2026 ranking · September 2026 data

The best markets for a first rental in 2026

Saginaw, MI needs the least cash for a rental to break even: about $33,000 down, or 20% of the $165,000 median listing, lets the 2-bedroom fair market rent cover principal, interest and property tax at 7.28%. Albany, GA and Peoria, IL follow among 287 metros with at least 500 active listings.

SOBy Samuel Okonkwo
Property Investment Analyst
LVReviewed by Lena Voss
Housing Market Editor
Published July 5, 2026 · Updated October 5, 2026Editorial persona: WealthyBud bylines are editorial personas, not real individuals. Pages are produced by the WealthyBud research team from the public data cited on each page.
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Where can a first rental break even with the least cash?

Saginaw, MI needs the least cash for a rental to break even: about $33,000 down, or 20% of the $165,000 median listing, lets the 2-bedroom fair market rent cover principal, interest and property tax at 7.28%. Albany, GA and Peoria, IL follow among 287 metros with at least 500 active listings.

Least cash to break evenSaginaw, MI$33,000 down (20%)
Typical metro$225,00058% down to break even
Break even with 20% down0of 287 liquid metros

Most first-time landlords are limited by cash, not by yield. This list answers one question for each metro: how much do you have to put down on the median listing before the published 2-bedroom fair market rent covers the mortgage payment and property tax? Only metros with at least 500 active listings qualify, so there are enough homes to choose from and buyers when you sell. In the typical qualifying metro you need 58% down; in 0 of 287 a standard 20% down payment is enough. For a ranking that weighs yield and price growth, see the best places to buy rental property; for pure yield across every metro, the cash-flow dashboard.

1

Saginaw, MI

$165,000 median list · -7.0% YoY · $1,117/mo 2BR fair market rent
$33,000
Cash to break even
20%
Down payment needed
520
Active listings
2

Albany, GA

$197,000 median list · +2.7% YoY · $1,129/mo 2BR fair market rent
$61,000
Cash to break even
31%
Down payment needed
579
Active listings
3

Peoria, IL

$179,300 median list · -0.4% YoY · $1,039/mo 2BR fair market rent
$75,000
Cash to break even
42%
Down payment needed
658
Active listings
4

Macon, GA

$239,945 median list · -1.6% YoY · $1,291/mo 2BR fair market rent
$79,000
Cash to break even
33%
Down payment needed
1,029
Active listings
5

Lake Charles, LA

$241,495 median list · +0.6% YoY · $1,172/mo 2BR fair market rent
$83,000
Cash to break even
34%
Down payment needed
784
Active listings
6

Houma, LA

$235,000 median list · +4.4% YoY · $1,102/mo 2BR fair market rent
$87,000
Cash to break even
37%
Down payment needed
768
Active listings
7

Huntington, WV

$212,450 median list · -5.6% YoY · $976/mo 2BR fair market rent
$88,000
Cash to break even
41%
Down payment needed
730
Active listings
8

Akron, OH

$233,750 median list · -5.5% YoY · $1,268/mo 2BR fair market rent
$91,000
Cash to break even
39%
Down payment needed
1,241
Active listings
9

Shreveport, LA

$239,950 median list · -3.7% YoY · $1,111/mo 2BR fair market rent
$96,000
Cash to break even
40%
Down payment needed
1,300
Active listings
10

Pittsburgh, PA

$245,000 median list · -3.9% YoY · $1,281/mo 2BR fair market rent
$98,000
Cash to break even
40%
Down payment needed
6,539
Active listings
11

Youngstown, OH

$208,438 median list · -0.7% YoY · $973/mo 2BR fair market rent
$102,000
Cash to break even
49%
Down payment needed
978
Active listings
12

Flint, MI

$217,375 median list · +3.6% YoY · $1,033/mo 2BR fair market rent
$103,000
Cash to break even
48%
Down payment needed
1,196
Active listings
13

Toledo, OH

$219,675 median list · -9.4% YoY · $1,076/mo 2BR fair market rent
$105,000
Cash to break even
48%
Down payment needed
1,204
Active listings
14

Dayton, OH

$244,363 median list · -2.2% YoY · $1,273/mo 2BR fair market rent
$106,000
Cash to break even
43%
Down payment needed
2,012
Active listings
15

Jonesboro, AR

$242,450 median list · -2.9% YoY · $1,013/mo 2BR fair market rent
$110,000
Cash to break even
45%
Down payment needed
616
Active listings
16

