The 10 Best Cities for First-Time Real Estate Investors

Core Insights - Residential real estate investors have experienced strong returns this decade due to rising home values and rental rates, with average U.S. home prices increasing by 54.9% from Q1 2020 to Q1 2025 and annual rent per square foot rising over 47% since 2020 [1][2] Investment Performance - Investors in residential real estate have enjoyed annual returns of 9% or higher on top-performing properties [2] Market Analysis - Florida has emerged as a leading market for first-time real estate investors, with five of the top ten cities for investment located in the state, based on factors like affordability, rental income potential, landlord-friendly laws, and returns on investment [4][5] Top Investment Cities - The analysis identified the following cities as the best for first-time investors: - Port St. Lucie, Florida - Cape Coral, Florida - Cleveland, Ohio - Garland, Texas - Miami, Florida - Jacksonville, Florida - St. Petersburg, Florida - Columbus, Ohio [5][6][7][8][10][11][12][13][14] Financial Metrics - Key financial metrics for selected cities include: - Port St. Lucie: Average monthly rent $2,600, Median sale price $376,567, Gross rental yield 8.3% - Cape Coral: Average monthly rent $2,290, Median sale price $322,633, Gross rental yield 8.5% - Cleveland: Average monthly rent $1,200, Median sale price $100,333, Gross rental yield 14.4% - Garland: Average monthly rent $2,000, Median sale price $297,367, Gross rental yield 8.1% - Miami: Average monthly rent $3,000, Median sale price $508,167, Gross rental yield 6.1% - Jacksonville: Average monthly rent $1,600, Median sale price $270,167, Gross rental yield 7.1% - St. Petersburg: Average monthly rent $2,200, Median sale price $377,167, Gross rental yield 7.0% - Columbus: Average monthly rent $1,500, Median sale price $238,167, Gross rental yield 7.6% [9][14]