Best U.S. cities for
rental cash flow in 2026.

We modeled a typical home in 339 U.S. cities with at least 100,000 residents, using September 2026 home values and rents from Zillow, this week's mortgage rate from Freddie Mac and the same assumptions for every city.

Key finding: with 25% down at this week's 7.18% average mortgage rate and a full expense budget, a typical home produces positive monthly cash flow in only 5 of the 339 large cities we analyzed. In most markets, cash flow today depends on buying below the typical price, a larger down payment or above-average rent.

Data updated November 5, 2026 · Home values and rents: Zillow, September 2026 · Mortgage rate: Freddie Mac, week of November 5, 2026 · Download the full data (CSV)

Top cityDetroitMichigan · 14.04% modeled cap rate

Cities analyzed339population 100,000+

Positive modeled cash flow5 of 339typical home at typical rent

Down payment25%same for every city

Interest rate7.18%Freddie Mac 30-year average, November 5, 2026

Top 50 large cities by modeled cap rate.

Cap rate uses net operating income after vacancy, taxes, insurance, maintenance and management, before the mortgage. Cash flow also subtracts the mortgage and capital reserves.

#	City	Typical home value	Typical rent	Rent change, 1 yr	Gross yield	Modeled cap rate	Modeled monthly cash flow	Analyze
1	Detroit, Michigan	$74,742	$1,328	+5.4%	21.32%	14.04%	$428	Model it
2	Jackson, Mississippi	$83,517	$1,228	+3.5%	17.64%	10.29%	$231	Model it
3	Cleveland, Ohio	$115,810	$1,359	+4.6%	14.08%	8.67%	$181	Model it
4	Birmingham, Alabama	$134,165	$1,305	+3.0%	11.67%	7.21%	$60	Model it
5	Baltimore, Maryland	$184,804	$1,762	+3.6%	11.44%	6.90%	$35	Model it
6	Montgomery, Alabama	$149,943	$1,305	+2.3%	10.44%	6.62%	-$0	Model it
7	Dayton, Ohio	$137,939	$1,241	+3.1%	10.80%	6.22%	-$48	Model it
8	Philadelphia, Pennsylvania	$231,584	$1,757	+3.4%	9.10%	6.02%	-$102	Model it
9	Toledo, Ohio	$131,766	$1,151	+5.8%	10.48%	5.96%	-$72	Model it
10	Akron, Ohio	$138,865	$1,176	+2.7%	10.16%	5.77%	-$97	Model it
11	Memphis, Tennessee	$151,794	$1,259	+1.8%	9.95%	5.75%	-$107	Model it
12	Tuscaloosa, Alabama	$243,681	$1,701	+4.9%	8.38%	5.45%	-$216	Model it
13	Columbus, Georgia	$175,906	$1,331	+5.3%	9.08%	5.33%	-$179	Model it
14	Peoria, Illinois	$136,279	$1,240	+3.9%	10.92%	5.26%	-$157	Model it
15	Dearborn, Michigan	$247,561	$1,861	+3.9%	9.02%	5.11%	-$297	Model it
16	Pittsburgh, Pennsylvania	$234,620	$1,569	+4.0%	8.02%	5.08%	-$277	Model it