Lansing, MI

$249,000 median list · -8.5% YoY · $1,268/mo 2BR fair market rent
$111,000
Cash to break even
45%
Down payment needed
1,032
Active listings
17

Myrtle Beach, SC

$315,000 median list · -1.6% YoY · $1,465/mo 2BR fair market rent
$114,000
Cash to break even
36%
Down payment needed
5,784
Active listings
18

Beaumont, TX

$235,041 median list · 0.0% YoY · $1,103/mo 2BR fair market rent
$114,000
Cash to break even
49%
Down payment needed
1,281
Active listings
19

New Orleans, LA

$287,000 median list · -8.8% YoY · $1,323/mo 2BR fair market rent
$114,000
Cash to break even
40%
Down payment needed
3,892
Active listings
20

Florence, SC

$263,105 median list · -2.4% YoY · $1,111/mo 2BR fair market rent
$115,000
Cash to break even
44%
Down payment needed
606
Active listings
21

Detroit, MI

$274,950 median list · 0.0% YoY · $1,413/mo 2BR fair market rent
$115,000
Cash to break even
42%
Down payment needed
12,050
Active listings
22

Lubbock, TX

$239,450 median list · -3.8% YoY · $1,155/mo 2BR fair market rent
$115,000
Cash to break even
48%
Down payment needed
1,695
Active listings
23

Mobile, AL

$259,950 median list · -1.9% YoY · $1,083/mo 2BR fair market rent
$117,000
Cash to break even
45%
Down payment needed
1,353
Active listings
24

Hinesville, GA

$279,800 median list · -2.9% YoY · $1,350/mo 2BR fair market rent
$118,000
Cash to break even
42%
Down payment needed
778
Active listings
25

Evansville, IN

$259,225 median list · -3.2% YoY · $1,113/mo 2BR fair market rent
$120,000
Cash to break even
46%
Down payment needed
817
Active listings

How is the cash to break even calculated?

Monthly property tax = the September 2026 median listing price × the metro's Census ACS effective tax rate ÷ 12. The largest 30-year loan the rent can carry = (2BR fair market rent − property tax) ÷ the monthly payment factor at 7.28% (Freddie Mac PMMS, 2026-10-01). Cash to break even = median listing price − that loan. Insurance, HOA, vacancy, repairs and closing costs are excluded, so real cash needs are higher. Universe: 287 metros with a fair market rent, a tax rate and at least 500 active listings.

Frequently asked questions

How much cash do you need to buy a first rental property in 2026?
For the 2-bedroom fair market rent to cover principal, interest and property tax at 7.28%, the typical liquid US metro needs about 58% down on the median listing, around $225,000. Saginaw, MI needs the least at $33,000. Closing costs and reserves come on top.
Why only metros with at least 500 active listings?
A first rental needs choice when buying and buyers when selling. Requiring 500 active listings leaves out small markets where a few listings swing prices; those still appear on the cash-flow dashboard.
Which market ranks #1 on WealthyBud's the best markets for a first rental in 2026 list?
Saginaw, MI ranks first on this list, based on September 2026 data. Saginaw, MI needs the least cash for a rental to break even: about $33,000 down, or 20% of the $165,000 median listing, lets the 2-bedroom fair market rent cover principal, interest and property tax at 7.28%. Albany, GA and Peoria, IL follow among 287 metros with at least 500 active listings.
How is this ranking calculated?
How is the cash to break even calculated?Monthly property tax = the September 2026 median listing price x the metro's Census ACS effective tax rate / 12. The largest 30-year loan the rent can carry = (2BR fair market rent − property tax) / the monthly payment factor at 7.28% (Freddie Mac PMMS, 2026-10-01). Cash to break even = median listing price − that loan.
Is this list investment advice?
No. It is a data-derived screen computed from the public sources cited on this page, using the formula shown above. It does not account for a specific property's condition, taxes, insurance, financing or your goals, so verify any market independently and run real numbers before you buy.
SO

Samuel Okonkwo Property Investment Analyst

Samuel Okonkwo is a property investment analyst who covers cap rates, cash-flow modeling and rental-property ROI for single-family and small multifamily investors. He builds his models from public rent and price data to help readers compare markets objectively.

Editorial persona: WealthyBud bylines are editorial personas, not real individuals. Pages are produced by the WealthyBud research team from the public data cited on each page.

Based on public records and industry data, as of September 2026; refreshed as sources update. Full formulas and source limits: full methodology. Rankings and scores are data-derived opinions for research, not investment advice — verify current conditions with a local agent, lender or MLS before acting.