| Rank | Metro | Median list price (Sep 2026) | 2BR fair market rent | Gross yield | FHFA 1-yr | FHFA 5-yr | Rent / P&I |
|---|---|---|---|---|---|---|---|
| 1 | Rochester, NY | $298,350 | $1,573 | 6.33% | 4.5% | 61.9% | 96% |
| 2 | Scranton-Wilkes-Barre, PA | $271,500 | $1,252 | 5.53% | 7.5% | 56.7% | 84% |
| 3 | Syracuse, NY | $304,894 | $1,392 | 5.48% | 6.1% | 64.1% | 83% |
| 4 | Dayton, OH | $244,363 | $1,273 | 6.25% | 5.3% | 49.7% | 95% |
| 5 | New Haven, CT | $425,000 | $1,969 | 5.56% | 6.0% | 54.9% | 85% |
| 6 | Reading, PA | $327,400 | $1,575 | 5.77% | 4.6% | 54.0% | 88% |
| 7 | Youngstown-Warren, OH | $208,438 | $973 | 5.60% | 4.8% | 55.0% | 85% |
| 8 | Buffalo, NY | $267,450 | $1,343 | 6.03% | 4.4% | 50.8% | 92% |
| 9 | Cleveland, OH | $259,900 | $1,268 | 5.86% | 4.4% | 48.1% | 89% |
| 10 | Lansing-East Lansing, MI | $249,000 | $1,268 | 6.11% | 5.1% | 43.0% | 93% |
2026 ranking · September 2026 data
Best Places to Buy Rental Property in 2026
Rochester, NY is the best place to buy rental property in 2026 among 137 large US metros, with a 6.33% gross yield and 61.9% five-year price growth. Scranton-Wilkes-Barre, PA and Syracuse, NY follow. The catch: at Freddie Mac's 7.28% rate on October 1, 2026, typical rent covers principal and interest in just one metro, Peoria, IL.
Ranking built by WealthyBud from HUD FY2026 fair market rents, Realtor.com September 2026 listing prices, FHFA house price indexes through 2026 Q2 and Freddie Mac's October 1, 2026 mortgage rate. Screening data for education, not investment, tax or legal advice.
Sources: HUD FY2026 Fair Market Rents; Realtor.com Residential Data (September 2026); FHFA all-transactions HPI (2026 Q2 vs 2025 Q2 and 2021 Q2); Freddie Mac PMMS (October 1, 2026). Rent / P&I = 2BR fair market rent divided by principal and interest on the median list price with 20% down at 7.28% for 30 years. WealthyBud calculations.
How did we rank the best places to buy rental property?
We screened 137 large US metros and scored each on rent-to-price yield (50%), five-year FHFA price growth (30%) and one-year growth (20%). Yield is HUD's FY2026 2-bedroom fair market rent times 12, divided by Realtor.com's September 2026 median list price. Every input is a published government or listing dataset, dated below.
The method, step by step:
- Universe. The 150 largest metros by households in Realtor.com's data, keeping those with at least 300 active listings in September 2026 and an FHFA metro price index. That left 137 metros.
- Yield (50%). Annual 2-bedroom fair market rent from HUD's FY2026 FMR file, divided by the median list price. The median metro yields 4.64%.
- Appreciation (50%). FHFA's all-transactions house price index for each metro, 2026 Q2 against 2021 Q2 (30%) and 2025 Q2 (20%). The median metro gained 43.0% over five years and 3.4% over one year.
- Cash-flow test. Principal and interest on the median list price with 20% down at the Freddie Mac PMMS 30-year rate of 7.28% (October 1, 2026), compared with the fair market rent.
Each factor is a percentile rank, so a top-10 metro beats most of the field on both yield and growth. Large metros only: this list leaves out small markets with higher yields, which our live cash-flow dashboard still tracks. First-time landlords who care most about the cash needed to start should use the first-rental list.
What are the best places to buy rental property in 2026?