17	Augusta, Georgia	$187,663	$1,344	+4.5%	8.59%	5.01%	-$237	Model it
18	St. Louis, Missouri	$181,157	$1,292	+3.3%	8.56%	4.93%	-$241	Model it
19	Columbia, South Carolina	$227,148	$1,500	+3.1%	7.92%	4.92%	-$297	Model it
20	Chicago, Illinois	$334,108	$2,311	+5.8%	8.30%	4.81%	-$475	Model it
21	Pompano Beach, Florida	$350,137	$2,358	+2.3%	8.08%	4.75%	-$510	Model it
22	Warren, Michigan	$196,749	$1,369	+3.5%	8.35%	4.61%	-$312	Model it
23	Mobile, Alabama	$196,696	$1,258	+4.2%	7.67%	4.61%	-$306	Model it
24	Macon, Georgia	$171,522	$1,210	+3.6%	8.47%	4.61%	-$273	Model it
25	South Bend, Indiana	$198,280	$1,269	+2.4%	7.68%	4.59%	-$313	Model it
26	Lehigh Acres, Florida	$278,006	$1,812	-2.2%	7.82%	4.55%	-$449	Model it
27	Shreveport, Louisiana	$145,457	$1,149	+6.0%	9.48%	4.54%	-$246	Model it
28	Independence, Missouri	$210,944	$1,395	+2.7%	7.94%	4.49%	-$352	Model it
29	Indianapolis, Indiana	$227,445	$1,375	+2.6%	7.25%	4.38%	-$394	Model it
30	North Charleston, South Carolina	$309,108	$1,742	+3.3%	6.76%	4.36%	-$535	Model it
31	Hampton, Virginia	$279,178	$1,690	+7.2%	7.26%	4.35%	-$491	Model it
32	Hartford, Connecticut	$202,489	$1,555	+3.0%	9.22%	4.32%	-$377	Model it
33	San Tan Valley, Arizona	$392,549	$2,009	+1.8%	6.14%	4.29%	-$692	Model it
34	New Orleans, Louisiana	$241,895	$1,633	+2.1%	8.10%	4.29%	-$447	Model it
35	Palm Bay, Florida	$303,347	$1,842	+2.2%	7.29%	4.25%	-$559	Model it
36	Spring Hill, Florida	$303,307	$1,858	+0.1%	7.35%	4.25%	-$561	Model it
37	Port St. Lucie, Florida	$384,099	$2,356	+2.2%	7.36%	4.19%	-$728	Model it
38	Lansing, Michigan	$166,379	$1,197	+6.1%	8.63%	4.17%	-$327	Model it
39	Aurora, Illinois	$323,277	$2,294	+3.0%	8.52%	4.17%	-$635	Model it
40	Palmdale, California	$498,854	$2,780	+2.5%	6.69%	4.14%	-$952	Model it
41	Buckeye, Arizona	$391,189	$1,978	+1.5%	6.07%	4.12%	-$743	Model it
42	Columbus, Ohio	$243,122	$1,471	+2.9%	7.26%	4.09%	-$481	Model it
43	St. Petersburg, Florida	$351,862	$2,039	+3.0%	6.95%	4.08%	-$694	Model it
44	Kansas City, Kansas	$199,779	$1,322	+6.1%	7.94%	4.02%	-$411	Model it
45	Fayetteville, North Carolina	$221,511	$1,362	+2.3%	7.38%	4.02%	-$452	Model it
46	West Palm Beach, Florida	$404,711	$2,365	+4.1%	7.01%	3.99%	-$830	Model it
47	Clearwater, Florida	$340,654	$1,975	+0.7%	6.96%	3.99%	-$698	Model it
48	Norfolk, Virginia	$310,673	$1,749	+7.4%	6.76%	3.95%	-$643	Model it
49	Lancaster, California	$460,943	$2,460	+0.9%	6.40%	3.92%	-$961	Model it
50	Cape Coral, Florida	$334,660	$1,953	+0.6%	7.00%	3.88%	-$715	Model it

