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CapRateCity
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Best Cities for Remote (Out-of-State) Rental Investing (2026)

Remote investing lets you access the best markets regardless of where you live. The ideal remote market has: strong cap rates, affordable prices, landlord-friendly laws, a healthy property management ecosystem (which correlates with market size), and population growth. These cities rank highest on our remote-investor composite.

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5.2%
Avg Cap Rate
$265K
Avg Price
$1,604/mo
Avg Rent
25
Cities

Key Takeaways

These 25 cities represent the top-performing markets based on cap rate. Tuscaloosa, AL leads the ranking with 6.7% cap rate at a $215K median price. Even Oklahoma City, OK at #25 shows 4.7% — still a competitive market.

Across this ranking, the average cap rate is 5.20% (vs 3.81% nationally), average prices are $265K (vs $333K nationally), and average rents are $1,604/mo. Prices in this ranking are 21% below the national average — lower barriers to entry for new investors.

Geographic distribution: the South (23 cities), the Midwest (1 cities), the Northeast (1 cities). The South dominates this ranking — investors in other regions may need to look at out-of-state investing.

1
Tuscaloosa, AL6.7% cap rate
$215K median$1,520/mo rent6.7% cap rate0.8% growth
2
Lafayette, LA6.3% cap rate
$195K median$1,330/mo rent6.3% cap rate0.6% growth
3
Montgomery, AL6.3% cap rate
$205K median$1,380/mo rent6.3% cap rate0.2% growth
4
New Orleans, LA5.6% cap rate
$255K median$1,580/mo rent5.6% cap rate0.4% growth
5
Columbia, SC5.6% cap rate
$250K median$1,540/mo rent5.6% cap rate0.8% growth
6
Lakeland, FL5.4% cap rate
$295K median$1,830/mo rent5.4% cap rate2.1% growth
7
Brownsville, TX5.3% cap rate
$205K median$1,420/mo rent5.3% cap rate0.8% growth
8
Macon, GA5.3% cap rate
$190K median$1,210/mo rent5.3% cap rate0.2% growth
9
South Bend, IN5.3% cap rate
$225K median$1,390/mo rent5.3% cap rate0.3% growth
10
Pittsburgh, PA5.3% cap rate
$220K median$1,450/mo rent5.3% cap rate0.2% growth
11
Port St. Lucie, FL5.2% cap rate
$380K median$2,300/mo rent5.2% cap rate3.5% growth
12
Lubbock, TX5.0% cap rate
$210K median$1,390/mo rent5.0% cap rate1.1% growth
13
Columbus, GA5.0% cap rate
$205K median$1,230/mo rent5.0% cap rate0.4% growth
14
Baton Rouge, LA5.0% cap rate
$240K median$1,350/mo rent5.0% cap rate0.5% growth
15
Birmingham, AL5.0% cap rate
$255K median$1,410/mo rent5.0% cap rate0.3% growth
16
Fayetteville, NC4.9% cap rate
$255K median$1,480/mo rent4.9% cap rate0.8% growth
17
Augusta, GA4.8% cap rate
$245K median$1,440/mo rent4.8% cap rate0.5% growth
18
Norman, OK4.8% cap rate
$240K median$1,360/mo rent4.8% cap rate1% growth
19
Corpus Christi, TX4.8% cap rate
$220K median$1,420/mo rent4.8% cap rate0.8% growth
20
St. Petersburg, FL4.8% cap rate
$355K median$1,980/mo rent4.8% cap rate1.4% growth
21
Fort Lauderdale, FL4.8% cap rate
$470K median$2,650/mo rent4.8% cap rate1.1% growth
22
Tampa, FL4.7% cap rate
$355K median$1,980/mo rent4.7% cap rate1.9% growth
23
Miami, FL4.7% cap rate
$470K median$2,650/mo rent4.7% cap rate1.2% growth
24
El Paso, TX4.7% cap rate
$225K median$1,450/mo rent4.7% cap rate0.6% growth
25
Oklahoma City, OK4.7% cap rate
$240K median$1,360/mo rent4.7% cap rate1% growth
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How to Use This Ranking

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 $265K 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.

Frequently Asked Questions

How is this ranking calculated?
This ranking is based on cap rate calculated from median home prices, rents, property taxes, insurance, maintenance, and vacancy rates for each city. We track 300+ US markets and rank them using publicly available housing data. Cap rate = Net Operating Income / Purchase Price. All calculations assume standard expense ratios and can be customized on each city's page.
Which city ranks #1?
Tuscaloosa, AL tops this ranking with 6.7% cap rate. With a median home price of $215K and rent of $1,520/mo, it offers strong cash flow fundamentals. Visit the Tuscaloosa page for a full analysis with interactive calculators.
Should I invest in the #1 ranked city?
Not necessarily. Rankings show which cities have the strongest metrics, but the best investment depends on your strategy, budget, risk tolerance, and whether you're investing locally or remotely. A city that ranks #1 on cap rate might have slower growth or higher management challenges. Use this ranking as a starting point, then dive into individual city pages to model specific deals.
How often is this data updated?
Our data reflects 2026 estimates based on the latest available median prices, rents, and economic indicators. Market conditions change — use the interactive calculators on each city page to input current asking prices and rents for any property you're evaluating. The rankings are recalculated with each site update.

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