If you search for the best places to buy a rental property, you’ll find plenty of articles talking about population growth, new employers, and the next hot housing market. Those things matter. However, if you’re buying a rental several states away, you also need to know whether the rent can cover the mortgage, property management, repairs, and everything else that comes with owning the property.
A growing city can still be an expensive place to buy a rental. And an affordable city can still contain properties that cost far more to operate than you expected.
For 2027, I would start by looking at Cleveland, Indianapolis, Columbus, Pittsburgh, Rochester, and Houston. Each offers a different combination of purchase prices, rental income, and economic conditions. The right choice depends on whether you prioritize monthly cash flow, a growing tenant base, or a balance between the two.
These are places where I would start looking for deals. You still have to find a property that works.
How I Chose These Markets
I compared the published market summaries for 108 regions tracked by DoorHunter, starting with asking prices and the relationship between monthly rent and purchase price. I then reviewed Census population estimates and Bureau of Labor Statistics unemployment data available through FRED.
Here is how the six markets compare:
| Market | Median asking price | Median monthly asking rent | Monthly rent-to-price ratio | Metro population change, 2024–2025 |
|---|---|---|---|---|
| Cleveland, OH | $160,000 | $1,547 | 0.97% | +0.12% |
| Indianapolis, IN | $289,500 | $1,745 | 0.60% | +1.02% |
| Columbus, OH | $360,000 | $2,080 | 0.58% | +0.96% |
| Pittsburgh, PA | $247,500 | $1,695 | 0.68% | −0.13% |
| Rochester, NY | $224,900 | $2,067 | 0.92% | +0.08% |
| Houston, TX | $341,540 | $2,200 | 0.64% | +1.63% |
Price, rent, and ratio figures come from DoorHunter’s published market summary, retrieved October 8, 2026. Population changes are calculated from the linked FRED series. Dollar medians are rounded to the nearest dollar.
There are a few important limitations. DoorHunter’s price and rent medians describe separate groups of listings. A $160,000 median asking price and a $1,547 median asking rent do not establish that you can buy a particular home for $160,000 and rent it for $1,547. Property types, condition, and geographic coverage can differ between those groups. DoorHunter’s search regions also differ from the metropolitan areas used by FRED. DoorHunter methodology.
The underlying source dates and usable price and rent samples were checked on October 8, 2026:
| Market | Source listing date | Price sample | Rent sample |
|---|---|---|---|
| Cleveland, OH | August 30, 2026 | 1,335 | 1,227 |
| Indianapolis, IN | September 5, 2026 | 4,015 | 2,007 |
| Columbus, OH | September 5, 2026 | 2,544 | 1,210 |
| Pittsburgh, PA | September 6, 2026 | 2,826 | 1,156 |
| Rochester, NY | September 11, 2026 | 1,461 | 386 |
| Houston, TX | August 28, 2026 | 9,983 | 6,607 |
These are the latest published figures available for this comparison. Five of the six source dates are more than 30 days old as of October 8; Rochester’s is within 30 days. That makes this a preliminary shortlist for researching 2027 purchases, with fresh property-level evidence needed before buying. An aggregate refresh does not make its source listings newer. FRED’s population observations are July 1 estimates for 2024 and 2025, rather than 2027 forecasts.
1. Cleveland, Ohio: Where I’d Start Looking for Cash Flow
Cleveland stands out because of the relationship between purchase prices and asking rents. Its published monthly rent-to-price ratio is 0.97%, putting it close to the 1% rule at the regional screening level.
That deserves attention. If your local market requires a $500,000 purchase to collect $2,500 in monthly rent, a market with substantially lower asking prices gives you a different starting point.
However, Cleveland’s appeal is primarily the acquisition math. Its metro population increased from approximately 2.163 million in 2024 to 2.166 million in 2025, a gain of about 0.12%. The population remains below its 2020 level. I would be cautious about underwriting a Cleveland property around rapid population growth or automatic appreciation. FRED Cleveland population.
I would focus on properties where the condition, nearby rental evidence, and management costs support the return. A low purchase price becomes much less attractive if the property needs major repairs immediately after closing.
