Best States for Real Estate Investing in 2026: A Data-Backed Shortlist for Rental Investors

This guide to the best states for real estate investing compares all 50 states and Washington, D.C., on published government and industry data, explains how the shortlist was chosen, and shows where each state's numbers work against you. It covers long-term, buy-and-hold residential rentals (single-family homes and small multifamily) only. Vacation rentals run on different math and rules; for those, start with our framework for finding short-term rental markets.

The seven, each with its main strength and main drawback:

• North Carolina: the most net domestic migration of any state; heavy new construction and above-average vacancy.
• South Carolina: the fastest population growth; high vacancy, and rentals are taxed more heavily than owners' homes.
• Alabama: low prices relative to rent and low property tax; rentals are assessed at twice the homeowner rate.
• Texas: the most jobs added and no state income tax; high property tax, insurance and vacancy.
• Oklahoma: one of the lowest price-to-rent ratios; high insurance premiums.
• Missouri: solid job growth and little new construction; slow population growth and conflicting vacancy data.
• Ohio: low vacancy, little new construction and a low average homeowners premium; slow growth and above-average property tax.

If you're new to rentals, start with real estate investing for beginners; this guide assumes you know what cash flow and a vacancy rate are. Figures were compiled in October 2026 from the latest available releases; each one's data period is listed below.

How the shortlist was built

Think of it as a funnel. Every state and D.C. went through the same steps, most of them pass-fail tests against the national figures. No composite score was calculated, and the order of the states in this guide is not a ranking.

The tests, step by step

1. Demand: are jobs and people arriving? A state passed if payroll jobs and population both grew faster than the U.S. and more people moved in from other states than left. Fifteen states passed.
2. Entry price: is rent high relative to home values? Six of the 15 had a price-to-rent ratio below the national 20.2: Alabama, Arkansas, Florida, Oklahoma, South Carolina and Texas. North Carolina, at 20.7, was kept because its demand figures were among the strongest in the country. The other eight, including Tennessee, Arizona, Idaho and Utah, were priced above the national ratio.
3. Costs, momentum and law. Property tax, insurance, vacancy and new construction were weighed as drawbacks, not used as automatic cutoffs. Then each state's demand trend over several years was checked and each finalist's statutes were read. Florida dropped out because its migration has faded faster than that of any other state that passed the demand test, and Arkansas became an alternate because its statutes could not be verified from official text (see "States that just missed").
4. A second route for slower-growing states. A state could also qualify if its price-to-rent ratio, new construction and rental vacancy were all below the national figures, more people moved in from other states than left, and payroll jobs were still growing. Five states cleared the first three of those tests: Illinois, Kentucky, Missouri, Ohio and Pennsylvania. Illinois and Pennsylvania lost residents to other states and Kentucky lost payroll jobs, which left Missouri and Ohio.

The tie rule. Each state's figure is rounded to one decimal place, as shown in this guide, before it is compared with the national figure, and a tie does not count as a pass. That rule decided one state: Michigan passed every other second-route test, but its rental vacancy rate (5.7%) equals the national rate. The Bureau of Labor Statistics (BLS) judged the job changes in Ohio, Michigan, Indiana and Kentucky too small to be statistically significant, so treat the line between Ohio and its Midwestern neighbors as a close call.

The data behind each test

Each measure comes from a single source so the figures line up across states:

• Job growth: total nonfarm payroll jobs, August 2025 to August 2026, seasonally adjusted, from the BLS state release of September 18, 2026 (August 2026 figures are preliminary). U.S.: about 0.3%, from the separate BLS national payroll series. The state figures summed grew about 0.5%; that benchmark would remove North Dakota, Tennessee and Washington from the demand test but not change the shortlist, since none of them passed the price test.
• Population and migration: July 1, 2024, to July 1, 2025, including net domestic migration (people moving in from other states minus people leaving for them), from the Census Bureau's Vintage 2025 estimates. U.S.: +0.5%.
• New supply: housing units permitted in 2025 per 1,000 residents, from the Census Building Permits Survey. U.S.: 4.2.
• Price-to-rent ratio: median value of owner-occupied homes divided by 12 months of median gross rent (rent plus tenant-paid utilities), from the 2024 American Community Survey (ACS) 1-year estimates. U.S.: 20.2. At a ratio of 18, a year of rent equals about 5.6% of the home's value before any expenses; at 20.2, just under 5%.
• Rental vacancy: ACS 2024, same table. U.S.: 5.7%.
• Property tax: median taxes paid divided by median value for owner-occupied homes, an approximate effective rate, from ACS 2024 table B25103. U.S.: 0.89%.
• Insurance: average premium for the standard HO-3 homeowners policy, from the National Association of Insurance Commissioners' (NAIC) report on 2023 data, published July 2026. Countrywide: $1,737.
• Rent trend: Zillow's Observed Rent Index, August 2025 to August 2026, used in the metro table further down. U.S.: +2.5%.
• Law: each finalist's statutes on local rent control, notice for unpaid rent and security deposit caps.

