America's Highest Cash-Flow Rental Markets in 2026
Using real Zillow data, we ranked metros by estimated gross rental yield. The Midwest and South dominate — and the gap with coastal markets is stark.
By Leading Landlord Editorial · June 3, 2026
The highest-yield metros
We ranked metros by estimated gross rental yield — annualized typical rent divided by typical home value, using Zillow's ZHVI and ZORI data. The top of the list is dominated by affordable Midwest and Southern cities:
| Rank | Metro | Est. gross yield | Typical value |
|---|---|---|---|
| 1 | Detroit, MI | 20.7% | $77,000 |
| 2 | Cleveland, OH | 14.5% | $118,000 |
| 3 | Birmingham, AL | 11.3% | $138,000 |
| 4 | Memphis, TN | 10.2% | $148,000 |
| 5 | Philadelphia, PA | 9.1% | $234,000 |
| 6 | St. Louis, MO | 8.8% | $187,000 |
| 7 | Chicago, IL | 8.6% | $323,000 |
| 8 | Pittsburgh, PA | 7.8% | $241,000 |
| 9 | Milwaukee, WI | 7.7% | $226,000 |
| 10 | Indianapolis, IN | 7.1% | $232,000 |
Read this carefully: gross ≠ net
These are gross yields. They exclude property taxes, insurance, vacancy, maintenance, and management — all of which are proportionally higher in cheap markets. Detroit's 20%+ gross yield is real, but the net number after a rough tax bill, higher vacancy, and management is far lower. Treat gross yield as a screening metric, then run the full numbers.
The other end: appreciation markets
The lowest-yield metros are the expensive coastal and high-growth markets — Seattle (~3.0%), Los Angeles (~3.4%), Austin (~3.6%), and Denver (~4.0%). Investors there are betting on appreciation and leverage, not monthly cash flow.
Run your own numbers
Pick a market in the ZIP data explorer, then drop the figures into the cap-rate calculator to see the net picture for a specific deal.
This is general information, not legal advice. Laws change and vary by city and county — verify the current rules or consult a qualified professional before acting.
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