Best U.S. Cities for Real Estate Investment in 2025

Looking for the best real estate investment in USA for 2025? I’ve bought over 120 U.S. rental properties remotely since 2016. Today, I help other investors from all over the world buy rental properties in the United States. One of the very first questions I get asked by new clients is; what are the best U.S. cities for real estate investment? Personally, I prefer the suburbs of secondary markets. That’s where I find the best combination of cashflow, equity growth, and solid rental demand.

Here’s a deep dive into the top cities to find investment properties in USA that deliver cash flow, appreciation, and long-term security.

Cleveland, Ohio

Cleveland is a Great Real Estate Market for Stable Cashflow and Equity Growth

Cleveland ranks high among the most affordable cities for investment properties in USA. With median prices around $200K and cap rates between 7 to 8%, it’s a top choice for stable cash flow.

That said, you need to be careful buying investment properties in Cleveland. Some neighbourhoods – especially on the East side of the city – can be quite rough. It’s easy to get tempted by low property prices and high rental yields, but this often comes hand-in-hand with a problematic tenant base and poor equity growth. I find the best neighbourhoods for rental properties are to the South and West of the city. You’ll pay a higher price, but I’d rather overpay for the right property than get a discount on a headache!

The National Association of Realtors Chief Economist also just noted Cleveland as one of the 2 real estate markets most likely to benefit from falling mortgage rates. With rates expected to fall gradually through 2026, there are lot of buyers ready to come onto the market. That increase in demand will continue to support house price growth.

Related: USA Property Investment For Foreign Buyers: 2025 Guide

Kansas City, Missouri

Kansas City Has Some of the Best Real Estate Investment Opportunities in the USA

As a standout among real estate investment opportunities in USA, Kansas City offers balance: moderate appreciation around 5% (depending on the neighbourhood) plus high cap rates and low property taxes (~$500/year). Fidelity highlighted it as a top Midwest market in mid‑2025.

While houses prices in Kanas City are a little higher then Cleveland, the lower operating costs mean that investment properties in Kansas City tend to cashflow better. You can pick up a solid turnkey rental property in Kansas City for between $170,000 and $250,000. Properties in that price range can attract rents of between $1,600 and $2,200 per month.

Again, when we’re looking for cheaper investment properties, we have to be careful not to buy in the ‘hood’. Neighbourhoods like Independence and Swoop Park offer some great investment opportunities. As point of interest, Kansas City was the other market noted by NAR as most likely to benefit from falling mortgage rates.

Related: How to Buy Investment Property In the USA as a Foreigner

Toledo, Ohio

For the Best Real Estate Investment in the USA – Check out Toledo Ohio

Toledo stands out for high returns. Median home prices are under $130K, and cap rates often hit 8 to 10%. I work with a great team on the ground in Toledo. It’s a fantastic market for value-add investing like the BRRRR strategy.

I recently managed a value-add project in Toledo for a Canadian investor. We sourced the property for $55,000, and spent around $30,000 on the renovation, for a total investment of about $90,000 including costs. The property rented for $1,325 per month, and the after repair value came in at $130,000. With a gross equity profit of around $30,000, and solid positive cashflow, Toledo is a great city to target for real estate investment opportunities in USA.

Related: Best Investment Properties in the USA in 2025

Birmingham, Alabama

Birmingham Alabama is a Great Option For Stable investment Properties in the USA

Birmingham, Alabama is frequently cited among the cities offering top investment properties in USA. With a median sales of around $310K and cap rates between 7 to 9%, you can pick up solid rental property that delivers stable cashflow from day one.

Birmingham’s economy is centred around education, healthcare and manufacturing. With U.S. economic policy focussed on reshoring further manufacturing from overseas, Birmingham is on the of metro areas likely to benefit.

I personally like neighbourhoods around the outskirts of the metro area. You’ll find lower property prices and string rental demand for quieter neighbourhoods within a 30 minute drive to downtown Birmingham.

Related: The Best Real Estate Investment Companies in the USA in 2025

Huntsville, Alabama

Huntsville Alabama Offers Some of the Best Real Estate Investment Opportunities in the USA

Huntsville is one of the fastest‑growing U.S. cities and a lesser-known gem for real estate investment in USA. With rapid job growth and median prices near $260K, it’s a high-potential secondary market for rental property investors.

For me, it’s Huntsville’s economy that makes it so appealing as a real estate investment market. You’ll find a diverse mix of businesses, including aerospace, defence, information technology, bioscience, and advanced manufacturing.

Like Birmingham, there are some fantastic quieter neighbourhoods around the outskirts of Huntsville. You can pick up solid rental properties in B class neighbourhoods in the low $200’s. Those properties can deliver rents around $1,500, and lower property taxes mean cashflow after financing costs can be very good.

Related: Is Buy to Let in the USA a Good Investment in 2025

Final Thoughts

The best real estate investment markets in the USA blend affordability, yield, and stable fundamentals. I’ve bought a lot of real estate in the USA, and the the best markets are those that offer stability. While you might finds higher potential rental yields elsewhere, it can be a fools errand chasing cashflow as your only metric.

The best way to make money in real estate is slow and steady. Don’t chase the $500 per month cashflow check. Instead, look for real estate markets that are supported by sound fundamentals. Aim to hold your property for the long term, and let time do the heavy lifting for you. The end goal should be to have your rental income pay off your mortgage.

Cleveland, Kansas City, Toledo, Birmingham and Huntsville tick all the boxes for sustainable cash flow and long-term growth. Whether you’re domestic or an international investor, these cities offer a realistic prospect of growing your wealth over the long-term.

Frequently Asked Questions

Where is the best real estate investment in the USA?

It depends on your investment goals. For strong cash flow, cities like Cleveland, Kansas City, and Toledo offer high rental yields and low entry costs. For appreciation, look at markets like Huntsville, Austin, or Raleigh.

Is real estate a good investment in the USA?

Yes, U.S. real estate remains one of the most stable and secure asset classes. With long-term appreciation, tax advantages, and rental income, it’s an ideal strategy for both domestic and international investors.

Which state is best to buy property in the USA?

States like Ohio, Alabama, and Missouri are excellent for cash flow due to low property prices and strong rental demand. Florida and Texas are better for appreciation and population growth but can have higher competition and property taxes.

What is the hottest real estate market in the USA?

Markets like Huntsville, Alabama and Tampa, Florida are seeing strong demand, job growth, and population inflows. These cities are outperforming national averages in both rent growth and appreciation.

What is the hottest housing market in 2025?

In 2025, Huntsville, Kansas City, and Cleveland are among the hottest housing markets for investors, combining affordability with high rental yields and future growth potential.