The Best Cities to Buy Rental Properties in 2020

According to a report by Turbo Tenant, a property management portal, there are 31 cities in 20 states, where it is best to invest in rental properties. New York and Ohio tied for the most cities making the list, at three each.

“When identifying the top 31 cities, we looked for a positive ROI and high growth numbers across all data points,” says Sarnen Steinbarth, founder and CEO of TurboTenant. Researchers also factored in employment and population growth, increase in home values, and rental yield when identifying the top places for rental investments. 

The Top Ten Cities to Buy Rental Property

Reading, Pa.

  • Increase in home values: 11.1%
  • Median sales price: $140,000
  • Average rent (for a two-bedroom): $957

District Heights, Md.

  • Increase in home values: 0.4%
  • Median sales price: $252,000
  • Average rent: $1,408

Allentown, Pa.

  • Increase in home values: 19%
  • Median sales price: $145,000
  • Average rent: $1,063

East Orange, N.J.

  • Increase in home values: 10%
  • Median sales price: $273,000
  • Average rent: $1,534

Nashua, N.H.

  • Increase in home values: 4.5%
  • Median sales price: $283,000
  • Average rent: $1,524

Cincinnati

  • Increase in home values: 3.1%
  • Median sales price: $163,000
  • Average rent: $1,048

Paterson, N.J.

  • Increase in home values: 11.9%
  • Median sales price: $268,000
  • Average rent: $1,614

New Castle, Del.

  • Increase in home values: 8%
  • Median sales price: $188,000
  • Average rent: $1,884

Rochester, N.Y.

  • Increase in home values: 5.6%
  • Median sales price: $136,000
  • Average rent: $1,126

Hyattsville, Md.

  • Increase in home values: 0.4%
  • Median sales price: $279,000
  • Average rent: $1,982