The BRRRR strategy works best in markets where you can buy below market, rehab to force appreciation, and refinance at a value that returns most of your capital. That means low median prices (room for value-add), decent rents (cash flow after refi), and moderate appreciation. These cities score highest on our BRRRR composite.
These 25 cities represent the top-performing markets based on cap rate. Roanoke Rapids, NC leads the ranking with 9.7% cap rate at a $100K median price. Even Duncan, OK at #25 shows 6.9% — still a competitive market.
Across this ranking, the average cap rate is 6.66% (vs 3.81% nationally), average prices are $168K (vs $333K nationally), and average rents are $1,206/mo. Prices in this ranking are 50% below the national average — lower barriers to entry for new investors.
Geographic distribution: the South (24 cities), the Midwest (1 cities). The South dominates this ranking — investors in other regions may need to look at out-of-state investing.
These 25 markets represent the strongest cash flow opportunities in our database of 775+ cities. High cap rate markets typically feature lower home prices (avg $168K here vs $333K nationally), which means lower barriers to entry — but they often come with slower appreciation and may require more active management. The sweet spot is cities that combine strong cap rates with positive population growth, suggesting sustained tenant demand.
Next steps: Click any city above to see its full analysis page with interactive cap rate and cash-on-cash calculators pre-filled with local data. Compare your top picks head-to-head using our city comparison tool, or explore the interactive cap rate map to visualize these markets geographically.
For a comprehensive market selection framework, read our guide on how to analyze a rental property in 15 minutes or what makes a good cap rate.