Name the purpose first.
The market follows.
Cleveland yields 14.13% and grew 15.6% in five years. Seattle yields 3.12% and grew 4.0%. Neither is a mistake — they are different products, and the wrong one bought for the wrong reason is the most common expensive error.
Before you read on
- Figures are Zillow ZHVI and ZORI as of mid-2026. Gross yields are before every cost.
- General information rather than investment advice. Nothing here recommends a specific market for a specific person.
- Confirm the parcel's actual property tax with the county assessor. State averages mislead in every market on this page.
Point 1The three axes, and why you can have two
Yield, growth and liquidity. Markets that offer all three do not stay cheap.
| Market | Gross yield | 5-yr growth | Resale pool |
|---|---|---|---|
| Cleveland | 14.13% | +15.6% | Local |
| Memphis | 10.46% | +9.7% | Local |
| Chicago | 8.62% | +11.2% | National |
| Philadelphia | 9.17% | +7.1% | Regional |
| Atlanta | 5.92% | +5.3% | National |
| Miami | 6.19% | +43.4% | International |
| San Diego | 3.64% | +24.4% | National |
| Seattle | 3.12% | +4.0% | National |
Miami is the outlier that pairs a strong yield with strong growth — and pays for it in insurance costs, which the yield column does not show.
Read the resale column carefully, because it is the axis buyers forget. A property in a market with a local buyer pool sells on a timetable the market chooses. A property in New York, Miami or San Diego can be sold to someone who has never visited the street.
Point 2What each type of market asks of you
Cleveland, Memphis, Philadelphia. They demand a manager you have tested and honest reserves for older housing. The gap between gross and net is widest here.
Atlanta, Chicago, the Carolina Triad. Genuine cash flow with national liquidity, and the fewest structural surprises for a first US purchase.
Miami, San Diego, parts of Texas. Appreciation records and thinner or insurance-eroded income. The carry has to be fundable from elsewhere.
New York, coastal California. Bought for legal certainty and a global resale pool, not for income. Expect negative leveraged carry.
Texas, Florida, Nevada, Tennessee, Washington. Real for owners taxed by a state — but Texas and Florida charge for it through property tax and insurance.
Denver, Austin, parts of the Mountain West. Entry below recent peaks, with no confirmation the bottom has arrived.
Point 3The costs that reorder every shortlist
Three line items move a market's ranking more than the yield column does.
Property tax. Texas runs roughly 1.5-2.2% of value and Illinois is among the highest in the country. On a $300,000 property that is $4,500 to $6,600 a year, consuming a quarter or more of the gross rent. Always obtain the parcel’s actual bill rather than a state average — and never model the seller’s homesteaded figure.
Insurance. Florida and other coastal markets have repriced sharply. A quote for the specific address, not a regional assumption, is what belongs in the model.
Management and turnover. At a $150,000 entry price a single vacant month costs 8% of annual gross. In high-yield markets the manager is closer to being the investment than the property is.
Point 4Concentrate before you diversify
An investor holding one property each in four states has four managers, four sets of tax filings and no depth of knowledge anywhere. Building three or four properties in one market with one manager produces better outcomes at small scale, and the diversification argument only starts to bind once the operation has proved itself.
The choice of that first market therefore matters more than any subsequent one. Choose it for the purpose you can state plainly — income you will draw, capital you will hold, or an asset you will use — and the shortlist narrows to a handful before any property is viewed.
Cleveland at roughly 14.13% gross on Zillow mid-2026 figures, followed by Baltimore at 11.2% and Memphis at 10.46%. Net yields are far lower in all three.
Historically much less. The cities with the highest yields are consistently those with the weakest price growth — yield and appreciation trade against each other.
Only if a state taxes you. Texas and Florida fund government through property tax and, in Florida, insurance costs — both of which come out of the same rent.
One, until the operation is proved. Concentration gives you one manager, one tax regime and real local knowledge; diversification at small scale mostly multiplies administration.
How wide the buyer pool is when you sell. Local, regional, national or international — and it determines whether you sell on your timetable or the market's.
If the property is for your own use, yes — that is a legitimate purpose. Just do not expect it to also be the best income asset, because it almost never is.
RELATED GUIDES
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Important notice
The figures on this page are general information as of August 2026 and do not represent an offer, a quote, or a guarantee of any transaction terms. Reinvent NY does not provide legal, tax, or investment advice. Confirm anything material with an attorney and a CPA before you act on it. Nothing here is a solicitation to invest, and no return is promised. Real estate brokerage services are provided through R New York.