High-priced markets require more capital, tighter margins, and creative deal structures. But they also offer stronger tenant quality, better appreciation, and often more stable economies. These are the priciest markets in our database.
These 25 cities represent the most affordable markets based on price. San Jose, CA leads the ranking with $1.6M price at a $1.6M median price. Even Santa Rosa, CA at #25 shows $780K — a solid metric.
Across this ranking, the average cap rate is 2.10% (vs 3.81% nationally), average prices are $1.0M (vs $333K nationally), and average rents are $3,078/mo.
Geographic distribution: the West (24 cities), the South (1 cities). The West dominates this ranking — investors in other regions may need to look at out-of-state investing.
Affordability is the entry point for most new investors. These 25 cities have median prices well below the national average of $333K, making them accessible with smaller down payments and less capital at risk. Lower-priced markets often (but not always) have stronger cap rates because rents don't drop as fast as prices. The key risk: cheap markets may be cheap for a reason — check population growth and vacancy rates before committing.
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 how much money you need to start.