How sensitive is this to the assumptions?

Number of the 339 cities where a typical home produces positive monthly cash flow, by down payment and mortgage rate. Everything else stays the same.

Down payment	6.18%	6.68%	7.18% (this week)	7.68%
20%	6	5	4	3
25%	8	6	5	4
30%	11	9	6	6
40%	19	16	12	11

Checked against a second source.

We compared every Zillow rent with the HUD Fair Market Rent for a two-bedroom home in the same county or metro area (FY2027, effective October 1, 2026). HUD sets these rents for housing assistance using Census and survey data, independently of Zillow.

Cities compared339 of 339matched to a HUD FMR area

Median Zillow ÷ HUD rent1.021.00 = identical

Within ±25% of HUD308 of 339cities

Positive cash flow with HUD rent5 of 3395 also positive with Zillow rent

HUD Fair Market Rents are 40th-percentile gross rents (rent plus utilities) for a standard two-bedroom unit across a whole county or metro area, so they are not identical to Zillow's typical asking rent for a city. The comparison is a consistency check: rerunning the model with HUD rents instead of Zillow rents gives the same number of cash-flowing cities: Detroit, Jackson, Cleveland, Birmingham, Baltimore.

The hardest large cities for cash flow.

High home values relative to rent make positive cash flow difficult with typical financing. Investors here usually rely on appreciation, larger down payments or below-typical purchase prices.

#	City	Typical home value	Typical rent	Rent change, 1 yr	Gross yield	Modeled cap rate	Modeled monthly cash flow	Analyze
339	Paterson, New Jersey	$540,919	$1,889	+1.5%	4.19%	0.32%	-$2,700	Model it
338	Frisco, Texas	$640,131	$1,840	-0.3%	3.45%	0.79%	-$2,922	Model it
337	Austin, Texas	$491,960	$1,571	+0.8%	3.83%	0.98%	-$2,174	Model it
336	Allen, Texas	$487,619	$1,734	+1.2%	4.27%	1.09%	-$2,121	Model it
335	Berkeley, California	$1,442,475	$2,853	+3.4%	2.37%	1.10%	-$6,143	Model it
334	Bellevue, Washington	$1,386,450	$2,759	+1.8%	2.39%	1.15%	-$5,849	Model it
333	Edinburg, Texas	$212,973	$1,027	+1.4%	5.79%	1.19%	-$923	Model it
332	Sandy Springs, Georgia	$685,103	$1,680	+0.6%	2.94%	1.20%	-$2,882	Model it
331	McKinney, Texas	$472,867	$1,741	-1.6%	4.42%	1.23%	-$2,004	Model it
330	Plano, Texas	$497,714	$1,736	+0.9%	4.19%	1.29%	-$2,080	Model it

Best large city in each state.

The highest modeled cap rate among cities with 100,000+ residents in each state. States without a city that size are not listed. Full state rankings: Texas.

State	Best large city	Typical home value	Typical rent	Modeled cap rate	Modeled monthly cash flow
Michigan	Detroit	$74,742	$1,328	14.04%	$428
Mississippi	Jackson	$83,517	$1,228	10.29%	$231
Ohio	Cleveland	$115,810	$1,359	8.67%	$181
Alabama	Birmingham	$134,165	$1,305	7.21%	$60
Maryland	Baltimore	$184,804	$1,762	6.90%	$35
Pennsylvania	Philadelphia	$231,584	$1,757	6.02%	-$102
Tennessee	Memphis	$151,794	$1,259	5.75%	-$107
Georgia	Columbus	$175,906	$1,331	5.33%	-$179
Illinois	Peoria	$136,279	$1,240	5.26%	-$157
Missouri	St. Louis	$181,157	$1,292	4.93%	-$241
South Carolina	Columbia	$227,148	$1,500	4.92%	-$297
Florida	Pompano Beach	$350,137	$2,358	4.75%	-$510
Indiana	South Bend	$198,280	$1,269	4.59%	-$313
Louisiana	Shreveport	$145,457	$1,149	4.54%	-$246
Virginia	Hampton	$279,178	$1,690	4.35%	-$491
Connecticut	Hartford	$202,489	$1,555	4.32%	-$377
Arizona	San Tan Valley	$392,549	$2,009	4.29%	-$692
California	Palmdale	$498,854	$2,780	4.14%	-$952
Kansas	Kansas City	$199,779	$1,322	4.02%	-$411
North Carolina	Fayetteville	$221,511	$1,362	4.02%	-$452
Wisconsin	Milwaukee	$223,304	$1,443	3.88%	-$485
New Mexico	Rio Rancho	$360,463	$1,867	3.87%	-$764
New York	Buffalo	$244,068	$1,421	3.85%	-$529
Nevada	North Las Vegas	$401,760	$1,866	3.82%	-$856
Texas	Beaumont	$172,183	$1,287	3.73%	-$404
Oklahoma	Oklahoma City	$204,979	$1,285	3.68%	-$477
Massachusetts	Springfield	$301,926	$1,822	3.58%	-$726
Arkansas	Little Rock	$219,657	$1,184	3.46%	-$542
Kentucky	Louisville	$261,376	$1,330	3.45%	-$643
District of Columbia	Washington	$566,961	$2,484	3.41%	-$1,395
Iowa	Cedar Rapids	$215,727	$1,274	3.33%	-$560
Minnesota	Minneapolis	$328,351	$1,747	3.31%	-$851
Idaho	Nampa	$415,281	$1,668	3.12%	-$1,114
Rhode Island	Providence	$431,740	$2,190	3.10%	-$1,187
Colorado	Pueblo	$281,571	$1,323	3.04%	-$784
Hawaii	Honolulu	$774,710	$2,715	2.92%	-$2,187
New Jersey	Jersey City	$656,649	$3,101	2.85%	-$1,930
Oregon	Hillsboro	$509,612	$1,969	2.75%	-$1,520
Utah	St. George	$516,153	$1,798	2.75%	-$1,530
New Hampshire	Manchester	$434,476	$2,082	2.74%	-$1,318
Alaska	Anchorage	$422,584	$1,845	2.70%	-$1,289
Washington	Spokane	$392,803	$1,483	2.53%	-$1,242
Nebraska	Omaha	$294,607	$1,389	2.07%	-$1,058
South Dakota	Sioux Falls	$330,625	$1,279	2.06%	-$1,177
Montana	Billings	$401,071	$1,393	2.04%	-$1,425
North Dakota	Fargo	$321,568	$1,094	1.58%	-$1,266

