The 10 Best Cities for First-Time Real Estate Investors

Average monthly rent: $2,600
Median sale price: $376,567
Gross rental yield: 8.3%
Investment score: 36.77

Residential real estate investors have enjoyed strong returns this decade thanks to the combination of soaring home values and steadily rising rental rates.

Average U.S. home prices increased by 54.9% nationwide between the first quarter of 2020 and the first quarter of 2025, according to the National Association of Home Builders. Meanwhile, research from iProperty Management found that the annual rent per square foot is up more than 47% since 2020.

These dynamics have helped residential real estate investors enjoy annual returns of 9% or higher on the best-performing properties.

Explore More: 10 Best Places To Buy a Short-Term Rental Property To Earn Passive Income in 2025

Check Out: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too

If you’re a first-time real estate investor, it’s important to make the right decisions early on — and one of the most important decisions is choosing the most profitable markets.

These days, many of those markets are located in Florida, according to a new analysis from LLC Attorney, which provides legal and compliance services to entrepreneurs and startups. The study revealed investment property ratings for the 100 most populous U.S. cities based on factors such as affordability, rental income potential, landlord-friendly laws and returns on investment.

Florida dominated the list of top cities for first-time real estate investors, accounting for five of the top 10 spots. Here’s a look at the 10 best cities based on LLC Attorney’s overall investment score.