Let’s be real for a second real estate investing isn’t easy.
You’re dealing with rising interest rates, tighter budgets, and more competition than ever. And with so many cities getting pricier and harder to break into, it’s no wonder investors are asking:
“Where should I invest next?”
That’s the problem.
You want your money to grow. You want steady returns. You want to buy in a city where people are moving in not moving out. You want the kind of place where rents are strong, demand is solid, and your property doesn’t just sit on the market collecting dust.
But you can’t afford to guess. One wrong move, and your “investment” turns into a money pit.
So, how do you pick the right spot?
📊 Metrics Used to Determine the Best Places to Buy Rental Property
When picking the best places to invest, it’s not about chasing hype it’s about the numbers. Here are the key metrics we used to evaluate each city on this list:
1. Population Growth More people moving in means more demand for housing. We looked for cities with steady or rising population numbers because a growing city usually means a growing rental market.
2. Job Market Strength A strong job market attracts tenants and boosts long-term property value. We focused on cities with growing industries, low unemployment, and major employers setting up shop.
3. Gross Rental Yield This is the annual rental income as a percentage of the property price. Higher yields mean better cash flow. We prioritized cities with rental yields that offer investors a real return, not just future promises.
4. Vacancy Rates The lower the vacancy rate, the better. A low vacancy means rentals fill quickly, tenants stay longer, and you’re not losing money between leases.
5. Housing Price Index (5-Year Growth) This shows how home values have changed over the past five years. It’s a great way to spot appreciation trends. Cities with consistent price growth usually signal long-term investment potential.
6. Median Home Price Affordability matters. Lower entry costs mean lower risk and better access for new investors. We picked cities where buying a home won’t break the bank but still offers a chance for solid returns.
Top Places to Invest in Real Estate – 2025 Rankings
|
Ranking |
Place |
|---|---|
| 1 | Athens, GA |
| 2 | Savannah, GA |
| 3 | Waco, TX |
| 4 | Jacksonville, FL |
| 5 | Lakeland, FL |
| 6 | Oshkosh, WI |
| 7 |
El Paso, TX |
Here is the table listing the top places to invest in real estate in 2025, complete with rankings.
It’s Not About the Big Cities Anymore
Look, New York and San Francisco had their time. Today, real estate gold is hiding in smaller cities places where job growth, population growth, and housing demand are all heading in the right direction.
These are places with strong rental markets, good property values, and solid local economies. And the best part? You don’t need to be a millionaire to get in.
Here are the 15 best places to be a real estate investor in 2025. Some you might know. Others might surprise you. But each one has serious potential.
1. Athens, Georgia
College towns are rental gold, and Athens is no different. With the University of Georgia at its core, this city has a built-in base of renters year-round. The cost of living is low, the vibe is lively, and the demand for student and young professional housing stays strong.
Add in solid job growth and a growing population, and Athens becomes a no-brainer for buy-and-hold investors.
- Population: 127,000
- Gross Rental Yield: Approximately 6.5%
- Vacancy Rate: Around 5%
- Housing Price Index 5-Year Growth: +18%
- Median Home Sold Price: $352,389 (March 2025)
2. Savannah, Georgia
Savannah is charming but more importantly, it’s booming.
This coastal city is seeing a huge rise in tourism, remote workers, and logistics jobs thanks to its port. Rent prices are rising, but homes are still affordable compared to other cities. That combo is exactly what investors are after.
Short-term rentals? Long-term tenants? Savannah offers both.
- Population: 147,000
- Gross Rental Yield: Approximately 6.2%
- Vacancy Rate: Around 6%
- Housing Price Index 5-Year Growth: +22%
- Median Home Sold Price: $370,237 (March 2025)
3. Waco, Texas
You might know Waco from a certain famous home renovation show, but this small Texas city is more than TV hype.
It’s become a hotspot for first-time buyers and renters fleeing high-priced metros. The local economy is growing, Baylor University keeps the rental market busy, and you can still pick up properties at reasonable prices.
- Population: 138,000
- Gross Rental Yield: Approximately 7%
- Vacancy Rate: Around 5.5%
- Housing Price Index 5-Year Growth: +20%
- Median Home Sold Price: $250,000
4. Jacksonville, Florida
Jacksonville has been quietly turning into one of Florida’s best real estate markets.
