US cities identified as top single-family rental markets for 2026

The single-family rental (SFR) market is projected to show promise in 2026, driven by anticipated mortgage rate stability around 6%. Investors are looking for a balance of property value growth and consistent rental income.

Indianapolis and Nashville are identified as top contenders for growth and rental income. Indianapolis has been noted by Zillow as a highly buyer-friendly market, with home prices approximately 21% below the national average. Other cities offering a combination of affordability and strong renter demand include Kansas City and Saint Louis.