Limits of the data

The ACS figures are from 2024 because the Census Bureau has delayed its 2025 one-year release (its August 2026 advisory said the date was still being determined), and the insurance figures are from 2023; premiums have moved since. Many state job changes are small enough to be statistical noise: BLS counted only eight states with statistically significant over-the-year gains, four of them on this list (Texas, North Carolina, South Carolina and Missouri).

The Census Bureau's quarterly Housing Vacancy Survey has newer state rental vacancy rates, but state margins of error are often 2 to 3 percentage points, so it served only as a cross-check against its own national rate, which runs higher (7.3% in the second quarter of 2026, according to the latest release). It agreed with the ACS that vacancy is high in Texas, South Carolina and Alabama (9% or more in both of the first two quarters of 2026) and low in Ohio (6.6% and 5.4%), but not on Missouri, as its section explains.

The seven states at a glance

How to read these: the price-to-rent ratio is a state-level relative of the gross rent multiplier, good for comparing states but too blunt to underwrite a deal (owner-occupied and rented homes differ in size and type). ACS figures are survey estimates, so differences of a few tenths are within the margin of error. The tax column describes owner-occupied homes; several states tax rentals more heavily, as the state sections explain. Landlords usually buy a landlord (dwelling) policy, not an HO-3, and the NAIC report has no landlord-policy average, so read the HO-3 column as a guide to relative insurance costs, not a quote.

Landlord-tenant rules, verified

"Landlord-friendly" is a label, not a law. These are the three rules checked in each state's statutes in October 2026. Notice periods are statutory minimums; court schedules add more time, and leases can change some terms where the statute allows it.

Three limits on what this table tells you. First, barring rent control does not stop cities from enforcing housing codes or running their own registration and inspection programs, so check the city as well as the state. Second, federal rules can lengthen the timeline for some properties: under the CARES Act, 15 U.S.C. § 9058(c), a landlord of a "covered dwelling," which includes properties with certain federally backed mortgages or in certain federal housing programs, may not require a tenant to vacate until 30 days after a notice to vacate. Since January 1, 2026, Texas lets a landlord who gave the state notice file the eviction case without waiting out that federal period, but the writ of possession can't be served until it has run (Prop. Code § 24.005(c-1)). Third, statutes change. Confirm the current rules with a local real estate attorney before you buy and before you file anything.

The Southeast: North Carolina, South Carolina and Alabama

North Carolina

The case. North Carolina added 65,600 payroll jobs (+1.3%) in the year to August 2026 and drew more net domestic migrants than any other state (84,064) in the year to July 2025. Its owner-occupied effective property tax rate (0.61%) is well under the national 0.89%.

The catch. Builders noticed the demand too: North Carolina permitted 7.7 housing units per 1,000 residents in 2025, the third-highest rate in the country, and its 2024 rental vacancy rate (7.4%) was already well above the national figure. In Zillow's data, Raleigh rents rose only 0.8% over the past year. The statewide price-to-rent ratio is slightly above the national level, so the rent-to-price math is thinner than in Alabama or Oklahoma.

Investor fit. Investors who prioritize population and job growth and accept thinner initial cash flow than in the cheapest markets.

Markets worth researching. Greensboro–High Point and Fayetteville (lower value-to-rent ratios than Charlotte or Raleigh in Zillow's data), Charlotte, and Raleigh-Durham. The Charlotte metro extends into South Carolina, where different laws and tax rules apply.

