# The Best Markets to Buy Rental Properties Right Now (2026 UPDATE) Source: https://www.youtube.com/watch?v=sUgL5Yk2cmQ Recap page: https://rapidrecap.app/video/sUgL5Yk2cmQ Generated: 2026-01-16T14:46:19.529+00:00 --- ## 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. ![Screenshot at 0:26: The hosts unveil the nine prime real estate markets they recommend for investors, starting with a cash-flowing college town.](https://ss.rapidrecap.app/screens/sUgL5Yk2cmQ/00-00-26.jpg) **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. ## Detailed Analysis Dave Meyer and Ashley break down nine top rental property markets for 2026, starting with Hattiesburg, MS, a cash-flowing college town where low competition for small multifamily properties (4-10 units) makes it attractive. Next, Ocala, FL, is pitched as a hurricane-safe location outside the flood zone, offering better insurance rates and proximity to major Florida metro areas. Knoxville, TN, is highlighted as an affordable 'sleeper' market with strong job growth driven by WVU, healthcare, and manufacturing, leading to low rent burden. Fredericksburg, TX, is suggested for high-revenue Airbnb potential due to its proximity to Austin/San Antonio and growing tourism (wineries). Morgantown, WV, is noted for its solid economy supported by WVU and major employers like Caterpillar, providing good fundamentals despite being an overlooked state. Kansas City, MO, is praised for being a geographic center with strong job/population growth, attracting people moving from high-cost Northeast metros like NYC and Boston. Peoria, IL, is included for its sub-$160K home prices, offering immediate cash flow potential even if value-add work is required. The discussion stresses that location choice is the biggest factor in real estate investing success, and while some markets are 'sexy' (like Kansas City), others like Knoxville or Morgantown offer better fundamentals (low rent burden, strong growth) that lead to better long-term returns. ### Introduction - The Biggest Choice: 11:11 - The biggest choice an investor makes is deciding where to invest, and this episode will reveal nine prime spots for 2026. ### Market 1 - Cash-Flowing College Town (Hattiesburg, MS): 1:45 - Hattiesburg, MS, scores highly due to its student population and high rent-to-price ratio, allowing cash flow even on smaller multifamily deals. ### Market 2 - Hurricane-Safe Florida City (Ocala, FL): 5:22 - Ocala, FL, is favored because it is centrally located (between Tampa and Orlando) and avoids flood zones, leading to better insurance rates. ### Market 3 - Affordable 'Sleeper' Market (Knoxville, TN): 9:09 - Knoxville offers a solid market with low competition, strong job growth from major employers like WVU, and good entry-level pricing. ### Market 4 - High-Revenue Airbnb Market (Fredericksburg, TX): 12:57 - Fredericksburg, TX, is chosen for its high short-term rental revenue potential driven by tourism, wineries, and proximity to Austin/San Antonio. ### Market 5 - Small Multifamilies and Mountain Dew (Knoxville, TN Revisited): 15:25 - This market is excellent for small multifamily investing (under 10 units) due to strong fundamentals, high employer investment, and low rent burden. ### Market 6 - Solid Market in Overlooked State (Morgantown, WV): 17:47 - Morgantown, WV, is highlighted for its solid economy driven by WVU and major employers like Caterpillar, offering recession-proof fundamentals and affordability. ### Market 7 - Affordable City Split In Two (Kansas City, MO): 21:40 - Kansas City, MO, is geographically central, has strong job/population growth, and is attracting people moving from expensive Northeastern cities due to lower prices and good fundamentals (e.g., BBQ and sports). It is cited as having a low rent burden ratio (2.3). Market 8: Homes for $160K!? (Peoria, IL): 24:57 - Peoria, IL, is identified because many homes listed are under $160K, offering potential for cash flow even if value-add work is needed due to lower population growth compared to other metro areas. Market 9: Huge Job Boost Incoming (West Virginia/Morgantown Revisited): 27:57 - West Virginia is highlighted for its high concentration of healthcare/education employers (WVU Medicine, WVU, Caterpillar), providing strong job growth and stability despite being an overlooked state. The low competition and strong fundamentals make it attractive. ![Screenshot at 0:00: Establishing shot of a city skyline across a body of water, featuring low-rise buildings with red roofs and a paddleboat in the distance.](https://ss.rapidrecap.app/screens/sUgL5Yk2cmQ/00-00-00.jpg) ![Screenshot at 0:33: Title card graphic for the show 'REAL ESTATE' with increasing green arrows overlaid on an aerial view of a suburban housing development.](https://ss.rapidrecap.app/screens/sUgL5Yk2cmQ/00-00-33.jpg) ![Screenshot at 1:15: Overlay graphic listing the nine topics covered in the episode, such as 'Cash-Flowing College Town' and 'Hurricane-Safe Florida City!?'](https://ss.rapidrecap.app/screens/sUgL5Yk2cmQ/00-01-15.jpg) ![Screenshot at 2:26: Aerial view of Hattiesburg, MS, showing commercial buildings and streets, with the city name graphic displayed.](https://ss.rapidrecap.app/screens/sUgL5Yk2cmQ/00-02-26.jpg) ![Screenshot at 5:38: Aerial view of Ocala, FL, showing a dense suburban development with multiple houses featuring private swimming pools.](https://ss.rapidrecap.app/screens/sUgL5Yk2cmQ/00-05-38.jpg)