PIE Analyzed 50 US Markets. These 10 Win.
PIE analyzed 50 US rental markets on cap rate, cash-on-cash return, price-to-rent ratio, and risk. Here are the top 10 cities for rental property investment in 2026.
The data comes from US Census Bureau population estimates, MLS rental data, county tax assessor records, and Bureau of Labor Statistics employment figures.
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| Rank | City | Cap Rate | Median Price | Median Rent | Pop. Growth (5yr) |
|---|---|---|---|---|---|
| 1 | Cleveland, OH | 8.8% | $125,000 | $1,100 | +0.3% |
| 2 | Memphis, TN | 8.2% | $145,000 | $1,200 | +0.5% |
| 3 | Indianapolis, IN | 7.6% | $185,000 | $1,350 | +2.1% |
| 4 | Birmingham, AL | 7.5% | $135,000 | $1,100 | +0.2% |
| 5 | Columbus, OH | 7.1% | $230,000 | $1,500 | +3.8% |
| 6 | Detroit, MI | 7.0% | $110,000 | $1,000 | -0.5% |
| 7 | Kansas City, MO | 6.8% | $195,000 | $1,350 | +1.5% |
| 8 | Milwaukee, WI | 6.6% | $165,000 | $1,200 | +0.4% |
| 9 | St. Louis, MO | 6.5% | $155,000 | $1,150 | +0.1% |
| 10 | Dallas, TX | 6.2% | $310,000 | $1,850 | +5.2% |
What the Data Shows
Midwest dominates cap rate. Cleveland, Indianapolis, and Columbus deliver 7–9% cap rates with sub-$250K entry prices. These are cash flow markets.
Sun Belt leads growth. Dallas (+5.2%) and Columbus (+3.8%) offer the best population growth — a leading indicator of rental demand and appreciation.
Detroit: high cap rate, declining population. The 7.0% cap rate is real, but a shrinking population signals long-term risk. Buy selectively in stable neighborhoods only.
→ Learn the financial metrics behind these cap rate calculations, and the 15-minute deal analysis framework professionals use.
"Bought a duplex in Indianapolis for $178K based on PIE's city data. Cap rate came in at 7.8% — exactly what the analysis predicted. Two years later, rent increases pushed it to 8.5%. Midwest cash flow is real."
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