Best States to Buy Rental Property (2026)
Data updated April 2026 · Top 25 of 50 states
Ranked by statewide annual rent-to-price ratio from Zillow medians (April 2026). Mississippi leads at 6.1%. State medians hide city-level spread — use this to pick a region, then drill into the state page for the cities that actually clear your numbers.
| # | State | Rent / Price | Median Home Value | Median Rent | Rent / Price |
|---|---|---|---|---|---|
| 1 | Mississippi | 6.1% | $194,242 | $990/mo | 6.1% |
| 2 | West Virginia | 6.1% | $174,876 | $883/mo | 6.1% |
| 3 | Louisiana | 5.9% | $214,727 | $1,064/mo | 5.9% |
| 4 | Texas | 5.9% | $302,187 | $1,475/mo | 5.9% |
| 5 | Florida | 5.8% | $376,504 | $1,812/mo | 5.8% |
| 6 | Oklahoma | 5.6% | $221,764 | $1,044/mo | 5.6% |
| 7 | Illinois | 5.5% | $290,210 | $1,322/mo | 5.5% |
| 8 | Alabama | 5.5% | $236,704 | $1,077/mo | 5.5% |
| 9 | Georgia | 5.4% | $333,559 | $1,506/mo | 5.4% |
| 10 | Ohio | 5.3% | $244,843 | $1,090/mo | 5.3% |
| 11 | Michigan | 5.3% | $263,589 | $1,168/mo | 5.3% |
| 12 | Arkansas | 5.3% | $222,299 | $982/mo | 5.3% |
| 13 | Kansas | 5.3% | $246,369 | $1,079/mo | 5.3% |
| 14 | Pennsylvania | 5.2% | $286,387 | $1,252/mo | 5.2% |
| 15 | Indiana | 5.2% | $256,583 | $1,104/mo | 5.2% |
| 16 | Kentucky | 5.2% | $232,231 | $998/mo | 5.2% |
| 17 | Iowa | 5.0% | $234,891 | $981/mo | 5.0% |
| 18 | South Carolina | 5.0% | $305,173 | $1,272/mo | 5.0% |
| 19 | Missouri | 4.8% | $265,397 | $1,067/mo | 4.8% |
| 20 | Maryland | 4.8% | $431,934 | $1,721/mo | 4.8% |
| 21 | Virginia | 4.8% | $414,320 | $1,646/mo | 4.8% |
| 22 | North Carolina | 4.8% | $337,272 | $1,338/mo | 4.8% |
| 23 | Nebraska | 4.7% | $279,080 | $1,102/mo | 4.7% |
| 24 | Arizona | 4.7% | $423,745 | $1,672/mo | 4.7% |
| 25 | Tennessee | 4.6% | $334,074 | $1,284/mo | 4.6% |
Frequently asked questions
How is this state ranking calculated?
Ranked by statewide annual rent-to-price ratio from Zillow medians (April 2026). Full sources and refresh cadence are on our methodology page; data is refreshed when Zillow and Census publish updates.
What is a good rent-to-price ratio?
The median U.S. state sits at 4.6% annual rent-to-price (April 2026). The old "1% rule" (monthly rent ≥ 1% of price, i.e. 12% annual) is rare in today's market — most investors treat anything meaningfully above the median as cash-flow territory and verify with a full expense model.
About this data: compiled by RehabRange from Zillow Research (ZHVI home values, ZORI rents), U.S. Census Bureau (ACS population and income, Building Permits Survey), Bureau of Labor Statistics (unemployment), FBI Crime Data Explorer, FEMA, and Tax Foundation. Last updated April 2026.
RehabRange is built by Mitchell Haughton, a practicing eastern-Connecticut real estate investor — the same screens he runs before walking a property. How we rank markets