The Best Places to Invest in Real Estate Right Now
The real estate market is dynamic, as home values fluctuate based on demand, location, demographics, lifestyle preferences, and the economy. Still, year after year, a few places continue to have a low rental vacancy rate and a high gross rental yield. These are the places that investors are looking at. With lucrative real estate investment opportunities in cities that offer ideal conditions and a strong rental demand, there’s never been a better time to get involved. Here, we’ll review some of the best places to buy rental property and invest in real estate.
Why Buy Investment Properties?
Investing in real estate is a powerful way to build long-term wealth and diversify your financial portfolio. And, as home value levels increase yearly, the investment property market continues to grow. Some of the most notable benefits of buying an investment property include the following:
✔ Generate a consistent, passive monthly income to supplement (or replace) your salary.
✔ Enjoy property appreciation of real estate, which can mean significant properties if (or when) you decide to sell.
✔ You can use leverage, which means you control a large asset with relatively little of your own money down.
✔ Real estate offers a hedge against inflation, as rent and property values tend to rise alongside it.
✔ Offers significant portfolio diversification and reduces overall risk in times of economic volatility.
✔ Offers long-term financial security.
✔ The ability to build equity as you pay down the mortgage.
✔ More control over your investment (i.e., decisions on who to rent to, how you manage it, and how much you charge).
While there are several benefits, choosing the right cities for real estate investment is essential. Luckily, the census provides plenty of information to help you make a decision based on your needs.
18 Best Cities to Invest in Real Estate
While the US Census Bureau only conducts a decennial census once every 10 years, it uses other data collection methods to understand employment, the economy, and even the median rent in an average home. Based on data collected from various sources, here are some cities that rank among the best places to buy real estate.
1. Dallas-Fort Worth, TX
The Dallas–Fort Worth metroplex continues attracting businesses and residents, creating a robust demand for housing. The area’s economic diversity and ongoing development projects also make it a resilient market for property investments.
Gross Rental Yield: Between 10.58% and 15.40%, depending on the city.
2. Austin, TX
Austin has emerged as a tech powerhouse, attracting major companies and a young, educated workforce. The city’s rapid population growth has led to a tight housing market, increasing home prices and rental rates. Due to the high demand for housing, this is a great city to buy a rental property in 2025. It’s also expected to continue growing, providing a high return on investment (ROI).
Gross Rental Yield: Around 10.5% on average.
3. Charlotte, NC
Charlotte’s robust financial sector and diversified economy have contributed to steady population growth. The city’s affordable housing and generally low cost of living make it attractive to young professionals and families, ensuring consistent rental demand and property appreciation.
Gross Rental Yield: Between 11.02% and 12.12%, depending on whether the property is in the city center.
4. Phoenix, AZ
Phoenix’s favorable climate and affordable cost of living have made it a popular destination for businesses and residents. The city’s strong job market and population growth have increased housing demand, offering investors opportunities for rental income and long-term appreciation. However, there is a lot of student housing, so some rental properties may face a few months with higher vacancies than usual.
Gross Rental Yield: On average, around 9%.
5. Nashville, TN
Nashville’s vibrant music scene and expanding healthcare and tech sectors have fueled significant population growth and show no signs of slowing. The city’s housing demand continues to outpace supply, leading to rising property values. With a diverse economy and cultural appeal, Nashville offers investors strong rental yields and appreciation potential.
Gross Rental Yield: Between 11.49% and 12.65%, depending on location.
6. Tampa, FL
Tampa’s growing economy and influx of high-income renters have created a robust housing market. Compared to other Florida metros like Miami, its affordability makes it an appealing option for investors seeking steady cash flow and potential appreciation. Median home prices are also slightly lower than the state median sale price.
Gross Rental Yield: 11.28% within the city center and up to 13.35% outside the center.
7. Atlanta, GA
Atlanta’s diverse economy and ongoing urban development projects have attracted a steady stream of new residents. The city’s affordable housing and strong job market make it a prime location for real estate investment, with opportunities for short-term rentals and long-term appreciation.
Gross Rental Yield: About 12.81%, regardless of location.
8. Northwest Arkansas
Northwest Arkansas’s affordability and economic expansion make it an attractive market for investors seeking growth potential. The area’s population growth and increasing housing demand offer rental income and appreciation opportunities. Some cities to look at Northwest Arkansas residential property listings include Fayetteville, Bentonville, and Rogers.
Gross Rental Yield: Generally 9% or higher. For example, in Fayetteville, AR, the GRY is 12.19%.
9. Lubbock, TX
With a stable economy and high demand for rental housing in Lubbock, TX, particularly from students and healthcare professionals, there are always rental income opportunities. The city’s affordability and steady population growth make it a viable market for real estate investment.
Gross Rental Yield: On average, between 13.27% and 15.02%.
10. Corsicana, TX
Corsicana, TX, is near Dallas, and ongoing infrastructure improvements position it as an emerging market with potential for appreciation. The city’s lower property prices compared to nearby metropolitan areas also provide affordable entry points for investors.
Gross Rental Yield: Generally around 6.1% or higher.
11. Boise, ID
Boise’s natural beauty and growing tech scene have drawn remote workers and young professionals alike. However, there hasn’t historically been a high population, so real estate can be competitive. The city’s limited housing supply and increasing demand have led to significant property value appreciation, making it an attractive market for investors.
Gross Rental Yield: On average, around 9%.
12. Raleigh, NC
Raleigh’s tech-driven economy and influx of high-income renters have created a strong rental market. The city’s quality of life and affordable housing options appeal to a wide range of tenants, offering investors stable rental income and growth potential.
Gross Rental Yield: Around 8.79% in the city center, and 11.34% outside the city center.
13. Indianapolis, IN
Indianapolis offers affordable entry points for investors, with high rent-to-price ratios and landlord-friendly laws. The city’s steady economy and growing population contribute to consistent rental demand and opportunities for cash flow.
Gross Rental Yield: Between 16.22% and 18.01%.
14. San Antonio, TX
San Antonio’s expanding economy and affordable housing market make it an appealing choice for investors. The city’s strong job growth and population increase ensure ongoing demand for rental properties and potential for property appreciation.
Gross Rental Yield: Between 7.63% and 12%, depending on location.
16. Miami, FL
Miami’s international appeal and luxury market offer high appreciation potential. While investors should consider associated risks and high upfront costs, the city’s diverse economy and strong demand for high-end properties present lucrative opportunities.
Gross Rental Yield: Between 10.24% and 11.61%.
17. Savannah, GA
Savannah’s unique character and growing tourism industry make it a promising market for both long-term and vacation rentals. The city’s historic charm and film industry growth contribute to its real estate appeal.
Gross Rental Yield: On average, about 7.53%, but can reach up to 13.36% within the city center.
18. Santa Fe, NM
Santa Fe’s rich cultural heritage and steady demand for luxury properties offer investors opportunities in the high-end market segment. The city’s resilience and appeal to affluent buyers make it a stable investment choice.
Gross Rental Yield: Between 6.4% and 8.55%, depending on location.
Ready to Become a Real Estate Investor?
Whether you’re eyeing your first rental property or expanding an existing portfolio, success hinges on choosing the right markets and having a strong support system. At First Star Realty, we’re here to help you find the perfect residential or commercial property for your investment portfolio. We also offer comprehensive property management services, meaning you won’t have to deal with the day-to-day nuances of overseeing renters. Our team handles tenant screening, rent collection, maintenance coordination, and ensures compliance with local regulations, allowing you to enjoy the benefits of passive income without all the work. To learn more about our services, send us a message today or call us at (479) 267-1600.
