High vacancy erodes returns faster than almost any other factor. These cities have the highest vacancy rates in our database — not always deal-breakers, but red flags that demand extra due diligence and conservative underwriting.
These 25 cities represent the lowest markets based on vacancy. Youngstown, OH leads the ranking with 8.5% vacancy at a $165K median price. Even Oxford, MS at #25 shows 7.4% — a solid metric.
Across this ranking, the average cap rate is 5.53% (vs 3.81% nationally), average prices are $189K (vs $333K nationally), and average rents are $1,196/mo. Prices in this ranking are 43% below the national average — lower barriers to entry for new investors.
Geographic distribution: the South (19 cities), the Midwest (5 cities), the Northeast (1 cities). The South dominates this ranking — investors in other regions may need to look at out-of-state investing.
These 25 cities rank highest on vacancy across our dataset of 775+ markets. Use this ranking as a screening tool — identify 3-5 markets that match your investment criteria, then dig deeper into each city's page for interactive calculators, detailed analysis, and deal criteria specific to that market.
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.