Price-to-Rent Ratios for MFR

Hi Everyone,

I'm just getting started in out-of-state investing and am in the process of narrowing down the market I want to invest in. I've been looking into areas like Birmingham, Alabama and Indianapolis, Indiana for multifamily residences, but figured I should be going about this a little more analytically. I read previously that price to rent ratios above 16% were considered favorable for buy and hold investors, but wanted to get the community's thoughts on how you incorporate these ratios into your analysis on the macro (different markets) and micro (inside a specific market) level.

Do you shoot for a specific number when looking at markets from a macro level?

How does this number affect your decision on the amount you're willing to spend rehabbing a property?

Should I be prioritizing this number over other numbers? ie: job growth, population growth, etc.

Thanks in advance everyone!

Jordan