The best cities for rental property investment in 2026 are not the ones with the highest yields alone; they are the ones where yield, rent growth and population growth point the same way. As of May 31, 2026, Detroit offered a 20.7% gross rent yield but had lost 5.4% of its population between 2019 and 2024, while Jacksonville, Florida yielded 6.6% and grew 9.8% over the same years, according to Zillow-based housing data and Census demographics on DataPorium [1][2]. Between those extremes sit Oklahoma City (7.3% yield, +8.3% population), Kansas City (6.7%, +5.0%) and Columbus (6.9%, +4.1%) [1][2]. This ranking scores 18 large cities on all three measures with data available at the start of July 2026.
How the ranking works
Each city is measured on three public numbers. Yield is Zillow's observed rent index for all homes and apartments, annualized and divided by Zillow's typical home value, both as of May 31, 2026 [1]. Growth is the change in that rent index from May 2025 to May 2026 and the change in the home value index from November 2025 to May 2026 [1]. Population is the change from 2019 to 2024 in Census estimates published through DataPorium's demographics data, with the 2024 housing vacancy rate as a check on demand [2]. The national benchmark is a 6.3% gross yield on a typical home valued at $366,072 renting for $1,931.06 [1], and the 30-year mortgage averaged 6.49% in the week of July 9, 2026 [3].
| City | Gross rent yield, May 2026 | Rent change, May 2025 to May 2026 | Home value change since Nov 2025 | Population change, 2019 to 2024 | Housing vacancy rate, 2024 |
|---|---|---|---|---|---|
| Detroit, MI | 20.7% [1] | +2.7% [1] | -4.9% [1] | -5.4% [2] | 21.7% [2] |
| Cleveland, OH | 13.6% [1] | +3.7% [1] | 0.0% [1] | -5.0% [2] | 15.6% [2] |
| Birmingham, AL | 11.4% [1] | +1.0% [1] | -2.0% [1] | -6.7% [2] | 18.8% [2] |
| Baltimore, MD | 11.1% [1] | +1.8% [1] | -1.0% [1] | -5.9% [2] | 13.3% [2] |
| Memphis, TN | 10.0% [1] | +0.6% [1] | -1.0% [1] | -5.1% [2] | 12.7% [2] |
| St. Louis, MO | 8.6% [1] | +4.6% [1] | 0.0% [1] | -6.4% [2] | 16.8% [2] |
| Milwaukee, WI | 7.7% [1] | +4.1% [1] | +2.5% [1] | -4.6% [2] | 10.3% [2] |
| Pittsburgh, PA | 7.7% [1] | +4.3% [1] | -0.6% [1] | +0.8% [2] | 14.7% [2] |
| Oklahoma City, OK | 7.3% [1] | +3.1% [1] | +0.1% [1] | +8.3% [2] | 8.6% [2] |
| Indianapolis, IN | 7.1% [1] | +1.8% [1] | +0.2% [1] | +2.5% [2] | 9.6% [2] |
| Houston, TX | 7.0% [1] | -1.0% [1] | -1.0% [1] | +0.8% [2] | 10.6% [2] |
| Columbus, OH | 6.9% [1] | +1.0% [1] | -0.3% [1] | +4.1% [2] | 8.2% [2] |
| Kansas City, MO | 6.7% [1] | +3.8% [1] | +0.6% [1] | +5.0% [2] | 9.5% [2] |
| Jacksonville, FL | 6.6% [1] | +0.6% [1] | +0.3% [1] | +9.8% [2] | 8.5% [2] |
| New York, NY | 5.9% [1] | +5.7% [1] | +2.5% [1] | +0.8% [2] | 9.4% [2] |
| Charlotte, NC | 5.3% [1] | +0.2% [1] | -0.5% [1] | +5.4% [2] | 7.6% [2] |
| Los Angeles, CA | 3.6% [1] | +0.8% [1] | -0.8% [1] | -2.8% [2] | 7.4% [2] |
| San Jose, CA | 3.0% [1] | +4.9% [1] | -1.5% [1] | -3.7% [2] | 4.8% [2] |
Three groups of cities, three different investments
High yield, shrinking population
Detroit, Cleveland, Birmingham, Baltimore, Memphis and St. Louis all yield more than 8.5% gross, and all lost between 4.6% and 6.7% of their residents from 2019 to 2024 [1][2]. Vacancy rates of 12.7% to 21.7% show the other side of the same fact: there are more housing units than households [2]. Prices reflect it; Detroit's typical home value fell 4.9% in the six months to May 2026 and Birmingham's fell 2.0% [1]. Rents, however, kept rising in most of these cities (Cleveland +3.7%, St. Louis +4.6%, Milwaukee +4.1%) [1], because the remaining housing stock that is in good condition is scarce even where total units are not. These markets suit investors who can renovate, screen tenants closely and accept that the exit price may not exceed the entry price.
