±¬ÁÏTV

- Price-to-rent ratio: 21.53
- Median sale price: $513,869
- Median annual rent: $23,868 ($1,989 per month)
- For-sale home inventory: 4,997

California is an expensive state in which to rent a home, . Cities in the Golden State occupy six slots on this list, so it’s worth considering investing in property in cities with high PTR ratios such as Sacramento. In the past year, home values in the metro area have climbed by more than 24.5%. If that trend continues, investment in the market could pay off in a big way.

- Price-to-rent ratio: 21.95
- Median sale price: $733,186
- Median annual rent: $33,408 ($2,784 per month)
- For-sale home inventory: 1,442

Ventura is home to Patagonia's headquarters, which makes sense considering the area is perfect for ranging from surfing and kayaking to golf and bird-watching. This oceanfront metro area includes and has a high PTR ratio and compared to California and the United States. Home values in Ventura have increased 24.2% in the past year.

- Price-to-rent ratio: 22.07
- Median sale price: $381,854
- Median annual rent: $17,304 ($1,442 per month)
- For-sale home inventory: 1,392

Ogden is located about 35 miles north of Salt Lake City and is known as a gateway town to the mountains within easy reach of . A century ago, Ogden was known for being the transfer point from the Central Pacific to the Union Pacific railroads. Today, Ogden’s Historic 25th Street is full of boutiques and cafes. After prohibition, it was taken over by the mob and has a fascinating past of .

- Price-to-rent ratio: 22.90
- Median sale price: $445,117
- Median annual rent: $19,440 ($1,620 per month)
- For-sale home inventory: 2,337

Typically a PTR ratio of 21 or higher is considered good for real estate investors who want to ensure cash flow properties always have a tenant. Boise is the largest city in Idaho, which is the second-fastest-growing state, according to the . Boise’s population is currently at an . Rent prices have increased , and only 1.4% of rental properties are currently vacant.

- Median sale price: $448,331
- Median annual rent: $19,104 ($1,592 per month)
- For-sale home inventory: 2,141

Fort Collins is home to Colorado State University and its more than , many of whom rent houses or apartments in town. Home prices have risen by more than $66,000 in the past year. With an influx in renters during the coronavirus, by the lack of available properties. With a perpetual source of tenants, Fort Collins is an ideal city for real estate investment.

- Price-to-rent ratio: 23.85
- Median sale price: $446,464
- Median annual rent: $18,720 ($1,560 per month)
- For-sale home inventory: 7,759

Austin is home to more than since the last census. Rents in the state capital are rebounding after a pandemic-induced slump. The mean rent is at , compared to a mean rent of $1,278 in July 2020. Austin is one of the hottest real estate markets in the country, with pricing for median housing increasing since June 2020.

- Price-to-rent ratio: 24.24
- Median sale price: $510,429
- Median annual rent: $21,060 ($1,755 per month)
- For-sale home inventory: 7,336

Denver has had a booming real estate market—and while it’s still a seller’s market, there are signs that it’s slowing down to a more manageable pace. The in July was up 20% compared to last July. Inventory of houses has increased somewhat since June, though not enough to . Denver has a highly educated workforce and designed to lure more tech-heavy companies to the area.

- Price-to-rent ratio: 24.65
- Median sale price: $436,962
- Median annual rent: $17,724 ($1,477 per month)
- For-sale home inventory: 2,556

Utah is the most youthful state in the nation, its population ranking first with a median age of . As younger people are , Utah may be a good place to purchase an investment property. Salt Lake City is on ’s list of places to buy a rental property, citing the 15% increase in home prices. While that might seem like a lot, it’s less than other cities that West Coast transplants are flocking to with high PTR ratios such as , or .

- Price-to-rent ratio: 24.72
- Median sale price: $478,823
- Median annual rent: $19,368 ($1,614 per month)
- For-sale home inventory: 7,011

Oregon has a 9% deficit of available housing, according to . Put in perspective, the lack of housing in Oregon is second only to Washington D.C., which has a 9.55% deficit. Portland’s high rents and high PTR ratio make it an attractive place for real estate investors looking for . The pandemic-induced eviction moratorium lifted at the end of July may help with landlords’ cash flow.

- Price-to-rent ratio: 25.00
- Median sale price: $430,141
- Median annual rent: $17,208 ($1,434 per month)
- For-sale home inventory: 1,650

Brigham Young University is located in Provo and has an entrepreneurial spirit as evidenced by the number of in town. In 2019, Provo had a very low , down from a peak of 7.65% in 2005. This suggests that landlords typically don’t struggle to find tenants, which is certainly aided by the student population. There are in Provo, making this an appealing market for investment.

- Price-to-rent ratio: 25.75
- Median sale price: $723,010
- Median annual rent: $28,080 ($2,340 per month)
- For-sale home inventory: 5,999

While average home prices in this Southern California real estate hotspot are high, investment can pay off for those who buy in San Diego.

The top neighborhoods for real estate investment include Ridgeview-Webster, Encanto, Nestor, and Emerald Hills, according to . California’s 2020 limits rent increases to 5% plus inflation annually. However, as home prices shot up , and with no indication of demand decreasing, buying in San Diego shows signs of being a great investment.

- Price-to-rent ratio: 26.88
- Median sale price: $616,198
- Median annual rent: $22,920 ($1,910 per month)
- For-sale home inventory: 9,389

Seattle homes have increased in value by 14.2% in the past year, according to . The housing market in Seattle is . Investors will be pleased to note that rental prices have risen to 5% below the rates before the coronavirus hit the country, which caused rentals to .

The trend of Seattle residents increasingly being more likely to rent than to buy is good news for real estate investors.

- Price-to-rent ratio: 27.31
- Median sale price: $799,262
- Median annual rent: $29,268 ($2,439 per month)
- For-sale home inventory: 20,734

The COVID-19 pandemic led to California’s first for the nation’s most populous state. That doesn’t mean real estate investment isn’t still a good bet in the Golden State, however. Rental prices in coastal cities like Los Angeles are high, as they are for the entire state—Californians pay the and largest percentage of their income to rent in the country. reports an 18.7% increase in Los Angeles home values over the past year.

- Price-to-rent ratio: 29.38
- Median sale price: $1,016,642
- Median annual rent: $34,608 ($2,884 per month)
- For-sale home inventory: 8,146

Silicon Valley’s tech startup money and red-hot market have ensured the most expensive housing market in the country continues to rise. While is increasing, than they were a year ago.

The San Francisco Planning Department estimates that rent in the city. The steep rental prices and high PTR ratio indicate that it’s still a lucrative market for smart investors.

- Price-to-rent ratio: 36.44
- Median sale price: $1,244,540
- Median annual rent: $34,152 ($2,846 per month)
- For-sale home inventory: 3,124

The city with the highest PTR ratio in the country is San Jose, located on the southern edge of San Francisco Bay and in California. The Silicon Valley hub is home to numerous tech firm headquarters, including Cisco Systems, Samsung, Hewlett Packard, and Zoom, among others. Home values have skyrocketed 21.8% in the past year. Roughly 45% of the population rents, making this an appealing market for investors.