Twenty-four out of financial service company IPX1031’s 30 cities to buy investment properties in were located in the South or Southeast.

North Charleston, South Carolina, is the best city to buy investment property in 2020, according to a recently released list of Best Cities to Buy Investment Property 2020 from financial services company IPX1031.

The list was dominated by southern cities with Winston-Salem, North Carolina taking second place, followed by Chattanooga, Tennessee; High Point, North Carolina; and Tuscaloosa, Alabama, rounding out the top five.

For its analysis, IPX1031 studied 310 cities around the U.S. that contained a population of 100,000 residents or more. Cities were ranked based on median home value, year-over-year home value growth, 10-year population growth, annual property tax and annual return.

The 30 cities, on average, increased in home value by 6 percent year-over-year and have an average annual yield of $6,150 (potential profit after mortgage, property taxes and homeowner’s insurance). The home value to gross rent ratio in the table below represents the number of rent payments it would take to pay for a home in each city based on median rent and median home value, if the home were financed on a 30-year mortgage with a 4 percent fixed interest rate.


Texas, Tennessee and Florida boasted the largest number of cities on the list, with cities in the Lone Star state comprising nearly a third of inclusions. Texas’ affordable home prices — averaging about $153,000 — coupled with its higher median rent prices allowed for an average annual return of $5,700 among Texan cities that made the list.

For those investors not as keen on heading south, the list did include a few Midwestern and Western options, including Kansas City, Kansas (number 11); Lancaster, California (number 18); Cincinnati, Ohio (number 21); Grand Rapids, Michigan (number 22); and Colorado Springs, Colorado (number 28).

Email Lillian Dickerson

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription