The Best Markets to Buy Rental Properties Right Now (2026 UPDATE)

Quick Overview

The best rental property markets for early 2026 include a cash-flowing college town (Hattiesburg, MS), a hurricane-safe Florida city (Ocala, FL), an affordable sleeper market (Knoxville, TN), a high-revenue Airbnb market (Fredericksburg, TX), a solid market in an overlooked state (West Virginia), an affordable split city (Kansas City, MO), and a market with homes under $160K (Peoria, IL), all selected for strong fundamentals like job growth, population growth, and low rent burden/high rent-to-price ratio.

Key Points: Hattiesburg, MS, is highlighted as a cash-flowing college town due to major employers like the University of Tennessee and WVU, and low competition for small multifamily deals. Ocala, FL, is presented as a hurricane-safe location situated between Tampa and Orlando, offering better insurance rates and being outside the flood zone. Knoxville, TN, is identified as an affordable 'sleeper' market with strong job growth (especially in healthcare/Caterpillar) and low rent burden. Fredericksburg, TX, is recommended for high Airbnb revenue potential due to proximity to Austin and San Antonio, and strong tourism/winery development. Morgantown, WV, is noted as a solid market in an overlooked state, boasting strong job growth (WVU, WVU Health System, Caterpillar) and low rent burden compared to its peers. Kansas City, MO, is listed as an affordable metro area positioned geographically in the center of the country, attracting businesses and people moving from expensive Northeast cities like NYC/Boston. Peoria, IL, is mentioned for having homes listed for around $160K, offering great potential for cash flow even if they require some value-add work.

Context: This video, titled 'The Best Markets to Buy Rental Properties Right Now (2026 UPDATE),' features Dave Meyer, Head of Real Estate Investing at BiggerPockets, presenting his updated list of nine prime real estate markets for rental property investors in the early 2020s. The hosts, Dave Meyer and Ashley, discuss specific cities based on metrics like cash flow potential, affordability, job growth, and low competition, emphasizing that location choice is the single biggest decision for an investor.