South Carolina

The case. South Carolina was the nation's fastest-growing state in the year to July 2025, up 1.5%, driven by net domestic migration of 66,622, according to the Census Bureau. That is about 12 net movers from other states per 1,000 residents, the highest rate of any state. Payroll jobs rose 1.6%, tied with Louisiana and New Mexico for the fastest rate.

The catch. South Carolina permitted 8.2 units per 1,000 residents in 2025, second only to Idaho, and its 7.9% rental vacancy rate was among the highest in the country. The low 0.45% tax figure is misleading for investors: under S.C. Code § 12-43-220, an owner's legal residence is assessed at 4% of fair market value while other real property, including rentals, is assessed at 6%, and the same section ties the legal-residence classification to an exemption from school operating taxes. At the same millage, a rental's bill is 1.5 times an owner-occupant's before that school exemption widens the gap further.

Investor fit. Growth-focused investors who will underwrite taxes at the 6% ratio and compete with new construction for tenants.

Markets worth researching. Columbia and Spartanburg (below the national value-to-rent ratio in Zillow's data), Greenville, and Charleston, which is pricier and carries coastal insurance and flood questions.

Alabama

The case. Alabama has one of the lowest price-to-rent ratios in the country (18.1) and the second-lowest owner-occupied effective property tax rate (0.38%, behind Hawaii). Payroll jobs rose 1.1%, and the Census Bureau noted that Alabama's net domestic migration (23,358) exceeded Florida's (22,517). New construction is modest at 3.7 units per 1,000 residents.

The catch. That low tax rate belongs to owner-occupants. Ala. Code § 40-8-1 assesses property used by the owner as a single-family dwelling at 10% of market value, while property not otherwise classified, which generally includes rentals, is assessed at 20%, so at the same millage a landlord's bill is about double. Rental vacancy (7.6%) and the average HO-3 premium ($1,906) are both above the national figures, and BLS did not count Alabama's job gain as statistically significant.

Investor fit. Cash-flow-focused investors comfortable with lower price points and mid-size metros, who will budget taxes at the rental assessment rate.

Markets worth researching. Birmingham, Huntsville (higher prices relative to rent), Montgomery and Mobile (low ratios; Mobile sits on the Gulf Coast, so price wind coverage and flood risk early).

Lower prices, higher carrying costs: Texas and Oklahoma

Texas

The case. Texas added 159,400 payroll jobs (+1.1%) in the year to August 2026, more than any other state, and gained 391,243 residents (+1.2%) in the year to July 2025. Its price-to-rent ratio of 17.7 is among the five lowest in the country, and it has no state individual income tax.

The catch. Carrying costs come first. The owner-occupied effective property tax rate (1.31%) is the eighth-highest in the country, and the average HO-3 premium ($2,864) is the second-highest, behind only Louisiana. That tax rate also understates a landlord's bill: school districts must exempt $140,000 of a residence homestead's value, and only an owner's principal residence qualifies (Texas Comptroller), so a rental pays school taxes on its full appraised value. At the state's median owner-occupied value ($313,200), the exemption shields about 45% of the home's value from school taxes.

The market is also softer. Texas's 2024 ACS rental vacancy rate (8.5%) was essentially tied with Florida's for the highest in the country, it permitted 6.6 units per 1,000 residents in 2025, and Zillow's statewide typical home value fell 1.6% between August 2025 and August 2026. Net domestic migration has cooled, from 218,840 in the year to July 2022 to 67,299 in the year to July 2025. One sign of easing supply: permits for January through August 2026 ran 7.5% below the same months of 2025.

Investor fit. Investors with healthy reserves who underwrite taxes and insurance from actual quotes and the full non-homestead tax rate, and who can use a softer market to negotiate. It's a hard place for a thin-margin first deal.

Markets worth researching. San Antonio, Houston (check flood zones property by property), Dallas–Fort Worth and El Paso (the lowest price-to-rent ratio of the Texas metros in the table below). Austin shows the risk of buying on past appreciation, as covered later.

Oklahoma

The case. Oklahoma's price-to-rent ratio (17.7) is essentially the same as Texas's and among the lowest in the country, new construction is moderate (3.8 units per 1,000 residents), and rental vacancy (5.9%) is close to the national rate. Jobs, population and net domestic migration all grew.