Moderate yield, growing population
Oklahoma City, Kansas City, Columbus, Indianapolis and Jacksonville yield 6.6% to 7.3%, close to the national 6.3%, but their populations grew 2.5% to 9.8% over five years and their vacancy rates sit between 8.2% and 9.6% [1][2]. The Census Bureau's May 14, 2026 estimates confirm the direction: Jacksonville reached 1,017,689 residents and Columbus 938,396 as of July 1, 2025, both among the 15 largest U.S. cities, and Charlotte added 20,731 residents in one year, more than any other city [4]. These markets offer less current income and more demand growth, which is what allows rents and values to compound.
Growth without yield
Charlotte, New York, Los Angeles and San Jose show the third pattern. Charlotte grew 5.4% from 2019 to 2024 and added more residents in the year to July 2025 than any other U.S. city, 20,731 [2][4], yet its 5.3% gross yield trails the national figure because prices have climbed ahead of rents. New York yields 5.9% on a typical value of $818,299 with rents up 5.7% in a year, while Los Angeles (3.6%) and San Jose (3.0%) yield less than half the national rate and both lost population from 2019 to 2024 [1][2]. Vacancy is low in all four, between 4.8% and 9.4% [2], so these markets are bets on scarcity and long-run appreciation rather than on income.
What the numbers say about where to invest
- Yield alone ranks Detroit first, but a 20.7% gross yield with a 21.7% vacancy rate and falling prices is compensation for risk rather than excess return [1][2].
- Growth alone ranks Jacksonville and Oklahoma City first, yet a 6.6% to 7.3% gross yield leaves little cushion against a 6.49% mortgage rate, so these deals depend on rent growth arriving [1][3].
- Combining the three measures, Oklahoma City, Kansas City, Columbus and Indianapolis score best: above-national yields, rising rents, stable values and growing populations [1][2].
- Pittsburgh and Milwaukee are the value cases: 7.7% yields with rents up more than 4% in a year, stable or rising values and, in Pittsburgh's case, a population that grew 0.8% [1][2].
- Investors can rerun this screen for any metro, city or ZIP code on the DataPorium housing market page and check demographics through the property finder [1][2].
The economic logic is consistent with how capital should move. Cities that grow do so because jobs, taxes and regulation make them cheaper places to live and build, and investors who follow population accept lower current yields as the price of that growth. Cities that shrink offer higher yields because fewer buyers compete for their housing; the yield is the market's way of attracting capital back. Neither is a mistake. The fair caution is that Census population figures lag by more than a year and that a six-month home value change is a short window; investors may consider these numbers a screen rather than a verdict, and price each property on its own cap rate.
The best rental market pays a yield above the mortgage rate in a city that people are still moving to, and few cities do both at once.
Key takeaways
- As of May 31, 2026, gross rent yields ranged from 20.7% in Detroit to 3.0% in San Jose among the 18 large cities screened, against a national 6.3% [1].
- Every city yielding above 8.5% lost population between 2019 and 2024 and carries a housing vacancy rate above 12% [1][2].
- Oklahoma City, Kansas City, Columbus and Indianapolis combine yields of 6.7% to 7.3% with population growth of 2.5% to 8.3% and vacancy under 10% [1][2].
- Rents rose more than 4% in a year in St. Louis, Pittsburgh and Milwaukee even as their values were flat [1].
- With the 30-year mortgage at 6.49% in early July 2026, only the higher-yield cities clear the cost of debt before expenses [3].
Frequently asked questions
What are the best cities to buy rental property in 2026?
On a combined screen of yield, rent growth and population growth as of May 2026, Oklahoma City (7.3% gross yield, +8.3% population 2019 to 2024), Kansas City (6.7%, +5.0%), Columbus (6.9%, +4.1%) and Indianapolis (7.1%, +2.5%) score best; Detroit and Cleveland offer the highest yields but shrinking populations [1][2].
Which U.S. city has the highest rental yield?
Detroit, at 20.7% gross as of May 31, 2026, based on a typical rent of $1,331 and a typical home value of $77,052; its 2024 housing vacancy rate was 21.7% [1][2].
Is population growth more important than rental yield?
They answer different questions. Yield measures today's income; population growth predicts future demand for that income. High-yield cities with shrinking populations pay more now, and growing cities with moderate yields rely on rent growth, so the choice depends on the investor's horizon and need for current cash flow [1][2].
What is the average rental yield in the United States in 2026?
About 6.3% gross as of May 31, 2026, based on a typical home value of $366,072 and a typical rent of $1,931.06 per month in Zillow-based data on DataPorium [1].
