Markets

Best markets for cash-flowing rentals in 2026?

MidwestLandlord · 6d ago · 105 views

I have been investing in the Midwest (Indianapolis and Cleveland) for the past 3 years and have done well with DSCR loans on buy-and-hold SFRs. Looking to diversify into a new market this year.

What markets are you all targeting for long-term rentals right now? I am looking for:

Strong rent-to-price ratio (at least 0.8%)
Population and job growth
Landlord-friendly laws
Properties that will DSCR at 1.15+ with 25% down

Thinking about Memphis, Birmingham, or maybe Kansas City. Would love to hear what is working for others.

Replies

1 reply

BhamREInvestor 6d ago

Birmingham is underrated. I have 4 SFRs there and every single one DSCRs above 1.2 with 25% down. Rent-to-price is strong - I am averaging about 1% per month. Tenant quality has been good too.

Kansas City is also solid but prices have crept up in the past year. Still works but not as much margin as 2024.

Best markets for cash-flowing rentals in 2026?

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