The catch. Insurance. Oklahoma's average HO-3 premium ($2,486) was the fifth-highest in the NAIC's 2023 data, and because homes cost less there, it weighs even more against value: about 1.1% of the median owner-occupied home value, against about 0.9% in Texas. Roof age and coverage terms matter more here than in most states. The job gain was not statistically significant.

Investor fit. Cash-flow investors who want low entry prices and will budget conservatively for insurance and roof replacement.

Markets worth researching. Oklahoma City and Tulsa.

Steadier Midwest options: Missouri and Ohio

Missouri

The case. Missouri added 34,100 payroll jobs (+1.1%), while new construction stayed low at 2.8 units per 1,000 residents, about two-thirds of the national rate. The owner-occupied tax rate (0.79%) and average HO-3 premium ($1,589) are both below average. Besides barring local rent control, RSMo 441.043 stops cities and counties from limiting security deposits or requiring landlords to accept housing-assistance income.

The catch. Population grew only 0.4%, below the national rate, and the price-to-rent ratio (19.9) is close to the national level, so the statewide numbers favor stability over high yields. Vacancy is uncertain: the 2024 ACS put Missouri's rental vacancy (5.1%) below the national figure, but the quarterly survey put it at 9.1% and 9.6% in the first two quarters of 2026, above the national rate as in every quarter of 2025, so check vacancy in the specific metro and neighborhood. Both big metros cross state lines: much of metro Kansas City is in Kansas and part of metro St. Louis is in Illinois, where different landlord-tenant laws and property taxes apply.

Investor fit. Investors who want moderate growth with less new-construction competition, and who will learn the rules on the side of the state line they buy on.

Markets worth researching. Kansas City, St. Louis and Springfield. In episode 574, Matt Bowles discusses how investors from expensive coastal markets use price-to-rent ratios in markets such as Kansas City, St. Louis, Cleveland and Indianapolis, and stresses making money when you buy rather than speculating on future appreciation.

Ohio

The case. Ohio's 2024 rental vacancy rate (4.8%) is the lowest of the seven, and the newer quarterly data agree. New construction is low (2.8 units per 1,000 residents), the average HO-3 premium ($1,116) is the sixth-lowest in the country, and the price-to-rent ratio is 18.3. Net domestic migration turned positive in the year to July 2025 (+11,926) after net losses in three of the previous four years.

The catch. Growth is slow: payroll jobs rose 0.2% and population 0.3%, both below the national rate, and the job change was not statistically significant. The owner-occupied effective property tax rate (1.22%) is the twelfth-highest in the country. Ohio sets no deposit cap, but landlords owe 5% annual interest on the part of a deposit above $50 or one month's rent, whichever is greater, if the tenant stays six months or more (R.C. 5321.16).

Investor fit. Investors focused on cash flow and low vacancy who are comfortable with slow growth and modest appreciation expectations.

Markets worth researching. Columbus, Cincinnati (the metro extends into Kentucky and Indiana), Cleveland, Akron and Toledo.

Why state averages can mislead

A state's median hides cities, neighborhoods and individual houses that behave very differently, as Zillow's metro data below shows. Zillow's typical home value (ZHVI) and typical rent (ZORI) describe the middle of each market (the 35th to 65th percentile), and ZORI measures market-rate rents, so these ratios run lower than the ACS ratio above and should not be compared with it. The value series covers single-family homes, condos and co-ops, while this rent series also includes apartments in buildings with five or more units, so treat the ratios as a rough guide to single-family rentals, not underwriting figures.

Among the Texas metros in the table, the ratio runs from 12.8 in El Paso to 21.5 in Austin, and rents fell 1.3% in San Antonio while they rose 3.2% in El Paso. Inside North Carolina, Raleigh's ratio is more than a third higher than Greensboro's. The same spread repeats at the neighborhood and street level, which no state table can show. Taxes and insurance vary just as much: county, city and school district rates differ, many jurisdictions reassess after a sale, and roof age, construction, claims history and flood zone can move a premium far from the state average. Price both for the specific property, as the example further down shows.