The top 10 are Rochester, Scranton-Wilkes-Barre, Syracuse, Dayton, New Haven, Reading, Youngstown-Warren, Buffalo, Cleveland and Lansing-East Lansing. Nine of the ten are in New York, Pennsylvania, Ohio and Michigan, and all nine list below the 137-metro median price of $379,900. All ten match or beat the 43.0% median five-year FHFA gain.
1. Rochester, NY
Verdict: Rochester is the strongest all-round rental market in our screen. A $1,573 fair market rent on a $298,350 median listing gives a 6.33% gross yield, third-highest of the 137 large metros, and FHFA prices rose 61.9% over five years. Rent covers 96% of principal and interest. Rochester market data.
- 1-year FHFA gain: 4.5%. Median days on market: 34 (September 2026).
- Rent covers principal and interest at rates below about 6.91%, our calculation.
2. Scranton-Wilkes-Barre, PA
Verdict: Scranton-Wilkes-Barre pairs the fastest one-year growth in the top 10, 7.5% per FHFA, with a $271,500 median list price. Its 5.53% yield is above the 4.64% median, and five-year growth reached 56.7%. Rent covers 84% of principal and interest, so expect to bring cash each month at today's rates. Scranton-Wilkes-Barre market data.
- 22% of listings had a price cut in September 2026, per Realtor.com, which gives buyers room to negotiate.
3. Syracuse, NY
Verdict: Syracuse posted the biggest five-year gain in the top 10, 64.1% per FHFA, and kept growing at 6.1% over the past year. The trade-off is yield: a $1,392 fair market rent on a $304,894 median list price works out to 5.48%. It suits investors who weight appreciation slightly more than monthly cash flow. Syracuse market data.
- Rent covers 83% of principal and interest at 7.28% with 20% down.
4. Dayton, OH
Verdict: Dayton is the cash-flow pick of the top five. A $244,363 median list price and $1,273 fair market rent give a 6.25% gross yield, and rent covers 95% of principal and interest. Five-year growth of 49.7% sits above the median. It also had 2,012 active listings in September, the second-deepest supply in the top 10. Dayton market data.
- Median list price changed -2.2% year over year, per Realtor.com, while FHFA prices rose 5.3%.
5. New Haven, CT
Verdict: New Haven is the priciest market on the list, with a $425,000 median list price, but its $1,969 fair market rent, the highest in the top 10, keeps the yield at 5.56%. FHFA prices rose 6.0% over one year and 54.9% over five. Higher prices mean a larger down payment, about $85,000 at 20%. New Haven market data.
- Median list price changed -10.1% year over year, the biggest drop in the top 10, per Realtor.com.
6. Reading, PA
Verdict: Reading offers a 5.77% yield with a $1,575 fair market rent on a $327,400 median listing, plus 54.0% five-year price growth. It is a thinner market, with 542 active listings in September 2026, the fewest in the top 10, so expect fewer choices and more competition for good rental properties. Reading market data.
- Rent covers 88% of principal and interest; median time on market was 36 days.
7. Youngstown-Warren, OH
Verdict: Youngstown-Warren has the lowest entry price in the top 10, a $208,438 median listing, which makes it the easiest market to start in. Its $973 fair market rent gives a 5.60% yield, and FHFA prices rose 55.0% over five years. Lower rents also mean smaller margins for repairs and vacancy. Youngstown-Warren market data.
- Down payment at 20%: about $41,700. Rent covers 85% of principal and interest.
8. Buffalo, NY
Verdict: Buffalo combines a 6.03% gross yield with 50.8% five-year growth and deep supply, 1,856 active listings in September 2026. A $1,343 fair market rent on a $267,450 median listing covers 92% of principal and interest. It is a solid pick for investors who want choice and a yield above 6%. Buffalo market data.
- Median list price changed -2.7% year over year, per Realtor.com.
