won't cash flow without at least 30 to 40 percent down.
Just my opinion on the current situation.
Be careful who's opinion you take in this regard - I have nothing to sell you.
@Michael S.,
Appreciate your counterpoints. There are definitely still supply/demand imbalances in quite a few Sunbelt markets at the moment, and the Huntsville area is no exception.Single-family and multifamily new deliveries peaked in Q2 2023, so there’s still a bunch of new inventory waiting to be absorbed—hence the negative rent growth and appreciation some folks are seeing right now.
In my view, what’s interesting about places like Decatur and Meridianville is not where they are now, but where they’ll be in a decade.
The Huntsville metro area is constrained by mountainous geography to the east (beginning with Monte Sano State Park and beyond), so the natural path of development and progress is west towards Wheeler Lake and north towards Meridianville and Hazel Green.
If the Huntsville metro area continues to match the pace of demographic growth it’s seen since the 1990s, these suburbs could, in my humble opinion, look very different down the line.
Spartan Invest4.8134 Reviews - 11moSamuel CoronadoPro MemberInvestor · Huntsville, AL · Member since 2016 · 334 posts · 181 votes
Quote from @Lindsay Davis:
Quote from @Michael S.:
@Emmanuel Sanchez - we don't invest in either location for the following reasons:
Decatur - slowest growing area in North Alabama over the past 10 years in my humble opinion. Zero appreciation potential in the immediate present - if you invest there, must be a home run cash flow play. Cash flow should be obtainable in Decatur, but you'll need to be low B / high C area.
Meridianville/Hazel Green - overpriced. No industry growth in that direction. Zero appreciation potential at current prices obviously. New builds won't cash flow without at least 30 to 40 percent down.
Just my opinion on the current situation.
Be careful who's opinion you take in this regard - I have nothing to sell you.
@Michael S.,
Appreciate your counterpoints. There are definitely still supply/demand imbalances in quite a few Sunbelt markets at the moment, and the Huntsville area is no exception.Single-family and multifamily new deliveries peaked in Q2 2023, so there’s still a bunch of new inventory waiting to be absorbed—hence the negative rent growth and appreciation some folks are seeing right now.
In my view, what’s interesting about places like Decatur and Meridianville is not where they are now, but where they’ll be in a decade.
The Huntsville metro area is constrained by mountainous geography to the east (beginning with Monte Sano State Park and beyond), so the natural path of development and progress is west towards Wheeler Lake and north towards Meridianville and Hazel Green.
If the Huntsville metro area continues to match the pace of demographic growth it’s seen since the 1990s, these suburbs could, in my humble opinion, look very different down the line.
I would avoid Decatur as much as humanly possible. The demographic and political climate is similar to Detroit in 2010. It's not as business friendly as anywhere else around north Alabama. Takes almost as long to evict someone from there as it would in Birmingham.
- Huntsville, AL · Member since 2018 · 577 posts · 864 votes11mo
@Samuel Coronado - glad to see someone else on the same page as me about investing in Decatur. We won't even look at properties in Decatur.
- Huntsville, AL · Member since 2018 · 577 posts · 864 votes1y
@Lindsay Davis - always enjoy a good dialogue about local real estate.
I see zero movement to the north - Meridianville and Hazel Green are already priced at the top of the market, and I think they are due for a correction. Simply put, the jobs coming to the area are not to the north side of the city.
I agree with the growth to the west - but not toward Decatur. I think Athens isn't done growing, and there is a lot of vacant land still in Limestone county.
South Huntsville is where the money is going right now - the area near Grissom High in particular is seeing crazy amounts of building and growth. I think it will eventually extend all the way to Ditto landing, as there is a lot of land available there.
Decatur growth has been trivial compared to the rest of the area - I still think Decatur is a cash flow only play, as I don't see people moving to the area for jobs in Huntsville or Madison metro living in Decatur.
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