A typical U.S. home is worth about $366,000, but in Toledo you can still buy one for about $202,000 — the lowest price on my list of the best cities to buy rental properties for investment in 2027. And while national home values grew only about 1% over the past year, Zillow expects Syracuse values to rise about 5.2% over the next 12 months, close to five times the U.S. forecast. That’s the kind of gap I looked for when I ranked these 15 markets.
Here’s the honest picture. The days of buying any house anywhere and watching it double are over. Across the country, home values grew only about 1% over the past year, and the forecast for the next 12 months is about the same. So in 2027, the city you pick matters more than ever.
To build this list, I looked at three simple things in each large metro area: the typical home value, the typical monthly rent, and the home value forecast through September 2027. All three come from Zillow’s public research data, using September 2026 figures. I also checked the latest listing numbers to see how fast homes are selling.
One quick note on “yield.” When I say a city has a rough yield of 7%, I mean a year of typical rent equals about 7% of the typical home value. That’s before taxes, insurance, repairs and vacancy. Your real return will be lower, but this number is a great way to compare cities side by side.
15 Best Cities to Buy Rental Properties for Investment in 2027: Prices, Rents and Forecasts
| City (Metro Area) | Typical Home Value | Typical Monthly Rent | 12-Month Value Forecast |
|---|---|---|---|
| 1. Cleveland, OH | $250,000 | $1,440 | +3.7% |
| 2. Syracuse, NY | $269,000 | $1,627 | +5.2% |
| 3. Toledo, OH | $202,000 | $1,264 | +3.2% |
| 4. Rochester, NY | $281,000 | $1,532 | +4.2% |
| 5. Chicago, IL | $356,000 | $2,163 | +2.7% |
| 6. Akron, OH | $240,000 | $1,306 | +3.6% |
| 7. Wichita, KS | $222,000 | $1,206 | +3.9% |
| 8. Pittsburgh, PA | $228,000 | $1,467 | +1.2% |
| 9. Detroit, MI | $264,000 | $1,514 | +1.8% |
| 10. St. Louis, MO | $273,000 | $1,427 | +2.6% |
| 11. Cincinnati, OH | $306,000 | $1,522 | +3.0% |
| 12. Kansas City, MO | $325,000 | $1,534 | +2.9% |
| 13. Tulsa, OK | $252,000 | $1,375 | +2.1% |
| 14. Indianapolis, IN | $292,000 | $1,528 | +1.9% |
| 15. Birmingham, AL | $261,000 | $1,404 | +1.3% |
Source: Zillow (September 2026 values and rents; forecast through September 2027)
For comparison, the typical U.S. home is worth about $366,000 and rents for about $1,932 a month. Every city on this list is cheaper to buy into than that.
1. Cleveland, Ohio
Cleveland tops my list because it checks every box. The typical home in the metro is worth about $250,000, and the typical rent is about $1,440 a month. That’s a rough yield of 6.9%.
Rents rose 4.5% over the past year, and Zillow expects home values to climb another 3.7% by September 2027. Big employers like the Cleveland Clinic keep a steady flow of workers who need places to live.
- Why it works: Low prices, rising rents and an above-average price forecast.
2. Syracuse, New York
Syracuse has the strongest price forecast on this list. Zillow expects home values to rise about 5.2% over the next 12 months, which is close to five times the national forecast.
The typical home costs about $269,000 and rents for about $1,627, a rough yield of 7.3%. Values already jumped 6.6% over the past year. Syracuse University and the huge Micron chip plant now being built nearby in Clay help explain the buzz.
- Why it works: Strong rent plus the best growth outlook here.
3. Toledo, Ohio
If you have a small budget, look at Toledo. The typical home is worth just $202,000, the lowest on this list, and rents for about $1,264. That works out to a rough yield of 7.5%.
Rents in Toledo grew 5.8% over the past year, the fastest rent growth of any city here. Zillow expects values to rise about 3.2% more by next fall.
- Why it works: Cheapest entry price with the fastest rising rents.
4. Rochester, New York
Rochester is a quiet winner. Homes here are selling fast. According to Realtor.com’s October 2026 data, the typical listing in Rochester spent just 31 days on the market, the quickest of any city on this list.
The typical home value is about $281,000, with rent near $1,532. Zillow expects values to rise 4.2% by September 2027. Fast sales tell me buyers want in, which helps protect your price.
- Why it works: Fast-selling homes and a strong forecast.
5. Chicago, Illinois
Many investors skip Chicago, and I think that’s a mistake. The typical metro home is worth about $356,000, yet the typical rent is about $2,163. That’s a rough yield of 7.3%, which is rare for a big city.
Rents rose 4.7% over the past year, and home values rose 5.0%. Zillow expects another 2.7% gain. Chicago also gives you a huge pool of renters to choose from.
- Why it works: Big-city demand with small-city price-to-rent math.