9. Cleveland, OH
Verdict: Cleveland has the deepest market in the top 10, with 4,417 active listings in September 2026, and a 5.86% yield on a $259,900 median listing. FHFA prices rose 48.1% over five years. Rent covers 89% of principal and interest. It suits investors planning to buy several properties in one metro. Cleveland market data.
- 21% of listings had a price cut in September 2026, per Realtor.com.
10. Lansing-East Lansing, MI
Verdict: Lansing-East Lansing rounds out the list with a 6.11% gross yield, the third-highest in the top 10, on a $249,000 median listing. Its five-year FHFA gain of 43.0% is at the 137-metro median, the weakest growth in the group. Rent covers 93% of principal and interest, so it leans toward cash flow. Lansing-East Lansing market data.
- Median list price changed -8.5% year over year, per Realtor.com.
How do ranks 11 to 25 compare?
Just outside the top 10, Waterbury-Shelton, CT, Peoria, IL and Hartford, CT rank 11th to 13th. Peoria, IL has the highest gross yield of any large metro at 6.95% but ranks 12th because its five-year FHFA gain of 44.6% is close to the 43.0% median. The table shows yield, growth and rent coverage for ranks 11 to 25.
| Rank | Metro | Median list price | Gross yield | FHFA 5-yr | Rent / P&I |
|---|---|---|---|---|---|
| 11 | Waterbury-Shelton, CT | $404,450 | 5.30% | 55.2% | 81% |
| 12 | Peoria, IL | $179,300 | 6.95% | 44.6% | 106% |
| 13 | Hartford, CT | $449,900 | 4.97% | 57.7% | 76% |
| 14 | McAllen-Edinburg-Mission, TX | $258,750 | 4.92% | 54.5% | 75% |
| 15 | Huntington-Ashland, WV | $212,450 | 5.51% | 44.9% | 84% |
| 16 | Akron, OH | $233,750 | 6.51% | 46.3% | 99% |
| 17 | Harrisburg-Carlisle, PA | $326,859 | 5.48% | 48.6% | 83% |
| 18 | Savannah, GA | $399,900 | 5.04% | 63.5% | 77% |
| 19 | Albany-Schenectady-Troy, NY | $419,975 | 4.86% | 51.0% | 74% |
| 20 | Fayetteville, NC | $281,000 | 5.20% | 57.1% | 79% |
| 21 | Springfield, MA | $377,450 | 5.51% | 44.3% | 84% |
| 22 | Allentown, PA | $412,225 | 4.85% | 53.5% | 74% |
| 23 | Toledo, OH | $219,675 | 5.88% | 42.8% | 89% |
| 24 | Canton, OH | $266,475 | 4.89% | 49.1% | 74% |
| 25 | Indianapolis, IN | $310,000 | 5.63% | 43.8% | 86% |
Can rental property cash flow at a 7.28% mortgage rate?
Barely, in most large metros. With 20% down at Freddie Mac's 7.28% average on October 1, 2026, the 2-bedroom fair market rent covered principal and interest in only 1 of 137 metros: Peoria, IL, at 106%. In the median metro, rent covered 71% of the payment, and that is before taxes, insurance, vacancy and repairs.
Peoria, IL ranks 12th overall, with a 6.95% gross yield on a $179,300 median listing, but slower five-year growth (44.6%) keeps it out of the top 10.
Vacancy is the other drag. The Census Bureau's Housing Vacancies and Homeownership survey put the national rental vacancy rate at 7.3% in the second quarter of 2026, compared with 7.0% a year earlier, a difference the Census Bureau says is not statistically significant. See our rental vacancy statistics for the trend.
To turn a screen into a deal, use the deal analyzer with the property's real taxes, insurance and rent, and compare its cash-on-cash return with other uses of the money.
What are the alternatives if these markets don't fit?
Pick a different list if your goal is different. For the highest yields regardless of metro size, use our cash-flow dashboard, which ranks small markets like Johnstown, PA at 10.35%. For growth first, see the appreciation rankings. Investors in costly coastal metros face the thinnest yields: San Jose's was 2.99%, the lowest we screened.
