Top Metro Areas for Landlords: Rents and Home Prices Projected to Grow Through 2025

24 Metros with Rising Rents

For landlords, investors, and property managers eyeing opportunities, recent data from Zillow through May 2025 highlights 24 promising U.S. markets where rents are climbing alongside positive housing market forecasts. Notably, the list identifies metros where both rental and home price growth signal healthy market dynamics and potential profitability.

Topping the list, Syracuse, NY, and Rochester, NY, demonstrate robust year-over-year rent increases of 6.2% and 5.2%, respectively. Home prices in these cities are forecasted to outpace rental growth, signaling stronger appreciation prospects. Investors in these markets may find themselves benefiting from immediate rental income boosts and favorable long-term equity gains.

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SFR Market Cools but Stays Hot: Investors Lean In as Rents Outpace Inflation

Single family rental properties returns outpacing inflation

After a stretch of white-hot growth, the single-family rental (SFR) market seems to have settled into a more balanced—but still very active—phase. Arbor’s Q2 2025 Single-Family Rental Investment Trends Report (see complete report below) paints a picture of a sector adapting to higher interest rates, tenant turnover challenges, and a still-constrained for-sale housing market, but doing so with impressive resilience.

While overall rent growth has slowed from the post-pandemic highs, it continues to outpace inflation. Through March 2025, national SFR rents were up 4.1% year-over-year, just a hair below the 2016-2019 average of 4.4%, according to Zillow’s Observed Rent Index. Some metros are outperforming the national average by a wide margin—Indianapolis led the pack with 6.3% annual rent growth, followed closely by St. Louis (6.1%) and Kansas City (5.7%).

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Rent Payments Dip Again in June: Independent Landlords See Lowest Full-Pay Rate Since 2021

Landlord trying to manage falling on time rental payments

If you’re an independent landlord, or you represent one, June’s rent payment numbers might catch your attention.

According to Chandan Economics’ latest monthly tracker, only 84.3% of independently managed rental units were paid on time last month. That’s down 85 basis points from May and marks a 23-month streak of year-over-year declines in on-time payment rates. The report, based on data from RentRedi covering 73,502 units, shows a clear downward trend that landlords can’t afford to ignore.

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Zombie Homes Quietly Rise as Vacancy Rate Holds Steady Nationwide

Zombie Foreclosures

Despite a steady nationwide vacancy rate, a subtle but growing trend in so-called “zombie” homes is worth watching. According to ATTOM’s latest data, 1.3% of all U.S. homes remain vacant—a figure that’s held remarkably steady for over three years. But while most markets are stable, the number of zombie foreclosures—homes that are vacant and in the foreclosure process—has crept up year-over-year.

Zombie properties still make up a small portion of the market (just 3.3% of homes in foreclosure), but they’re up from 2.9% this time last year. That’s not enough to panic over, but it does signal some stress beneath the surface, especially in pockets of the Midwest and South. Metro areas like Peoria, Cleveland, and Toledo are seeing double-digit percentages of pre-foreclosure homes sitting vacant—raising concerns about local property values and neighborhood stability.

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Rental Payments Rebound: April Report Shows Gains for Small Landlords

On time rental payments

The latest Independent Landlord Rental Performance Report from Chandan Economics shows some encouraging news for small and mid-size residential investors: on-time rent payments improved again in April. Nationally, 86.3% of tenants in independently operated rentals paid on time, up 45 basis points from March and slightly ahead of last year for the first time since mid-2023 . Seasonality—thanks in part to tax refunds—always gives March and April a boost, but this year’s gains feel a little more grounded, especially after nearly two years of steady slippage. The report also noted that while the full-payment forecast (which factors in late and expected late payments) dipped a hair to 95.5%, it’s still holding near a six-month high . For investors looking closely at portfolio health, that’s a good sign the tenant rent burden may be stabilizing, at least for now.Take a look at the interactive chart below showing on-time payment rates by property type. It breaks out single-family rentals, small 2–4 unit properties, and larger multifamily buildings separately—and you’ll see small properties are leading the pack. In April, 2–4 unit rentals had the highest on-time payment rate at 87.0%, slightly edging out single-family homes (86.5%) and larger multifamily buildings (86.2%) . If you’re investing in smaller properties, this trend reinforces why that segment often delivers more reliable cash flow, especially in markets with steady local economies. While regional performance still vari...

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Renters Are In It for the Long Haul—Why That’s Good News for Investors

Renters choosing to rent instead of buy...by choice and not forced by finances

Knightvest Capital’s 2024–2025 Multifamily Renter Sentiment Report highlights a continued shift in attitudes around homeownership—and it’s a shift that works in favor of rental property investors. According to the report, nearly half of renters surveyed (48%) are choosing to rent rather than feeling forced into it, and 42% say they now view renting as a long-term living arrangement.

Affordability still tops the list of reasons people rent, with 63% citing the high cost of buying a home. But other factors are playing a growing role, including reduced maintenance responsibilities (59%) and flexibility to relocate (34%). Interestingly, about one-third of those surveyed previously owned a home, which reinforces that the preference for renting isn’t always about cost—it’s increasingly a lifestyle choice.

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Flood Insurance Costs Rising for Landlords: How FEMA’s New Rules Affect Your Bottom Line

Flood Insurance Costs - Landlords

Flood risk is becoming a bigger concern for landlords and rental property owners nationwide. With recent shifts in FEMA policies and insurance pricing, understanding your exposure—and your options—is critical. Let’s dive straight into the facts, no fluff.

FEMA recently introduced Risk Rating 2.0, significantly reshaping flood insurance costs for landlords:

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Instantly Evaluate Rental Deals with this Powerful Calculator

LandlordCalc.com Rental Property Calculator

Here’s a great tool every serious rental property investor should check out: the Rental Property Calculator from LandlordCalc.com. I built this specifically to give investors a quick, accurate, and actionable financial snapshot of their potential investments. Whether you’re just getting started or adding to your portfolio, this calculator helps you evaluate deals fast by showing crucial metrics like monthly cash flow, cash-on-cash return, cap rate, and your initial investment needed.

Using it is simple—just enter basic property details such as the purchase price, monthly rent, and financing information like down payment and interest rate. It also factors in essential costs that investors often overlook, including vacancy rates, repairs, capital expenditures, and property management fees. Immediately, you’ll see detailed results and an easy-to-understand breakdown of both fixed and variable expenses. It even calculates your expected cash recovery period, letting you know exactly when your investment will pay back your initial outlay.

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