Past appreciation is not a forecast

Austin shows why. Zillow's typical home value for the Austin metro rose 78.0% from August 2019 to its June 2022 peak, then fell 26.8% by August 2026, even though Texas added more jobs than any other state in the latest year. Someone who bought in August 2019 is up 30.3% in nominal terms, about the same as consumer price inflation over those seven years (+30.6%, according to the BLS consumer price index), so roughly flat after inflation and before selling costs. A buyer who assumed the 2019–2022 pace would continue is far behind. That's one reason this shortlist leans on rent, vacancy and costs rather than recent price gains: cash flow you can measure today is a firmer basis than growth you hope for.

What taxes and insurance do to the math

A low purchase price only helps if fixed costs don't eat the rent.

Hypothetical example: same house, same rent, different carrying costs

Assume two identical single-family rentals, each bought for $250,000 and rented for $1,500 a month ($18,000 a year), a value-to-rent ratio of about 13.9, similar to the cheaper metros in the Zillow table. Every other cost is the same. House A's property tax works out to 0.6% of value and its landlord policy costs $1,400 a year; House B's tax works out to 1.6% of value and its insurance costs $2,800.

• House A: tax $250,000 × 0.6% = $1,500; plus insurance $1,400 = $2,900 a year, or 16.1% of gross rent.
• House B: tax $250,000 × 1.6% = $4,000; plus insurance $2,800 = $6,800 a year, or 37.8% of gross rent.

The difference is $3,900 a year, or $325 a month (about 22% of the rent), before vacancy, repairs, management or the mortgage: often enough to decide whether a deal cash flows at all. The rates are illustrative, not quotes for any state. Management, repairs, turnover and other operating expenses weren't compared across states because they depend so heavily on the property and the people running it; get local quotes.

State income tax follows the property, too. A state that taxes personal income generally taxes rental income from property there even if you live elsewhere; North Carolina, for example, counts income from real property in the state as North Carolina income that nonresidents must report once their total gross income exceeds the state's filing threshold (N.C. Department of Revenue). Texas has no individual income tax. For 2026, the top rates in the other six are 2.75% in Ohio, 3.99% in North Carolina, 4.5% in Oklahoma, 4.7% in Missouri and 5% in Alabama, according to the Tax Foundation, and 5.21% in South Carolina, which moved to two brackets for tax year 2026 (South Carolina Department of Revenue). Depreciation and other deductions can shrink the rental income that's taxed; see our guide to the tax benefits of real estate investing.

States that just missed

• Florida passed the demand and entry-price tests, and its costs look a lot like Texas's: the third-highest average HO-3 premium ($2,779), rental vacancy (8.4%) essentially tied with Texas for the highest, and falling statewide values. What kept it off the list is that its demand is fading faster and it builds more. Payroll growth (+0.6%) was about half of Texas's; net domestic migration fell 93% between the years to July 2022 and July 2025 (from 310,892 to 22,517), the steepest decline among the 15 states that passed the demand test; and it permitted 7.6 units per 1,000 residents in 2025, the fourth-highest rate (Texas: 6.6). Its permits for January through August 2026 fell 11.2% from a year earlier (Texas: 7.5%), so supply is easing there too, but from a higher level.
• Arkansas came closest. It passed every data test, and its numbers resemble Oklahoma's (price-to-rent 18.3, jobs +0.6%, population +0.6%) with lower property tax (0.52% against 0.75%) and a lower average HO-3 premium ($1,870 against $2,486), though rental vacancy (6.0%) and new construction (5.0 units per 1,000 residents) run a little above the national rates. It is an alternate rather than a pick because its current deposit, notice and rent-control rules could not be verified against the official code; the Attorney General's landlord-tenant summary is a starting point but is undated. Little Rock and Northwest Arkansas are worth researching; confirm those rules with a local attorney before buying.
• Tennessee has strong demand (population +0.9%, net domestic migration +42,389), a low owner-occupied tax rate (0.45%) and no state income tax, but its statewide price-to-rent ratio (21.6) is above the national 20.2. In Zillow's metro data (U.S. 15.8), Memphis (14.6) prices very differently from Nashville (20.8).
• Arizona pairs growth with low taxes (0.43%) and a below-average HO-3 premium ($1,194), but its price-to-rent ratio is 21.2 and it permitted 6.8 housing units per 1,000 residents in 2025, including 2.2 per 1,000 in buildings of five or more units, against 1.4 nationally.
• Georgia and Indiana both grew in population, but payroll jobs were flat to down (−0.1% and −0.5%; BLS counted neither change as statistically significant). Indiana is close to Ohio: it has faster population growth (+0.6% against +0.3%) and a lower owner-occupied property tax (0.74% against 1.22%), while Ohio has lower rental vacancy (4.8% against 5.2%) and lighter new construction (2.8 units per 1,000 residents against Indiana's 4.2, which ties the national rate).
• Michigan missed the second route only on the vacancy tie, and the quarterly survey had it below the national rate in the first half of 2026 (6.7% and 6.0% against 7.3%). Otherwise it resembles Ohio: price-to-rent 18.1, 2.3 units permitted per 1,000 residents, jobs +0.2%, population +0.3%, net domestic migration +1,796, property tax 1.18% (Ohio: 1.22%) and an average HO-3 premium of $1,110 (Ohio: $1,116). If you're looking at the Midwest, compare Ohio with Michigan and Indiana.
• Louisiana tied for the fastest job growth (+1.6%), but its population barely grew (+0.1%), more residents left for other states than arrived, and it has the highest average HO-3 premium in the country ($3,027).

