Is your 2025 goal to invest in real estate for the first time? Or maybe you’re a seasoned real estate investor looking for a new opportunity? No matter your experience or expertise level, investing based on the data is important. Crunching the numbers for key factors reveals 10 of the best cities to buy rental property in 2025.
Why Buy An Investment Property?
What is an investment property? Simply put, an investment property is real estate you buy to make money. You do this by renting out the property or selling it once its value appreciates.
This differs from buying a primary residence because your personal wants and needs don’t come into play. Instead, each decision should be driven by how much money you can earn from the property.
You can invest by yourself or with a group of investors. There are many ways to invest in real estate with income properties, but all try to maximize your return on investment as much as possible.
What’s Your Goal?
Home Purchase
Home Refinance
Tap Into Equity
How Do You Find Real Estate Investment Opportunities?
You can start looking for real estate investment through online search platforms. Additional ways to learn about investment opportunities include:
- Working with a real estate agent or Realtor to find properties that fit your budget and other specifications.
- Consulting a local wholesaler, who directly markets to potential sellers and negotiates the right to purchase each seller’s property.
- Checking a multiple listing service, an online database of properties for sale used by real estate brokers and agents.
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10 Best Cities For Property Investment In 2025
Here are the 10 best cities to buy rental property in 2025.
1. Boise, Idaho
Since 2021, homebuying has surged in Boise as remote workers from all over the Western United States have relocated here. The median home value grew by almost $100,000, from $397,000 in December 2020 to $495,000 in December 2021. And the city’s real estate market remains hot. The median days on the market before a home sells decreased from 39 days in December 2023 to 27 days in December 2024.
- Median Sale Price: $497,096
- Home Appreciation Year Over Year: +13.5%
- Days On Market: 27 days
- DOM Year Over Year: -30.8%
- Median Property Taxes Paid: $2,817
- Effective Property Tax Rate: 618%
- Median Rent Asked: $1,224
- Rent Appreciation Year Over Year: +9.1%
2. St. Petersburg, Florida
St. Petersburg combines good conditions for businesses and real estate investors. The median sale price back in December 2019 was $245,000. Five years later, that figure had risen by 69.4%, reaching a median price of $415,000 in December 2024. The median home value rose 14.7% year-over-year, while rent increased 10%.
- Median Sale Price: $421,188
- Home Appreciation Year Over Year: +14.7%
- Days On Market: 41 days
- DOM Year Over Year: +17.1%
- Median Property Taxes Paid: $2,306
- Effective Property Tax Rate: 696%
- Median Rent Asked: $1,340
- Rent Appreciation Year Over Year: +10%
3. Durham, North Carolina
Durham is home to Duke University and is more than just a college town. Durham is part of the Research Triangle, which includes Raleigh, Durham, and Chapel Hill, and is home to many science and technology companies. Durham’s effective property tax rate is higher than that of St. Petersburg and Boise. And the amount paid per year, $3,115, is higher than the $2,306 paid in St. Petersburg and $2,817 paid in Boise.
- Median Sale Price: $423,024
- Home Appreciation Year Over Year: +12.2%
- Days On Market: 38 days
- DOM Year Over Year: -7.3%
- Median Property Taxes Paid: $3,115
- Effective Property Tax Rate: 877%
- Median Rent Asked: $1,269
- Rent Appreciation Year Over Year: +11.6%
4. Tampa, Florida
It’s no surprise Tampa is one of the best cities to buy rental property because St. Petersburg is right next door. According to the census, the population of Tampa rose from 343,768 in 2013 to 393,389 in 2023 – a 14.4% increase in 10 years. Home values experienced double-digit percentage growth in just one year. And rents also rose by more than 10% year over year.
- Median Sale Price: $447,804
- Home Appreciation Year Over Year: +12.6%
- Days On Market: 45 days
- DOM Year Over Year: +28.6%
- Median Property Taxes Paid: $2,832
- Effective Property Tax Rate: 755%
- Median Rent Asked: $1,390
- Rent Appreciation Year Over Year: +11.8%
5. Metro Phoenix Area, Arizona
The Phoenix metro area includes four cities that would make this list independently: Chandler, Phoenix, Gilbert and Mesa. We’ve consolidated them into one entry to reflect the hot property market in the Valley of the Sun.