- Maximum yield: small metros lead on rent-to-price on the cash-flow dashboard, but with fewer listings and buyers when you sell.
- Maximum growth: see the best appreciation markets of 2026.
- Lowest cash to start: the best markets for a first rental rank entry cost and full-payment coverage.
- Lowest yields to avoid for cash flow: San Jose, CA (2.99%), Provo, UT (3.07%), Boise City, ID (3.23%), Asheville, NC (3.27%), Reno, NV (3.36%).
- Not buying directly: publicly traded REITs and real estate ETFs offer exposure without being a landlord.
Frequently asked questions
Where is the best place to buy rental property in 2026?
Rochester, New York ranks first among 137 large US metros in our October 2026 screen. Its 2-bedroom fair market rent of $1,573 against a $298,350 median list price gives a 6.33% gross yield, and FHFA prices rose 61.9% over five years. Scranton-Wilkes-Barre, PA and Syracuse, NY rank second and third.
Which cities have the best rental cash flow?
Among large metros, Peoria, IL has the highest gross yield in our screen at 6.95%, and it is the only one of 137 where the 2-bedroom fair market rent covers principal and interest at the October 1, 2026 rate of 7.28%. Akron, OH and Rochester, NY follow at 6.51% and 6.33%.
Do rental properties cash flow in 2026?
Rarely with 20% down at today's rates. Freddie Mac's 30-year average was 7.28% on October 1, 2026. At that rate, the 2-bedroom fair market rent covered principal and interest in just 1 of 137 large metros we screened, and the median metro's rent covered only 71% of the payment, before taxes and insurance.
What is a good gross rental yield?
In our 2026 screen, the median large US metro had a gross yield of 4.64%, so anything above 6% is strong. Only 8 of 137 metros cleared 6%. Gross yield is annual rent divided by price, before expenses. Investors usually also check the cap rate and cash-on-cash return once taxes, insurance and vacancy are known.
Is it better to buy rental property for cash flow or appreciation?
Most investors need some of both. High-yield metros tend to be lower-cost markets, while high-appreciation markets often have thin yields. Our ranking weights rent-to-price yield at 50% and FHFA price growth at 50%, so a top-10 metro offers above-median yield and above-median five-year growth. Your financing and time horizon should decide the tilt.
How do you choose a city to buy a rental property?
Start with rent-to-price yield, then check price momentum, vacancy and local costs. Compare the fair market rent with a full payment including taxes and insurance, check FHFA price trends for the metro, and look at listing supply. Then run a specific property through a deal analyzer before you make an offer.
Key takeaways
- Rochester, NY ranks first of 137 large metros, with a 6.33% gross yield and 61.9% five-year FHFA growth.
- The top 10 sit in New York, Pennsylvania, Ohio, Connecticut and Michigan.
- At 7.28% (Freddie Mac, October 1, 2026), rent covers principal and interest in only 1 of 137 metros, Peoria, IL.
- The median large metro yields 4.64%; only 8 clear 6%.
- National rental vacancy was 7.3% in Q2 2026, versus 7.0% a year earlier (Census; not a statistically significant change).
- Fair market rents are HUD estimates, not your lease. Underwrite each property with real numbers.
How should you read these numbers?
HUD's fair market rent is an estimate of gross rent, including utilities, at roughly the 40th percentile of recent-mover rents, not a market-rate asking rent. Realtor.com's figure is the median asking price of active listings, not a sale price. The principal-and-interest test leaves out property taxes, insurance, vacancy, management and maintenance, so real cash flow is lower than the coverage shown. Treat this ranking as a screen, not a forecast. Metro pages show FHFA data through the quarter of their last data refresh, which can lag this ranking by a quarter.
For education only, not investment, tax or legal advice. Screening data, not a property-level pro forma.