What we score on
- Price-to-rent ratio. Annual rent ÷ purchase price. Higher = better cash flow. Ideal: above 10%.
- DSCR at 75% LTV. Does the rent cover a DSCR mortgage? 1.20+ qualifies.
- Landlord friendliness. Eviction speed, rent control, court efficiency. Ideal: no rent control.
Top 10 cash-flow metros
| # | metro | avg price | avg rent | DSCR | LL friendly |
|---|---|---|---|---|---|
| 1 | Cleveland, OH | $102k | $1,050 | 1.42 | high |
| 2 | Detroit, MI | $88k | $980 | 1.51 | medium |
| 3 | Memphis, TN | $128k | $1,210 | 1.29 | high |
| 4 | Indianapolis, IN | $185k | $1,480 | 1.22 | high |
| 5 | Columbus, OH | $210k | $1,590 | 1.19 | high |
| 6 | Kansas City, MO | $195k | $1,420 | 1.18 | high |
| 7 | Birmingham, AL | $142k | $1,180 | 1.25 | high |
| 8 | Pittsburgh, PA | $165k | $1,300 | 1.21 | medium |
| 9 | St. Louis, MO | $155k | $1,220 | 1.23 | medium |
| 10 | Dayton, OH | $115k | $1,020 | 1.35 | high |
What to watch out for
The cheapest markets aren't automatically the best. Cleveland and Detroit have nation-leading price-to-rent ratios but require careful neighborhood-level due diligence — there are blocks where you'll never collect rent and blocks where Section 8 demand is bottomless. The difference is two streets.
Use ratings (A/B/C/D-grade neighborhoods), school scores, vacancy heatmaps, and recent price action — not just the metro-wide average. Verleon scores every listing against the surrounding 1/4-mile.
Under-the-radar picks
- Dayton, OH — military + university demand, very low entry.
- Birmingham, AL — university anchor, Section 8 deep, low taxes.
- Pittsburgh, PA — university anchored, stable economy, affordable vs East Coast.