Chandler
- Median Sale Price: $534,517
- Home Appreciation Year Over Year: +10.8%
- Days On Market: 53 days
- DOM Year Over Year: +15.2%
- Median Property Taxes Paid: $2,262
- Effective Property Tax Rate: 481%
- Median Rent Asked: $1,650
- Rent Appreciation Year Over Year: +11%
Phoenix
- Median Sale Price: $450,079
- Home Appreciation Year Over Year: +12.3%
- Days On Market: 57 days
- DOM Year Over Year: +26.7%
- Median Property Taxes Paid: $1,825
- Effective Property Tax Rate: 478%
- Median Rent Asked: $1,274
- Rent Appreciation Year Over Year: +11.6%
Gilbert
- Median Sale Price: $584,825
- Home Appreciation Year Over Year: +14.2%
- Days On Market: 58 days
- DOM Year Over Year: +20.8%
- Median Property Taxes Paid: $2,381
- Effective Property Tax Rate: 459%
- Median Rent Asked: $1,781
- Rent Appreciation Year Over Year: +8.5%
Mesa
- Median Sale Price: $460,958
- Home Appreciation Year Over Year: +11.2%
- Days On Market: 54 days
- DOM Year Over Year: +28.6%
- Median Property Taxes Paid: $1,549
- Effective Property Tax Rate: 425%
- Median Rent Asked: $1,549
- Rent Appreciation Year Over Year: +11%
6. Spokane, Washington
The largest city in eastern Washington, Spokane has seen a dramatic increase in housing activity over the past five years. The median sale price in Spokane was $225,000 in December 2019. By December 2024, it had risen by 67.1%, reaching a median of $376,000. One drawback is the comparatively high property taxes. Spokane’s effective property tax rate of 0.829% is only slightly less than Durham’s 0.877%.
- Median Sale Price: $370,604
- Home Appreciation Year Over Year: +13.7%
- Days On Market: 35 days
- DOM Year Over Year: +29.6%
- Median Property Taxes Paid: $2,705
- Effective Property Tax Rate: 829%
- Median Rent Asked: $997
- Rent Appreciation Year Over Year: +8.1%
7. North Las Vegas, Nevada
North Las Vegas is a separate municipality from Sin City – where Las Vegas has casinos, North Las Vegas has suburban homes. The city’s population has grown 23.2% over the last 10 years. Home prices saw their biggest year-over-year growth from 2020 to 2021. In December 2020, the median sale price was $300,000. One year later, the median had soared to $377,500.
- Median Sale Price: $412,869
- Home Appreciation Year Over Year: +9.4%
- Days On Market: 47 days
- DOM Year Over Year: +6.8%
- Median Property Taxes Paid: $1,801
- Effective Property Tax Rate: 484%
- Median Rent Asked: $1,356
- Rent Appreciation Year Over Year: +8.4%
8. Buffalo, New York
Buffalo is the second-largest city in New York, and its real estate market is active. Homes spent an average of 18 days on the market in December 2024, up only three days from the previous December. Property taxes keep Buffalo from ranking higher. While $1,625 per year isn’t much in absolute terms, it represents an effective property tax rate of 1.067%, which is higher than the first seven cities on our list.
- Median Sale Price: $191,813
- Home Appreciation Year Over Year: +15.3%
- Days On Market: 18 days
- DOM Year Over Year: +20%
- Median Property Taxes Paid: $1,625
- Effective Property Tax Rate: 067%
- Median Rent Asked: $820
- Rent Appreciation Year Over Year: +5.1%
9. Enterprise, Nevada
Enterprise is southwest of Las Vegas, its northeast corner touching Harry Reid International Airport. Like North Las Vegas, Enterprise ranks among the best cities for property investment, thanks to various factors. Rents have appreciated more than home values in Enterprise. Home prices, though, have risen significantly over the past five years. From $308,000 in December 2019, the median sale price grew by 57.5%, reaching $485,000 in December 2024.
- Median Sale Price: $485,037
- Home Appreciation Year Over Year: +8.6%
- Days On Market: 54 days
- DOM Year Over Year: +17.4%
- Median Property Taxes Paid: $1,649
- Effective Property Tax Rate: 541%
- Median Rent Asked: $1,649
- Rent Appreciation Year Over Year: +9.4%
10. Aurora, Colorado
Once merely a suburb of Denver, Aurora has grown to a large city with a population of over 386,000. Rent appreciation has moved almost exactly in line with home value appreciation, around 8.5% year-over-year. Home prices saw their biggest year-over-year increase occur from 2020 to 2021. The median sale price rose from $373,000 in December 2020 to $450,000 in December 2021.
