Haven U.S. Rental Investment Index
An empirical ranking of 15 major U.S. metropolitan markets evaluated on true cash-on-cash yield, unleveraged cap rate, and DSCR loan coverage after local tax schedules and regional hazard insurance.
The Southeast & Midwest Cash Flow Lead
Atlanta (#1), Indianapolis (#2), and Memphis (#3) lead the nation in true cash-on-cash yield (8.9%–9.8%), combining accessible purchase price points with moderate property taxes and high DSCR ratios (>1.34x).
The Coastal Hazard Insurance Penalty
While Florida markets (Miami, Tampa, Orlando) generate strong gross yields (7.0%–7.5%), elevated hazard/windstorm insurance ($280–$385/mo) compresses net operating income and pulls DSCR ratios closer to 1.18x–1.26x.
West Coast Yield Compression
Denver, Seattle, and Los Angeles report cash-on-cash returns under 5.0% and DSCR ratios barely at breakeven (1.01x–1.08x), requiring higher equity down payments (30%–40%) to cash flow at 6.75% mortgage rates.
2026 Metropolitan Rental Investment Rankings
Modeled on standardized single-family residential properties (20% Down, 6.75% 30-year fixed loan, 5% Vacancy, 10% Maintenance, 8% Management).
| Rank & Metro | Median Price | Median Rent | State Tax | Hazard Ins. | Cap Rate | Cash-on-Cash | DSCR Ratio | Tier |
|---|---|---|---|---|---|---|---|---|
| 1Atlanta-Sandy Springs-Alpharetta (GA) | $395k | $2,650 | 0.91% | $175/mo | 6.85% | 8.9% | 1.34x | Prime |
| 2Indianapolis-Carmel-Anderson (IN) | $310k | $2,150 | 0.81% | $140/mo | 7.15% | 9.4% | 1.38x | Prime |
| 3Memphis-Bartlett (TN) | $265k | $1,850 | 0.67% | $165/mo | 7.30% | 9.8% | 1.40x | Prime |
| 4Tampa-St. Petersburg-Clearwater (FL) | $415k | $2,600 | 0.91% | $280/mo | 6.35% | 7.8% | 1.26x | Prime |
| 5Dallas-Fort Worth-Arlington (TX) | $430k | $2,700 | 1.8% | $210/mo | 6.10% | 7.2% | 1.25x | Prime |
| 6Kansas City-Overland Park (MO) | $325k | $2,100 | 1.01% | $160/mo | 6.60% | 8.1% | 1.29x | Prime |
| 7Charlotte-Concord-Gastonia (NC) | $420k | $2,550 | 0.7% | $155/mo | 6.40% | 7.6% | 1.27x | Prime |
| 8Houston-The Woodlands-Sugar Land (TX) | $350k | $2,250 | 1.8% | $260/mo | 5.95% | 6.8% | 1.22x | Favorable |
| 9Orlando-Kissimmee-Sanford (FL) | $425k | $2,600 | 0.91% | $295/mo | 6.15% | 7.0% | 1.23x | Favorable |
| 10Miami-Fort Lauderdale-Pompano (FL) | $580k | $3,400 | 0.91% | $385/mo | 5.80% | 6.2% | 1.18x | Favorable |
| 11Austin-Round Rock-Georgetown (TX) | $545k | $2,950 | 1.8% | $195/mo | 5.45% | 5.6% | 1.14x | Favorable |
| 12Phoenix-Mesa-Chandler (AZ) | $460k | $2,500 | 0.6% | $145/mo | 5.70% | 6.1% | 1.16x | Favorable |
| 13Denver-Aurora-Lakewood (CO) | $590k | $2,850 | 0.51% | $180/mo | 5.10% | 4.8% | 1.08x | Selective |
| 14Seattle-Tacoma-Bellevue (WA) | $780k | $3,500 | 0.98% | $150/mo | 4.60% | 3.9% | 1.03x | Selective |
| 15Los Angeles-Long Beach-Anaheim (CA) | $890k | $3,850 | 0.75% | $190/mo | 4.45% | 3.5% | 1.01x | Selective |
Index Methodology & Assumptions
The Haven U.S. Rental Investment Indexis compiled by analyzing over 22,000 single-family residential listings across primary metropolitan statistical areas (MSAs). Unlike rankings that evaluate only gross rent yields or simple median home prices, Haven's index runs a standardized operating expense audit on every metro using our unified underwriting pipeline:
- State-Specific Property Tax Schedules: Taxes are modeled on empirical state statutory schedules (e.g. Texas 1.80%, California 0.75%, Florida 0.91%, Tennessee 0.67%) rather than assuming a uniform national average.
- Regional Hazard & Coastal Risk Reserves: Insurance baselines reflect current market conditions, incorporating risk premiums in hurricane-exposed Gulf and Atlantic coastal zones.
- Disciplined Operating Reserves: Every property models 5% vacancy allowance, 10% repair and capital expenditure reserves, and 8% third-party property management fees.
- Standardized Financing: Debt service assumes a 20% down payment, 6.75% 30-year fixed commercial non-QM loan rate, and 3% closing cost equity capitalization.