Looking for yield and value this year. Start with the numbers. The national median rent sits near $1,400, down 0.9% year over year, a slight but real shift that favors careful buyers (Apartmentlist). Meanwhile, typical U.S. home values hover around $368,581, up 0.3% on the year (Zillow). Redfin pegs the national median sale price at roughly $443,019. Knowing which top 10 cities for real estate investment is critical for long-term growth. Vacancy tells a story, too. The rental vacancy rate is 7.0% in the latest quarter.

And now a tailwind. Thirty-year mortgage rates have eased to approximately 6.35% after the largest weekly drop in a year (Freddie Mac). Affordability improves when financing costs decrease, even slightly.

Put it together and you get a market where entry points matter and cash flow still rules.

So this guide provides the list of cities that balance price, rent, and staying power.

 

1. Cleveland, Ohio

Cleveland continues to punch above its weight for cash flow. Average rent runs about $1,299 a month, roughly 21% below the national norm, which helps the income math from day one. Studios average near $1,223, one bedrooms around $1,299, and two bedrooms about $1,597 (Apartments.com).

On the price side, the typical city home value sits near $113,900 and is up about 1% year over year. Listings often go pending in roughly 12 days, so line up financing before you tour. At the metro level, the Cleveland–Elyria typical value is about $247,100 and is still trending higher (Zillow).

For multifamily readers, Q2 data shows rents near $1,248 per unit, vacancy at 8.5%, and cap rates at 8.8%. With 2,652 units under construction, 305 delivered, and 592 absorbed, supply and demand look balanced. Regionally, Zillow notes the Midwest remains a rare bright spot for year-over-year gains in 2025 (Matthews).

Related – The Top 10 Safest Cities in the World 2025

 

2. Detroit, Michigan

Detroit’s appeal is simple. Entry prices are among the lowest of any major U.S. city, while average asking rent sits around $1,320 citywide, with Downtown closer to $1,836. That spread can translate to eye-catching gross yields for long-term holders who buy right and manage well (RentCafe).

Moreover, pricing momentum is improving at the metro level. Zillow reports the Detroit–Warren–Dearborn typical home value at $267,630, up 5.6% year over year and going pending in about nine days. Meanwhile, inside the city limits, the average home value is $80,676, holding steady for now (Zillow).

Liquidity helps too. In July, Detroit’s median sale price was about $105,000, and homes closed in roughly 43 days. Stabilized multifamily occupancy hit 94.8% this spring, while only 1,741 new units are expected in 2025, a 17% drop from last year. Overall, tight supply supports rents and cushions downside, making Detroit one of the top 10 cities for real estate investment (Redfin).

 

3. Pittsburgh, Pennsylvania

Pittsburgh blends value with staying power. Median rents range from $1,381 to $1,415, depending on the tracker. That is below the national average and friendly to cash flow (Apartments.com).

Home prices stay approachable. For example, the typical city home value sits near $236,500, while recent closings show a median sale price of about $252,000, with homes taking roughly 52 days to sell. Moreover, the vacancy looks manageable, too.

The rental vacancy rate is about 5.5%, a helpful hedge for year one occupancy assumptions (Point2Homes).

And demand is durable. Health care and universities anchor the economy, led by UPMC with more than 92,000 employees across the region (Pittsburgh Region. Next is Now).

Put it together, and the math works. Mid-$200,000s pricing with $1,400 rent means yields near the upper sixes. So, Pittsburgh offers affordability and steady fundamentals that investors can trust.

 

4. Indianapolis, Indiana

Indy has been quietly strong. Moreover, values for most homes hover at $230,000, and rents average about $1,500. Therefore, that math supports solid gross yields, while a competitive but not frothy market helps disciplined buyers land properties that pencil.

Crucially, national rent growth has cooled. However, Indianapolis rents have held up, keeping income projections realistic for the next 12 months. Now to the stats. Homes often go pending in 12 to 19 days, and the latest median sale price is near $255,000, keeping the market very competitive.

The city’s average home value is up about 1.5% year over year. Meanwhile, the metro unemployment rate is around 3.5%, and total nonfarm payrolls have grown 0.4% over the past year, a steady backdrop for occupancy (Zillow) and one that highlights why it remains among the top 10 cities for real estate investment.

 

5. Kansas City, Missouri–Kansas

Buy-in stays reasonable. Zillow puts the typical home value near $247,000, with many listings going pending in about 10 days. Median rents hover around $1,150–$1,200, roughly 20% under national norms, which helps cash flow pencil (Zillow).

Overall, supply and demand are in balance. Moreover, multifamily occupancy sits around 96.4%, up from 94.3% a year ago, and net absorption continues to outpace new deliveries across the metro (Cushman & Wakefield Multifamily).

Tenant demand looks durable. The area supports about 1.15 million nonfarm jobs, per the latest federal read, which helps keep units filled and turnovers in check (bls.gov), reinforcing why it ranks among the top 10 cities for real estate investment.

Also read – The Ultimate Guide to the Best U.S. Cities for Families in 2025

 

6. Birmingham, Alabama

If you prize yield, keep Birmingham on the shortlist. Moreover, typical Birmingham–Hoover home values sit near $257,500, while the city’s median rent is about $1,153. Therefore, that pairing leaves room for cash flow with conservative leverage.