- Median Sale Price: $477,976
- Home Appreciation Year Over Year: +8.5%
- Days On Market: 46 days
- DOM Year Over Year: +27.8%
- Median Property Taxes Paid: $2,321
- Effective Property Tax Rate: 522%
- Median Rent Asked: $1,620
- Rent Appreciation Year Over Year: +8.4%
Best Cities For Property Investment At A Glance
| Rank | Rank City | Median sale price | Home Value Appreciation | Days on Market | Days on Market YOY Change | Median Property Taxes Paid | Effective Property Tax Rate |
|---|---|---|---|---|---|---|---|
| 1 | Boise, ID | $497,096 | 13.5% | 27 | -30.8% | $2,817 | 0.618% |
| 2 | St. Petersburg, FL | $421,188 | 14.7% | 41 | 17.1% | $2,306 | 0.696% |
| 3 | Durham, NC | $423,024 | 12.2% | 38 | -7.3% | $3,115 | 0.877% |
| 4 | Tampa, FL | $447,804 | 12.6% | 45 | 28.6% | $2,832 | 0.755% |
| 5 | Chandler, AZ | $534,517 | 10.8% | 53 | 15.2% | $2,262 | 0.481% |
| Phoenix, AZ | $450,079 | 12.3% | 57 | 26.7% | $1,825 | 0.478% | |
| Gilbert, AZ | $584,825 | 14.2% | 58 | 20.8% | $2,381 | 0.459% | |
| Mesa, AZ | $460,958 | 11.2% | 54 | 28.6% | $1,549 | 0.425% | |
| 6 | Spokane, WA | $370,604 | 13.7% | 35 | 29.6% | $2,705 | 0.829% |
| 7 | North Las Vegas, NV | $412,869 | 9.4% | 47 | 6.8% | $1,801 | 0.484% |
| 8 | Buffalo, NY | $191,813 | 15.3% | 18 | 20.0% | $1,625 | 1.067% |
| 9 | Enterprise, NV | $485,037 | 8.6% | 54 | 17.4% | $2,432 | 0.541% |
| 10 | Aurora, CO | $477,976 | 8.5% | 46 | 27.8% | $2,321 | 0.522% |
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Methodology: Finding The Best Cities For Property Investment
Our ranking is based on the following factors and sources:
- Median sale price: This represents the middle home prices in an area based on homes sold in the last 12 months, sourced from Redfin.
- Home value appreciation: This is the percentage increase in median home value over the last year, sourced from the U.S. Census Bureau.
- Days On Market: This is the median number of days a home sat on the market before selling, sourced from Redfin.
- Property taxes paid: This is the median property tax amount paid per year by property owners, sourced from the Census Bureau.
- Effective Property Tax Rate: This is based on dividing the median property taxes paid by the median home value in the city, sourced from the Census Bureau.
- Rent asked: This is the median rent asked, which is the initial rental price advertised as opposed to the contract rent, sourced from the Census Bureau.
- Rent appreciation: This is the year-over-year increase in the asked rent on the city level, based on Census Bureau data.
Each of these factors was given a score and then all factors were summed up for an overall score. Then, they were ranked.
The Bottom Line
Cities with strong housing markets and investment potential are spread across the country, so there are plenty of opportunities no matter where you want to invest. Use the information you’ve found here and continue to research on your own to find the best real estate investment opportunities for your individual needs.
More From Quicken Loans:
- How To Invest In Income-Producing Real Estate
- How To Invest In Real Estate: A Beginner’s Guide
- Types Of Real Estate Investments: A Complete Guide
- Real Estate Investment Strategies For Retirement
- Is Real Estate A Good Investment? What You Should Know
- Putting A Down Payment On Investment Property: What To Know
Andrew DePietro
Andrew DePietro is a writer and researcher with years of experience in the personal finance world. With a background in economic history, he covers topics such as small business, investing, real estate and housing markets, Social Security, taxes and more. His work has appeared on MSN, Yahoo Finance, Fortune, Forbes, CBS and U.S. News & World Report, among others.
