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Best College Towns for Rental Property Investing (2026)

College towns offer a unique advantage: a self-renewing pool of tenants every year. Universities anchor local economies, create stable employment, and generate consistent rental demand near campus. These markets combine university presence with strong investment metrics.

1
Macon, GA5.3% cap rate
$155K median$980/mo rent5.3% cap rate0.2% growth
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2
Tuscaloosa, AL5.2% cap rate
$195K median$1,120/mo rent5.2% cap rate0.8% growth
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3
Columbia, SC5.0% cap rate
$205K median$1,150/mo rent5.0% cap rate0.8% growth
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4
Kalamazoo, MI4.5% cap rate
$175K median$1,050/mo rent4.5% cap rate0.3% growth
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5
Bowling Green, KY4.5% cap rate
$220K median$1,180/mo rent4.5% cap rate1.2% growth
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6
Johnson City, TN4.5% cap rate
$235K median$1,200/mo rent4.5% cap rate1% growth
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7
Tallahassee, FL4.5% cap rate
$245K median$1,320/mo rent4.5% cap rate0.9% growth
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8
Norman, OK4.4% cap rate
$225K median$1,200/mo rent4.4% cap rate1% growth
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9
Lubbock, TX4.4% cap rate
$185K median$1,120/mo rent4.4% cap rate1.1% growth
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10
Lancaster, PA4.3% cap rate
$225K median$1,280/mo rent4.3% cap rate0.4% growth
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11
Knoxville, TN4.3% cap rate
$280K median$1,380/mo rent4.3% cap rate1.2% growth
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12
Gainesville, FL4.3% cap rate
$265K median$1,380/mo rent4.3% cap rate1.3% growth
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13
Bloomington, IN4.2% cap rate
$235K median$1,200/mo rent4.2% cap rate0.8% growth
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14
Lexington, KY4.1% cap rate
$260K median$1,300/mo rent4.1% cap rate0.9% growth
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15
Fayetteville, AR4.1% cap rate
$275K median$1,320/mo rent4.1% cap rate2.2% growth
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16
Champaign, IL4.0% cap rate
$175K median$1,050/mo rent4.0% cap rate0.5% growth
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17
Columbia, MO3.9% cap rate
$225K median$1,180/mo rent3.9% cap rate0.8% growth
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18
Athens, GA3.8% cap rate
$265K median$1,280/mo rent3.8% cap rate1.2% growth
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19
Lincoln, NE3.6% cap rate
$225K median$1,180/mo rent3.6% cap rate0.9% growth
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20
Lawrence, KS3.4% cap rate
$255K median$1,250/mo rent3.4% cap rate0.8% growth
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21
Manhattan, KS3.4% cap rate
$235K median$1,150/mo rent3.4% cap rate0.6% growth
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22
Durham, NC3.4% cap rate
$345K median$1,520/mo rent3.4% cap rate1.8% growth
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23
Iowa City, IA3.3% cap rate
$245K median$1,200/mo rent3.3% cap rate0.6% growth
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24
Ames, IA3.3% cap rate
$235K median$1,150/mo rent3.3% cap rate0.8% growth
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25
Ann Arbor, MI2.6% cap rate
$395K median$1,680/mo rent2.6% cap rate0.8% growth
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