For properties within Cleveland city limits, compliance also belongs in the budget. The city’s rental registration requirements include lead-safe documentation for applicable pre-1978 units and a local agent requirement for owners outside the specified surrounding counties. An out-of-state buyer should resolve those requirements before assuming a property is ready to rent. City of Cleveland rental registration.
Why I’d research it: A relatively low purchase price and strong initial rent-to-price screen.
What could make me pass: Deferred maintenance, unresolved compliance issues, or a management plan that depends on everything going perfectly.
2. Indianapolis, Indiana: A Starting Point for Balancing Price and Growth
Indianapolis offers a different tradeoff. DoorHunter shows a median asking price of $289,500 and median monthly asking rent of $1,745, producing a 0.60% monthly ratio.
That is considerably weaker than Cleveland’s screening ratio. However, the demographic picture is stronger. FRED’s population estimates show an increase from approximately 2.183 million in 2024 to 2.206 million in 2025, or about 1.02%. The metro’s August 2026 unemployment rate was 3.3%, compared with 3.6% a year earlier; those unemployment figures are not seasonally adjusted. FRED population, FRED unemployment.
For an everyday investor, I think Indianapolis deserves attention because it combines a lower entry price than Columbus or Houston with a growing metropolitan population.
You still need to be selective. The published medians do not establish that a typical financed purchase will produce positive cash flow. I would look for properties whose purchase price, verified rent, and operating costs improve on the broad regional screen.
Why I’d research it: A combination of moderate purchase prices, population growth, and relatively low unemployment.
What could make me pass: Paying a premium for a renovated property whose rent leaves little room for management, maintenance, and reserves.
3. Columbus, Ohio: A Growth Market That Requires Discipline on Price
Columbus has a stronger population trend than Cleveland, but you pay more to enter the market.
DoorHunter’s published median asking price is $360,000, with median monthly asking rent of $2,080. That produces a 0.58% monthly rent-to-price ratio.
The metro population increased from approximately 2.221 million in 2024 to 2.242 million in 2025, or about 0.96%. Its August 2026 unemployment rate was 3.3%, down from 4.2% a year earlier, using figures that are not seasonally adjusted. FRED population, FRED unemployment.
Those indicators make Columbus worth researching for a long-term hold. However, population growth does not eliminate the need to negotiate a purchase price that works.
At the published median asking prices, Columbus costs roughly $70,500 more than Indianapolis, while its median asking rent is $335 higher per month. Because those figures describe different listing cohorts, they are only a broad comparison. Still, they show why I would examine the additional cash required and the financing costs carefully.
Why I’d research it: Continued population growth and an improving recent unemployment comparison.
What could make me pass: Accepting a monthly loss because I expect future appreciation to fix the deal.
4. Pittsburgh, Pennsylvania: Worth Researching for Income, With a Population Tradeoff
Pittsburgh falls between the cheaper cash-flow candidates and the more expensive growth markets.
DoorHunter shows a median asking price of $247,500 and median monthly asking rent of $1,695, producing a 0.68% monthly ratio. That is stronger than the published ratios for Indianapolis and Columbus.
The population trend is the limitation. FRED estimates show the metro population declining from approximately 2.425 million in 2024 to 2.422 million in 2025, a decrease of about 0.13%. The series also shows declines in the preceding years. FRED Pittsburgh population.
That does not mean every Pittsburgh neighborhood has weak rental demand. It means I would want convincing evidence for the particular location: nearby rental activity, realistic leasing times, and a property manager who can explain which homes tenants are choosing.
For this market, I would place more weight on the property’s existing income potential and condition than on a broad growth forecast.
Why I’d research it: A comparatively affordable asking price and a stronger rent-to-price screen than several growing metros.
What could make me pass: Weak local leasing evidence or a renovation budget that consumes the apparent price advantage.
5. Rochester, New York: Strong Screening Numbers, With Operating Rules to Understand
Rochester’s published figures are hard to ignore: a $224,900 median asking price, $2,067 median monthly asking rent, and a 0.92% monthly ratio.