Moreover, operating costs help too. In fact, Alabama’s effective property tax rate averages roughly 0.36%, among the lowest in the country. As a result, that cushion supports reserves and rehab budgets (Tax Foundation).

Supply looks manageable. Moreover, developers have slowed new deliveries, and meanwhile, recent reports show demand still absorbing units. Therefore, this setup supports rent stability through 2025 (MMG Real Estate Advisors).

 

7. Memphis, Tennessee

Memphis remains a cash flow play. Zillow puts the typical home value near $145,000, down about 1.9% year over year, with homes going pending in roughly 24 days (Zillow). Therefore, that low buy-in can lift gross yields at entry.

On income, Zillow’s rent index shows average asking rent around $1,338, up 1.7% on the year as of late July. Moreover, that steady trend supports occupancy for long holds.

Capex planning matters here. Since many rentals are older stock, budget for roofs and HVAC. Yet, a strong property manager reduces days vacant and protects yield, especially in the top 10 cities for real estate investment.

 

8. Jacksonville, Florida

For investors seeking Sun Belt demand without Miami-level pricing, Jacksonville delivers. The median rent is about $1,313 as of September 2025, down 1% year-over-year (Apartment List). Meanwhile, typical home values sit near $289,000 and usually go pending in 49 days, so entry costs stay reasonable and timelines remain predictable (Zillow).

Better still, local rents run roughly 20% below the national average, a gap that helps absorption and steadies occupancy as new supply comes online (Apartment List). Jobs add support, too.

The metro gained about 9,700 private sector positions over the year in January 2025, a 1.4% lift (Florida Jobs). And costs matter. Average homeowners insurance premiums sit near $2,995 annually in Jacksonville, well below many Florida peers (MoneyGeek.com).

Add it up, and cash flow works. Moreover, entry pricing under $300K with steady rents holds yields. Therefore, focus on logistics and healthcare hubs for stable demand. Also, you can read our complete guide about relocating to Jacksonville.

 

9. Raleigh, North Carolina

Raleigh remains a growth magnet with durable fundamentals. Typical home values average about $438,786, down roughly 2.7% year over year, and homes go pending in around three weeks (Zillow). Meanwhile, the city’s median rent sits near $1,400 as of September 2025, down 2.1% year over year, which helps absorption and keeps concessions in check (Apartment List).

Moreover, statewide rental vacancy registered 6.4% in 2024, up from 5.3% in 2021, signalling that supply has loosened but not flooded the market (FRED).

In addition, population growth is the kicker. The Triangle surged about 10.2% from 2020 to 2024, and the metro now totals roughly 1.661 million residents in 2025 (Axios).

Jobs matter. Raleigh’s mean hourly wage reaches $32.70, higher than the national average (BLS). Prices remain favorable. Our relocation guide highlights why Raleigh secures a spot in the top 10 cities for real estate investment.

Recommended read – The Best Cities for New Graduates Starting Careers in 2025

 

10. Dallas–Fort Worth, Texas

DFW is a scale play. Rents average $1,543 in Q1 2025, occupancy holds at 91%, and concessions linger. Net absorption hit 7,349 units against 7,442 completions. Meanwhile, the pipeline cooled to 31,000 units from a 64,000 peak in 2023, easing supply pressure.

Prices have softened, improving entry points. The typical Dallas home value is about $311,285, down 5.8% year over year, and Fort Worth is near $298,367, down 4.5%, with contracts moving in roughly a month. (Zillow)

Demand drivers remain broad. The metro added about 177,922 residents from July 2023 to July 2024, and it now ranks among the fastest-growing in the country. Meanwhile, the Dallas Fed expects statewide employment to rise roughly 1.5% in 2025, which should keep the tenant base diverse across sectors (CultureMap Dallas).

This is a market where scale, liquidity, and steady in-migration support cash flow today and upside tomorrow, especially as rent growth stabilizes from a shallow dip, making it one of the top 10 cities for real estate investment.

 

Smarter Property Investments and Relocation Support

At Relo.AI, we help you make smarter property investments. We analyze markets, guide financing options, and bring clarity to every decision. We identify opportunities and evaluate returns.

Acquiring property is the first milestone. Relocation then means selecting the right home and establishing stability in a new environment. We also support relocation with legal coordination, housing searches, and logistics.

With Relo.AI, investment and relocation come together. We turn moving into progress, housing into comfort, and planning into confidence.

Book your FREE consultation now.

 

Bottom Line

Chasing returns works best with a plan. Start with cash flow, then double-check price trends and vacancy rates. Next, stress test your deal for repairs and a rate bump. Yet, pick the block, not just the city. The top 10 cities for real estate investment give you a clear runway. Entry prices are sensible. Rents are steady. Job growth is real in many neighborhoods. That combo supports both yield today and upside later.

Put boots on the ground, tour properties day and night, and talk with managers and lenders. Check comps, insurance, and taxes. If numbers hold, move quickly. Buy where math works and demand lasts.

Keep reserves, review quarterly, and reinvest smart wins.