It’s got beaches, business, and a booming population. Employers are moving in, and so are remote workers. The rental market is hot, and home values are still within reach for investors who move fast.
- Population: 950,000
- Gross Rental Yield: Approximately 6%
- Vacancy Rate: Around 6%
- Housing Price Index 5-Year Growth: +25%
- Median Home Sold Price: $300,000
5. Lakeland, Florida
Smack in the middle between Tampa and Orlando, Lakeland is one of Florida’s hidden gems.
It’s a commuter city with a growing job market, thanks to the warehousing and logistics industries. Renters love the location, and investors love the low home prices and high rental returns.
If you’re looking for strong cash flow, Lakeland should be on your radar.
- Population: 115,000
- Gross Rental Yield: Approximately 6.8%
- Vacancy Rate: Around 5%
- Housing Price Index 5-Year Growth: +23%
- Median Home Sold Price: $270,000
6. Oshkosh, Wisconsin
Yep, Oshkosh. Don’t let the name fool you—this Midwest city is packed with opportunity.
It’s affordable. It’s growing. And it’s got a steady stream of tenants, from college students to workers in local manufacturing and health care.
You won’t see flashy appreciation here, but the rental returns are steady and reliable.
- Population: 66,000
- Gross Rental Yield: Approximately 7.2%
- Vacancy Rate: Around 4.5%
- Housing Price Index 5-Year Growth: +15%
- Median Home Sold Price: $200,000
7. El Paso, Texas
El Paso flies under the radar, but that’s good news for savvy investors.
It’s one of the most affordable cities in Texas, and it has a stable rental market. Military families, students, and cross-border workers all help keep demand up. Vacancy rates are low, and rents keep inching higher.
Plus, property taxes are lower than in other parts of Texas.
- Population: 680,000
- Gross Rental Yield: Approximately 6.5%
- Vacancy Rate: Around 5%
- Housing Price Index 5-Year Growth: +18%
- Median Home Sold Price: $220,000
8. Tallahassee, Florida
Florida’s capital is more than just politics and college football.
Tallahassee is home to two major universities and a healthy government job sector, which helps create consistent demand for rental housing. It’s affordable, easy to manage, and gives you a steady stream of tenants.
Perfect for long-term investors who like reliable cash flow.
- Population: 197,000
- Gross Rental Yield: Approximately 6.3%
- Vacancy Rate: Around 5.5%
- Housing Price Index 5-Year Growth: +20%
- Median Home Sold Price: $260,000
9. Durham, North Carolina
Durham is part of the famous Research Triangle—and that’s great news for investors.
It’s got tech jobs, biotech startups, and tons of young professionals looking to rent. The city is growing fast, and rents are rising right along with it.
Durham is one of those rare markets where you get appreciation and cash flow.
- Population: 285,000
- Gross Rental Yield: Approximately 5.8%
- Vacancy Rate: Around 4.5%
- Housing Price Index 5-Year Growth: +30%
- Median Home Sold Price: $350,000
10. Orlando, Florida
Orlando isn’t just theme parks and tourism—it’s a real estate powerhouse.
The job market is strong, the population is climbing, and the city is attracting everyone from retirees to remote workers to families. That means demand for rentals stays high, especially in the suburbs.
Plus, short-term rentals can be a big win here if you play by the local rules.
- Population: 310,000
- Gross Rental Yield: Approximately 5.5%
- Vacancy Rate: Around 6%
- Housing Price Index 5-Year Growth: +28%
Now, Let’s Add 5 More Hot Markets for 2025:
11. Fayetteville, Arkansas
This one is a sleeper hit. Fayetteville and the whole Northwest Arkansas area are seeing serious growth.
Why? Big employers like Walmart and Tyson Foods are based nearby, and the cost of living is still low. There’s a strong rental market, and home prices are affordable.
It’s one of the best small-city plays in the U.S. right now.
- Population: Approximately 98,000
- Gross Rental Yield: Approximately 6.5%
- Vacancy Rate: Around 5%
- Housing Price Index 5-Year Growth: +20%
- Median Home Sold Price: $381,166 (March 2025)
12. Boise, Idaho
Yes, prices in Boise shot up during the pandemic. But now the market is cooling just enough for smart investors to jump in.
People are still moving to Boise for its quality of life and job opportunities. If you’re looking for long-term growth, Boise is worth a second look.