6. Akron, Ohio
Akron sits just south of Cleveland and offers a similar deal at a lower price. The typical home is worth about $240,000 and rents for about $1,306, a rough yield of 6.5%.
Home values rose 4.0% over the past year, and Zillow expects about 3.6% more. The typical listing spent just 39 days on the market in October.
- Why it works: Affordable homes with steady growth on both prices and rents.
7. Wichita, Kansas
Wichita is known for its aircraft industry, and that steady job base supports renters. The typical home costs about $222,000 and rents for about $1,206.
Rents climbed 4.4% over the past year. Zillow expects home values to rise about 3.9%, one of the best forecasts on this list. Wichita also had 3.8% fewer homes for sale in October than a year earlier, while most cities here saw more.
- Why it works: Low prices, shrinking supply and a strong forecast.
8. Pittsburgh, Pennsylvania
Pittsburgh has the highest rough yield on my list at 7.7%. The typical home is worth about $228,000, while rents run about $1,467 a month.
Prices have been flat, up just 0.2% over the past year, and Zillow expects only about 1.2% growth. So this is a cash-flow city, not a fast-appreciation city. Hospitals and universities keep renter demand steady.
- Why it works: Best monthly income compared to price.
9. Detroit, Michigan
Detroit offers a rough yield of 6.9%. The typical metro home is worth about $264,000, and rent averages about $1,514.
Rents rose 4.2% over the past year, faster than the national pace of 2.7%. Zillow expects home values to rise about 1.8%. Pick neighborhoods carefully here, because quality can change a lot from one block to the next.
- Why it works: Solid rent growth at a fair price.
10. St. Louis, Missouri
In St. Louis, the typical home is worth about $273,000 and rents for about $1,427. Rents rose 4.1% over the past year, and Zillow expects values to rise about 2.6% by next fall.
More homes are for sale than a year ago, up about 21% in October. That gives buyers more room to negotiate on price.
- Why it works: Rising rents plus more choice and bargaining power for buyers.
11. Cincinnati, Ohio
Cincinnati is a steady, balanced market. The typical home is worth about $306,000, with rent near $1,522. Its rough yield of 6.0% is a little lower than others here, but the outlook is strong.
Zillow expects values to rise about 3.0%, nearly three times the U.S. forecast. That growth can add real wealth over a five-year hold.
- Why it works: Good balance of income and long-term growth.
12. Kansas City, Missouri
Kansas City is a great pick for investors who want growth more than top-dollar rent. The typical home is worth about $325,000 and rents for about $1,534.
Values rose 3.7% over the past year, and Zillow expects about 2.9% more. Rents also grew 3.8%. Supply is fairly steady, with listings up just 3.1% from a year ago.
- Why it works: Steady growth on both prices and rents.
13. Tulsa, Oklahoma
Tulsa gives you a rough yield of 6.6%. The typical home costs about $252,000 and rents for about $1,375.
Values rose 3.1% over the past year, and Zillow expects about 2.1% growth ahead. Homes take a bit longer to sell here, with the typical listing on the market about 64 days in October, so buyers often have time to negotiate.
- Why it works: Affordable prices with room to bargain.
14. Indianapolis, Indiana
Indianapolis is a longtime investor favorite. The typical home is worth about $292,000, and rent is about $1,528, a rough yield of 6.3%.
Prices barely moved over the past year, up just 1.0%, and Zillow expects about 1.9% growth. Nearly a third of listings had a price cut in October. For buyers, that means real deals are out there.
- Why it works: Lots of price cuts and steady rent growth.
15. Birmingham, Alabama
Birmingham rounds out my list as the top Southern pick. The typical home is worth about $261,000 and rents for about $1,404, a rough yield of 6.5%.
Rents rose 2.9% over the past year, and Zillow expects values to rise about 1.3%. Many Sun Belt cities are expecting price drops, so a positive forecast here stands out.
- Why it works: Southern location with positive price and rent trends.
My Rental Property Investing Rules for 2027
Picking the right city is only half the job. Here’s the checklist I use before buying any rental:
- Know your goal. If you want monthly income now, look at Pittsburgh, Toledo or Chicago. If you want more growth over time, look at Syracuse, Rochester or Wichita.
- Run the real numbers. A rough 7% yield shrinks fast once you add taxes, insurance, repairs and a month or two of vacancy. Plan for all of it.
- Check the neighborhood, not just the city. City numbers are averages. One street can rent much better than the next.
- Use extra listings to your advantage. In cities where supply is rising, ask for price cuts or seller help with closing costs.
- Plan for a long hold. With slow national price growth, give your property at least five years to work for you.
My take? You don’t need a hot market to build wealth in 2027. You need a fair price, a steady renter and a city where values are still moving up, even slowly. The 15 cities above give you a strong place to start your research.
Run Your Own Numbers
Every deal is different. Before you buy, add up the full monthly cost of the home, including the mortgage payment, taxes, insurance and repairs. Then compare that total to the typical rent in the city you’re eyeing.