Neighborhood and property due-diligence checklist

A state shortlist only tells you where to start looking. These due diligence checks decide whether a specific deal works.

Neighborhood

• Rents and vacancy for comparable homes. Check current listings and how long similar rentals sit, and ask local property managers. In episode 568, Dustin Heiner describes contacting property managers before buying to verify rents, vacancy and neighborhood desirability, and asking them: "If you were investing your own money in this city, where would you buy?"
• Who lives there and who owns. In episode 631, Yuval Golan describes his own screens: high-median-income areas with 70 to 80 percent owner-occupancy, vacancy under 10 percent and post-1980 construction. His own state picks, Florida, Texas, Georgia and Arizona, show that experienced investors weigh the trade-offs above differently. Set your own thresholds before you start shopping.
• Jobs within commuting distance. Which employers anchor the area, and how dependent is it on one of them?
• New supply nearby. Apartment and build-to-rent projects under construction within a few miles compete directly for your tenants.
• Safety and schools. Use local police data and the state's school report cards rather than opinions.
• City rules. Rental registration, inspections, licensing and occupancy limits.

Property

• The tax bill you will pay as a non-owner-occupant, including any reassessment after the sale. Ask the county, and don't rely on the seller's current bill.
• A landlord insurance quote, the flood zone (look it up on FEMA's Flood Map Service Center) and the age of the roof, before you make an offer.
• A professional inspection of the roof, foundation, plumbing, electrical and HVAC, priced into a capital expenditure reserve.
• Lead paint duties for housing built before 1978: federal rules require landlords to disclose known lead-based paint hazards and give tenants an EPA pamphlet before the lease (EPA).
• HOA restrictions on renting, if the home is in an association.
• A full pro forma: rent, a vacancy allowance, management, maintenance, capital reserves, taxes, insurance and debt service, so you can see net operating income and cash flow before you commit.

If you're buying far from home, you'll lean on local people for most of this. The guide to active vs. passive real estate investing covers what a property manager typically handles and what stays with you as the owner.

FAQ

What is the best state to buy rental property in 2026?

There isn't one. Growth-focused buyers may lean toward the Carolinas, cash-flow buyers toward Alabama, Oklahoma or Ohio, and investors with deep reserves toward a softer Texas market. The best state for you is one where the specific property's numbers work after realistic taxes, insurance and vacancy.

Which state is the most landlord-friendly?

There's no official ranking. The label usually means some combination of no local rent control, short notice periods before an eviction filing, and few limits on deposits or fees. For contrast, California, Oregon and Washington cap annual rent increases for many units statewide (see the California Attorney General's summary, ORS 90.323 and RCW 59.18.700). But no label changes a court's calendar, a city's housing code, federal notice rules for some properties or the cost of turnover, so check the specific statutes, as in the table above.

Is it better to invest in your own state or out of state?

Investing locally lets you see properties, check neighborhoods and supervise work yourself, which matters most on your first deal. Investing out of state can get you a lower price-to-rent ratio, but you depend on property managers, agents and contractors you can't easily check. If your home market doesn't work on the numbers, a nearby state on this list is often easier to manage than a distant one.

Is a high-growth state better than a cash-flow state?

