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Any guesses which cities are at the top of RentCafé’s hottest rental markets at the start of 2026? Miami? Phoenix? Austin?
Try Cincinnati, Atlanta, and Minneapolis. They indicate a quiet shift toward affordable, job-rich metros that small investors can also buy into and possibly cash flow from. While the coasts boast luxury living and high-end jobs, early data indicate that the best opportunities for workers and investors over the next few years could lie in the Midwest and interior South.
What RentCafé’s New Rankings Really Show—and What They Don’t
RentCafé based its ranking system on renter behavior on its platform. To collate the list that gauges renter demand, the site examined four specific areas and ranked markets accordingly:
Apartment availability
Favorited listings
Saved searches
Page views
Cincinnati rose to the top spot on the back of some impressive stats. The number of apartments favored by prospective renters jumped 81% year over year, while saved searches climbed 14% by late 2025, and page views climbed 3%. Atlanta’s second-place spot was driven mostly by prospective renters from New York and across Georgia, suggesting ongoing in-migration from pricier markets.
Minneapolis had been a previous RentCafé top spot holder, and at the time the data was collected, favorited listings were up 29% year over year, fifth for total saved searches and ninth for page views. However, this was collected before the ICE immigration crackdown in the city, which caused unrest and affected rental real estate occupancy and the pace of new builds, according to reports in the Star Tribune and Multifamily Dive.
Overall, RentCafé’s report showed that the Midwest accounted for 11 spots and the South accounted for 10 spots on its annual list, reflecting primarily affordability, livability, and the amenities available in rentals and surrounding areas in traditional blue-collar cities like Minneapolis, Cleveland, and Detroit, as well as in Western markets like Santa Ana, California.
That’s not to say that high-demand big metros like Dallas, New York, Chicago, and Miami are flagging. In fact, even with 500,000 new apartments coming to those areas, data shows that finding a vacancy there remains a challenge.
Why Middle America Is Surging
The affordability crisis is at the crux of Americans’ need to move to cheaper markets. According to The Wall Street Journal, overall living expenses in several Midwest metros are about 8.5% under the U.S. average.
A WSJ/Realtor.com Emerging Housing Markets Index for winter 2026 found that Midwest markets with reputable universities, strong medical infrastructure, and manufacturing hubs were particularly resilient. Matching those attributes with affordability, median home prices were largely between $240,000 and $400,000, and the cost of living was below national norms.
According to a recent LendingTree study, Americans are paying “hundreds of extra dollars in rent”—about 40% more for one- and two-bedroom apartments—than even five years ago, while wages have not kept pace, putting a tremendous squeeze on renters and ushering a migration to more affordable cities.
The housing industry has responded by bringing thousands of new apartments to the rental market, increasing residential construction starts 5.2% month over month to 1.428 million units as of July 2025, with new apartment construction up by more than 50% across two months in mid-2025, according to the Commerce Department’s Census Bureau data, as quoted by Reuters.
Still a Chronic Shortage of Housing
The National Apartment Association and the National Multi-Family Housing Council released a joint statement on the eve of President Trump’s State of the Union address, citing the need for more housing to ease the affordability crisis, saying:
“Neither one speech nor one single federal policy is going to solve the housing affordability challenges we face. Instead, alleviating the housing shortage requires a sustained commitment to building housing of all types, backed by public and private investment, through public-private partnerships and freed from outdated rules that slow construction and drive up costs. It also requires the administration to lean into what we know works—building more housing—and resist repeating mistakes of the past.”
Reading the Data for Smaller Investors
Clearly, cheaper, more affordable markets around employment hubs are an essential play for smaller investors seeking stable rental income. A recent report from Bank of America showed that the exodus of residents from high-cost areas such as Los Angeles and New York to smaller Southern cities is fueling out-of-state migration, concluding that “affordability and climate remain the two biggest magnets—and the two biggest push factors.”
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‘The Straw That Breaks the Camel’s Back’
Minneapolis presents a cautionary tale for investors. In the turbulent political climate, cities with high immigrant populations that face deportation drives by ICE could have severe repercussions for landlords.
Chris Nebenzahl, vice president of rental research at John Burns Research and Consulting, told Multifamily Dive that in some buildings, immigration enforcement “could be the straw that breaks the camel’s back,” particularly for owners facing loans originated in 2021 that are coming due amid higher vacancies and lower rent rolls.
Nebenzahl added that the combination of past supply issues and now a demand shock from immigration policy “is really putting some folks in a bit of a lurch from an occupancy perspective.” Other landlords in Florida and Texas told the outlet that they have also seen detrimental effects on leasing and occupancy when ICE enforcement intensity is particularly high.
It is still too early, amid continuing ICE raids, to see how long it takes for leasing activity to return to previous levels after enforcement activity in an area rescinds.
Final Thoughts
The rental market remains highly fluid in the U.S., with the shifting economic climate having a pronounced effect on rental activity, particularly with the advent of remote work, which means many people are less likely to stay in an expensive city for a job. There has been a shift toward more affordable, climate-friendly areas.
RentCafé’s list is interesting because it’s not one documented after the fact but one based largely on online activity, which is an indicator of future movement. That’s why it’s good to combine RentCafé data with rent growth data to see how interest translates into action.
According to research firm Arbor Realty Trust, Minneapolis finished 2025 as the second-strongest multifamily rent growth market in the country, with 2% growth and an average rent of about $1,497 per unit.
For small landlords, the play is simple: Follow the money. Larger apartment buildings are being built at a clip, but not everyone wants to live in a building with hundreds of other people.
Consequently, single-family rental houses in these markets are coveted, according to National Mortgage Professional, which reports that just 13.7% of single-family rentals are occupied by renters—a decade low. Finding pockets of available single-family and small multifamily properties in these markets should ensure strong demand.