- Population: Approximately 235,000
- Gross Rental Yield: Approximately 5.5%
- Vacancy Rate: Around 4.5%
- Housing Price Index 5-Year Growth: +30%
- Median Home Sold Price: $495,000 (February 2025)
13. Chattanooga, Tennessee
Chattanooga is growing and not just in population.
It’s becoming a magnet for remote workers and entrepreneurs, thanks to its affordable housing and fast internet (seriously, it’s one of the fastest in the country). The city is also investing in its downtown and public spaces.
Strong demand, low prices, and high returns? Check.
- Population: Approximately 182,000
- Gross Rental Yield: Approximately 7%
- Vacancy Rate: Around 5%
- Housing Price Index 5-Year Growth: +22%
- Median Home Sold Price: $275,000
14. Huntsville, Alabama
Huntsville is home to aerospace, engineering, and tech jobs. It’s a city on the rise, but still affordable compared to other job hubs.
Rent demand is high, and many professionals are looking for mid-to-high-end rentals. It’s a smart play if you want a strong tenant base and growing equity over time.
- Population: Approximately 215,000
- Gross Rental Yield: Approximately 6.8%
- Vacancy Rate: Around 4.5%
- Housing Price Index 5-Year Growth: +25%
- Median Home Sold Price: $320,000
15. Des Moines, Iowa
Last but not least Des Moines.
It’s got jobs. It’s got population growth. And it’s got one of the most stable housing markets in the Midwest. Investors love it for steady returns, low vacancy rates, and affordability.
Des Moines may not be flashy, but it gets the job done.
- Population: Approximately 215,000
- Gross Rental Yield: Approximately 7%
- Vacancy Rate: Around 5%
- Housing Price Index 5-Year Growth: +18%
- Median Home Sold Price: $250,000
Final Thoughts
You don’t need to chase hype.
The smartest real estate investors in 2025 are looking beyond the usual hot spots. They’re finding value in cities with real growth, real demand, and real opportunities.
Whether you’re after cash flow, appreciation, or a mix of both, these 15 cities give you a strong shot at building wealth through real estate—without betting it all on the next boom-and-bust cycle. Or contact Us
So, where will you invest next?
🧠 Best Places to Invest in Real Estate – FAQs
1. How do I know if a city is a good place to invest in real estate?
A good investment city usually shows signs of population growth, job creation, affordable housing prices, low vacancy rates, and landlord-friendly laws. These factors indicate strong demand for rentals and long-term property value, which means a better chance of solid returns.
2. Should I invest in short-term or long-term rentals?
It depends on your goals short-term rentals (like Airbnb) can bring higher returns quickly in tourist-heavy areas like Orlando or Savannah but require more hands-on management and come with more regulations. Long-term rentals provide steady income and less turnover, making them ideal for college towns or job growth cities like Durham or El Paso.
3. Are small cities really better than big cities for real estate investing?
Often, yes—smaller cities tend to offer more affordable homes, higher rental yields, less competition, and fewer regulations, which all help with cash flow and lower upfront costs. Places like Lakeland, Fayetteville, and Oshkosh are perfect examples of smaller markets that offer strong investment potential without big-city headaches.
4. How much money do I need to start investing in these places?
In most of the cities listed, you can get started with a down payment of $20,000–$40,000 depending on the loan type and home price, plus some extra cash for closing costs, reserves, and minor repairs. Cities like Huntsville or Des Moines offer lower entry costs compared to expensive metros.
5. What’s the best strategy for beginners?
If you’re new to real estate investing, start with a simple buy-and-hold rental strategy in a good neighborhood with strong demand, low crime, and decent schools. Run your numbers carefully to make sure rent covers the mortgage and other costs, and work with a knowledgeable local agent to avoid costly mistakes.
6. How do I manage a property in another city or state?
You don’t have to do everything yourself most remote investors hire a local property manager to handle tenants and maintenance, work with local real estate agents to find good deals, and use contractors for any needed repairs. It’s an added expense, but it saves you stress and helps keep your investment running smoothly.
7. Is 2025 a good year to invest in real estate?
Yes—if you’re smart about it. While interest rates remain higher than before, housing prices in many cities are adjusting, creating opportunities to buy in markets with solid fundamentals and strong demand. If you focus on the right areas and make data-driven decisions, 2025 can be a strong year to grow your portfolio.