They carry different risks. Fast-growing states attract builders, and new supply can hold back rents until it fills; Texas and South Carolina currently pair heavy permitting with above-average vacancy. Slower-growing, low-supply states such as Ohio and Missouri face less new competition but also have less new demand to absorb mistakes. Decide which risk you can live with, then check whether the specific deal still works if growth disappoints.

Hearing how working investors choose markets can sharpen your own screens. Browse the conversations in The Real Estate Investing Club Podcast archive, or bring your market questions to the free community on Skool.

This article is for educational purposes only and is not investment, legal, tax or insurance advice. Figures reflect the data periods stated (most recently August 2026) and will change; statutes were checked in October 2026 and can be amended. Recheck current figures and get advice from qualified local professionals before buying property or taking action against a tenant.

Sources

• U.S. Bureau of Labor Statistics, State Employment and Unemployment, August 2026 (released September 18, 2026), nonfarm payrolls by state, August 2025 to August 2026.
• U.S. Bureau of Labor Statistics, Total nonfarm employment, seasonally adjusted (CES0000000001), August 2025 and August 2026.
• U.S. Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers, all items, U.S. city average, not seasonally adjusted (CUUR0000SA0), August 2019 and August 2026.
• U.S. Census Bureau, Vintage 2025 population estimates press release (January 27, 2026) and state totals dataset NST-EST2025-ALLDATA, July 1, 2020 to July 1, 2025.
• U.S. Census Bureau, Building Permits Survey, state annual and year-to-date files (2025 annual; January to August 2025 and 2026).
• U.S. Census Bureau, American Community Survey 2024 1-year estimates, DP04 Selected Housing Characteristics and B25103 Median Real Estate Taxes Paid, by state.
• U.S. Census Bureau, media advisory on the 2025 ACS 1-year release (August 4, 2026).
• U.S. Census Bureau, Housing Vacancy Survey: rental vacancy rates by state (first quarter 2025 to second quarter 2026), quarterly national rental vacancy rates and the second quarter 2026 release.
• National Association of Insurance Commissioners, Dwelling Fire, Homeowners Owner-Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner's Insurance Report: Data for 2023 (July 2026), Table 4 and policy-form definitions.
• Zillow, Zillow Home Value Index and Zillow Observed Rent Index, state and metro series, August 2025 and August 2026 (Austin series from August 2019).
• Texas Comptroller of Public Accounts, Property Tax Exemptions (residence homestead exemption, Tax Code § 11.13(b)), accessed October 2026.
• Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (February 17, 2026).
• South Carolina Department of Revenue, Individual Income Tax: tax year rates, accessed October 2026, and SC Information Letter #26-20, Individual Income Tax Reform (August 31, 2026).
• North Carolina Department of Revenue, Nonresidents and Part-Year Residents, accessed October 2026.
• North Carolina General Statutes § 42-14.1, § 42-3, § 42-26 and § 42-51, North Carolina General Assembly.
• South Carolina Code of Laws § 27-39-60, §§ 27-40-410 and 27-40-710 and § 12-43-220, South Carolina Legislature.
• Code of Alabama § 11-80-8.1, § 35-9A-201, § 35-9A-421 and § 40-8-1, Alabama Legislature.
• Texas Local Government Code § 214.902 and Property Code § 24.005 (as amended by S.B. 38, effective January 1, 2026) and Chapter 92, Texas Legislature.
• Oklahoma Statutes, Title 11 (§ 14-101.1) and Title 41 (§§ 115 and 131), Oklahoma Legislature.
• Revised Statutes of Missouri 441.043, 535.020 and 535.300, Missouri Revisor of Statutes.
• Ohio Revised Code 5321.19, 5321.16 and 1923.04.
• 15 U.S.C. § 9058 (CARES Act notice to vacate), Legal Information Institute.
• California Attorney General, Tenants' Rights (Tenant Protection Act, Civil Code § 1947.12); Oregon Revised Statutes chapter 90 (§ 90.323); Revised Code of Washington 59.18.700; all accessed October 2026.
• Arkansas Attorney General, Landlord and Tenant Rights (undated; accessed October 2026).
• U.S. Environmental Protection Agency, Real Estate Disclosures About Potential Lead Hazards; FEMA, Flood Map Service Center.