How we built this ranking

Home value. The purchase price is the Zillow Home Value Index (ZHVI) for September 2026: the typical value of homes in the 35th to 65th percentile range in each city, covering single-family homes and condos, smoothed and seasonally adjusted.

Rent. The monthly rent is the Zillow Observed Rent Index (ZORI) for September 2026: the typical market asking rent across all rental homes and apartments, smoothed and seasonally adjusted. Using Zillow for both value and rent keeps the two figures current and measured the same way.

Property tax. We apply each city's effective tax rate (median real estate taxes ÷ median home value, U.S. Census Bureau ACS 2024 5-year estimates) to the current home value.

Insurance. The NAIC 2023 statewide average homeowners (HO-3) premium plus 25%, reflecting the Insurance Information Institute's estimate that landlord policies cost about 25% more.

Mortgage rate. 7.18%, the Freddie Mac Primary Mortgage Market Survey 30-year fixed average for the week of November 5, 2026. Investment property loans usually cost somewhat more, which would make cash flow harder, not easier; see the sensitivity table above.

Everything else is identical for every city: 25% down, a 30-year term, closing costs of 2% of the price, 5% vacancy, 5% maintenance, 8% management and 5% capital reserves. Cities are ranked by modeled cap rate, using the same formulas as our rental property calculator (methodology).

Quality checks

A city is held out for review when its Zillow rent moved more than 30% in a year or sits more than 60% above or 40% below HUD's Fair Market Rent, since smoothed indexes rarely move that much. Every Zillow rent is compared with HUD's Fair Market Rent for the same area (see above). Zillow cities are matched to Census places by state and name. Ambiguous names are skipped rather than guessed, and any match whose current value or rent is less than half or more than three times the Census median is rejected as a likely mismatch. 6 cities with at least 100,000 residents are excluded because Zillow does not publish both a value and a rent index for them: South Fulton, Enterprise, Paradise, Spring Valley, Sunrise Manor, The Woodlands.

Held out for data review this month: Abilene (Zillow rent up 31% in a year), Brownsville (Zillow rent 63% above HUD's Fair Market Rent). These cities return to the ranking automatically once the figures are consistent again.

What this ranking does not tell you

Typical values and rents describe a city as a whole, not a specific property. A high yield can reflect weak demand, older housing, high vacancy, population loss or higher crime. Appreciation, local landlord laws and property condition are not included. Use the ranking to decide where to research, then analyze real listings.

Sources and updates

Data: Zillow Home Value Index and Zillow Observed Rent Index (September 2026); Freddie Mac PMMS; U.S. Census Bureau ACS 2024 5-year estimates; NAIC 2023 Homeowners Insurance Report; HUD FY2027 Fair Market Rents. The ranking is recalculated automatically when Zillow publishes new monthly data and when Freddie Mac publishes its weekly rate. The full dataset is free to download. Journalists and bloggers may cite this ranking with a link to this page.

Best U.S. cities forrental cash flow in 2026.