Top 9 CASH FLOW Real Estate Markets of 2023

What are the top cash flow real estate markets? Where can rental property investors get the highest rent for the lowest purchase price? Dave Meyer, VP of Data and Analytics at BiggerPockets and host of the “On the Market” podcast, has compiled a list of some of America’s best cash flow rental markets so you can make your dollar go further on your next investment. And even with rents starting to soften and home prices remaining high, some markets still hit the one percent rule that was thought to have disappeared years ago. So, if you’re cruising’ for cash flow, stick around!

Real estate investors nationwide have been searching for cash flow since the wild price appreciation of 2020 started. Unfortunately, with home prices skyrocketing and rents failing to keep pace, many would-be investors have given up on real estate, mistakenly thinking there is no cash flow to be found. But, even if you can't find cash flow in your home market, there are still MULTIPLE markets across the country that can produce crazy cash flow at home prices under two-hundred thousand dollars!

Are you investing in any of the markets on Dave’s list? Do you have any “hidden gem” markets that aren’t on the top lists? Let us know in the comments below!

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00:00 Where to Find Cash Flow
01:20 Why is Cash Flow SO Hard to Find?
04:49 TOP 9 Cities for Cash Flow
09:36 BEFORE You Buy

[steveelling]

Dave, remember that video you posted last year about how your rental purchases were based almost solely on price appreciation and how you personally believed that cash flow was not important? 🤕

[Mecknificent]

9. Rochester, New York
8. Little Rock, Arkansas
7. Milwaukee, Wisconsin
6. Dayton, Ohio
5. Philadelphia, Pennsylvania
4. Birmingham, Alabama
3. Cleveland, Ohio
2. Memphis, Tennessee
1. Baltimore, Maryland

Good Rent to price ratios. Though be cautious... Some markets are decreasing in purchase price therefore potentially decreasing profitability.

[robwithrbk]

Commercial real estate broker here. My specialty is 5+ unit multifamly in San Diego and West Palm Beach. Generally speaking you're going to have the best cash flow in the weakest appreciation markets and these are also tougher tenant profile. So, you haven to decide how you want to make money in this business. I understand RTP but my industry is driven mostly off GRM (gross rent multiplier), cap rates, cash on cash, IRR etc. I think RTP is a great way to get familiar with rent metrics, but long term I strongly suggest you all become more familiar with standard industry metrics for underwriting.

[brianwillett]

Great stuff as always Dave. How does the Lousiville, KY market look?

[jaypo]

@Dave Meyer Hi Dave thank you for all the great data content! Can you please start including Greater Palm Springs/Coachella Valley area on your data. It is a large market of 500k+ full time residents and over 1M in season. You always post lists of data and it will have Riverside or San Diego but not the Desert region market. It would be greatly appreciated!!

[BrettMaverick]

Just checked out some properties in Baltimore on Zillow. Looks like many of them barely hit the 1% rule... Am I missing something?

[KiyosakiSays]

“Cash flow tells the story of how a person handles money.” – Robert Kiyosaki

[MitchDurfeeOfficial]

These are based on rent to price ratios... but tenant rights vs landlord rights and market appreciation is way more important to me!

[dfrank]

Great analysis, I’m thinking to move and buy at Little Rock I visit the city last year it was clean and nice. Thanks

[cromleyluxrecorperation]

Memphis Tennessee, Birmingham, Alabama, Baltimore, Maryland, had no median sales price posted
Any tricks and tips you can give on how to analyze the other criteria you mentioned would be welcomed

[debbiemillermoss]

Can you please analyze the Reno, NV market? Thank you in advance

[nickyb-ffme]

Where are you getting these entry point prices from?

[mandyrose]

Can you analyze myrtle beach SC? Thanks

[danas.]

Could you please analyze Knoxville Tennessee

[DatsDoodoBaby]

There’s a market I was looking at, duplex $65k, mortgage under 500 a month rent in that area could get about $800-$900 a unit crime is average, but I see the poverty rate is 27% and population is decreasing(its only 20k) The numbers make it tempting because one unit can more than cover mortgage and all expenses and the other can be straight cashflow, and as I ran numbers in a bunch of markets these were the best by far, nearly 2.8% rent to price ratio. I just don’t know if it would wise to enter a market with that level of population, that poverty rate, and in an area I don’t foresee growth as my first purchase.

[jimbofiveo]

why did you leave out #10 on the list from the website - Detroit Michigan?

[taurus]

Wilmington NC is grossly overlooked. Even though 1% rule doesn’t apply here, it’s an excellent and very secure rental market.

[nicogarcia]

would love a deeper analysis on the baltimore market in 2023. I know from the numbers provided its a great cash flow city, but would like a overall market analysis on baltimore as a market. I like in md about an hour out an I have been intrigued by baltimore market but I know it really depends on where in baltimore city you invest.

[karenscookingkorner]

I lived in Rochester for 56 years, I moved to Florida a year and half ago. I must say I was very surprised to hear Rochester on the list! Super interesting!!

[frenchyalicea]

Im proud to say i purchased 2 properties in '08 in one of the places mentioned in the list and my price to rent ratio is 2.55%, no complaints here!