However, the population data suggest relative stability rather than rapid growth. The metro increased from approximately 1.055 million residents in 2024 to 1.056 million in 2025, or about 0.08%. Its August 2026 unemployment rate was 4.2%, not seasonally adjusted. FRED population, FRED unemployment.
Rochester also illustrates why a market comparison needs more than prices and rents. The city has adopted Good Cause Eviction legislation. Its current code sets the small-landlord exemption threshold at one housing accommodation unit owned in New York State, so investors should verify their eligibility and the rules that apply to the property. Rochester City Charter, §10-13.
I would research Rochester if I were comfortable learning the operating requirements and working with a local manager who understands them. I would not assume that an attractive ratio makes those requirements unimportant.
Why I’d research it: Strong advertised rent relative to asking price.
What could make me pass: Unverified taxes, repair costs, or assumptions about lease renewals and rent increases that conflict with applicable rules.
6. Houston, Texas: A Growth Candidate Where Expenses Need Close Attention
Houston offers the strongest recent population growth among these six markets.
FRED estimates show the metro growing from approximately 7.778 million residents in 2024 to 7.905 million in 2025, an increase of about 1.63%. However, its August 2026 unemployment rate was 5.0%, compared with 4.9% a year earlier, using figures that are not seasonally adjusted. The demographic and labor indicators deserve to be considered together. FRED population, FRED unemployment.
DoorHunter’s August 28 snapshot shows a $341,540 median asking price and $2,200 median monthly asking rent, producing a 0.64% monthly ratio. That snapshot needs updating before relying on it for current pricing. DoorHunter Houston market.
For an individual Houston property, I would want tax estimates and insurance quotes early in the process. I would also check the address against flood information and investigate the property’s flood history. FEMA’s Map Service Center provides address-based flood hazard research. FEMA flood mapping resources.
Why I’d research it: Strong population growth and a better initial rent-to-price screen than several expensive growth markets.
What could make me pass: Insurance, taxes, flood exposure, or competing rentals that make the projected income unrealistic.
Even the 1% Rule Can Leave You With Modest Cash Flow
A strong rent-to-price ratio helps narrow the search. It does not tell you how much money you will keep.
Consider an illustrative property purchased for $150,000 and rented for $1,600 per month. It passes the 1% rule, with a monthly ratio of about 1.07%.
Assume 25% down and a 30-year mortgage at 7.5%. The monthly principal and interest payment is approximately $786.62. The financing rate is an example assumption, rather than a lender quote.
Now include the expenses:
| Monthly income or expense | Amount |
|---|---|
| Scheduled rent | $1,600.00 |
| Vacancy allowance, 5% | −$80.00 |
| Property taxes | −$180.00 |
| Insurance | −$100.00 |
| Management, 8% of collected rent | −$121.60 |
| Maintenance, 5% of collected rent | −$76.00 |
| Capital reserves, 5% of collected rent | −$76.00 |
| Mortgage principal and interest | −$786.62 |
| Estimated monthly cash flow | $179.78 |
This example assumes no HOA dues or owner-paid utilities. It also excludes leasing fees, acquisition costs, initial repairs, and income taxes. All expense amounts are illustrative.
The property passes a useful screening rule, but the projected monthly cash flow is still modest. Higher taxes, a more expensive insurance policy, or a larger repair budget would reduce it further.
That is why I would use the 1% rule to decide which properties deserve more attention, then replace every assumption with evidence for the actual home.
How I’d Narrow the List
For a first out-of-state purchase, Indianapolis would be one of my starting points because of its combination of entry price and population growth. If current income were the priority, I would spend more time researching Cleveland, while being particularly careful about condition and compliance.
Columbus and Houston would interest me for their population trends, provided I could find a property with acceptable cash flow under current financing. Pittsburgh and Rochester would deserve a closer look when the property-level income and local operating evidence were convincing.
From there, I would narrow the search to two markets, speak with property managers, and compare actual properties with similar bedrooms, size, condition, and location. I would ask managers about leasing time, turnover expenses, maintenance pricing, and the areas they are willing to manage.
The goal for 2027 is to find a property that can support its expenses today, with enough room for the things you cannot predict perfectly. A market shortlist helps you decide where to spend your time. The purchase decision still comes down to the property.