The Cheapest Investor-Friendly Cities in the US
Where median home values are low enough that small operators can deploy capital efficiently — without sacrificing market fundamentals.
DATA · ZILLOW REGIONAL ROLLUPS · 12 CITIES
- 01Detroit, MIMedian value $76k, 20.99% gross yield$76kMEDIAN HOME VALUEMEDIAN $76kYoY -3.9%RENT $1,338/moYIELD 20.99%
- 02Jackson, MSMedian value $88k, 17.10% gross yield$88kMEDIAN HOME VALUEMEDIAN $88kYoY -0.7%RENT $1,255/moYIELD 17.10%
- 03Cleveland, OHMedian value $118k, 14.53% gross yield$118kMEDIAN HOME VALUEMEDIAN $118kYoY -2.1%RENT $1,425/moYIELD 14.53%
- 04Toledo, OHMedian value $130k, 10.35% gross yield$130kMEDIAN HOME VALUEMEDIAN $130kYoY +5.1%RENT $1,122/moYIELD 10.35%
- 05Birmingham, ALMedian value $137k, 11.39% gross yield$137kMEDIAN HOME VALUEMEDIAN $137kYoY -2.1%RENT $1,303/moYIELD 11.39%
- 06Dayton, OHMedian value $139k, 10.36% gross yield$139kMEDIAN HOME VALUEMEDIAN $139kYoY +1.3%RENT $1,199/moYIELD 10.36%
- 07Akron, OHMedian value $141k, 9.70% gross yield$141kMEDIAN HOME VALUEMEDIAN $141kYoY +2.5%RENT $1,135/moYIELD 9.70%
- 08Memphis, TNMedian value $147k, 10.23% gross yield$147kMEDIAN HOME VALUEMEDIAN $147kYoY -3.2%RENT $1,256/moYIELD 10.23%
- 09Lansing, MIMedian value $166k, 8.79% gross yield$166kMEDIAN HOME VALUEMEDIAN $166kYoY +3.3%RENT $1,218/moYIELD 8.79%
- 10Columbus, GAMedian value $175k, 8.40% gross yield$175kMEDIAN HOME VALUEMEDIAN $175kYoY +1.5%RENT $1,226/moYIELD 8.40%
- 11St. Louis, MOMedian value $186k, 8.88% gross yield$186kMEDIAN HOME VALUEMEDIAN $186kYoY +0.2%RENT $1,379/moYIELD 8.88%
- 12Baltimore, MDMedian value $192k, 11.02% gross yield$192kMEDIAN HOME VALUEMEDIAN $192kYoY -1.3%RENT $1,760/moYIELD 11.02%
How the ranking is computed.
Ranked by lowest median home value (Zillow ZHVI), filtered to only include markets with ≥5% gross rent yield. The yield filter excludes ultra-cheap markets where yields are still terrible (rare but possible) and ensures every result is at least cash-flow-viable.
Frequently asked.
Why filter to 5% yield?
Without the filter, the ranking would surface markets that are cheap because nobody wants to invest there — declining populations, no rent demand. Filtering to ≥5% yield ensures every result is at least operationally viable.
How small can a portfolio be in these markets?
With median values in the $100-200k range, a single private-money loan or HELOC can fund a first acquisition. The economics of small portfolios work in low-price markets in ways they don't in $400k+ markets.
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