Best Cities to Invest in Wholesale Real Estate 2026

Are you looking to expand your real estate investing areas, or thinking about getting started in real estate? Well, we’ve assembled a list of the best cities to invest in real estate for 2026.

Curious to see how we came up with this list? Stick around to the end to learn more about the methodology and why certain criteria were important to factor in when looking for investment properties. Without further ado, let’s hop right into the list.

Top 20 Cities to Invest in Real Estate

1. Indianapolis, IN

Indianapolis takes the top spot in our 2026 rankings thanks to its combination of affordability, steady population growth, and investor-friendly housing fundamentals. Compared to many larger metros, home prices in Indianapolis remain relatively low, while demand from both renters and buyers continues to support consistent deal flow.

The city benefits from a diverse employment base anchored by healthcare, logistics, manufacturing, and education, which helps stabilize housing demand even during slower economic periods. This balance makes Indianapolis especially attractive for wholesalers and buy-and-hold investors looking for slightly more predictable outcomes.

From a numbers standpoint, Indianapolis is notable for its lower property tax burden. It also has less household debt than many similar markets. Rental vacancy rates remain moderate, indicating healthy demand for rental properties without the oversupply issues seen in some higher-growth Sun Belt markets. These conditions help support cash flow and reduce holding risk for investors.

Investor takeaway:

Indianapolis is a strong fit for investors who prioritize affordability, consistent demand, and lower downside risk. While it may not see the rapid price appreciation of coastal markets, its stable fundamentals make it one of the most reliable cities to invest in heading into 2026.

2. Lexington, KY

Lexington is second on our 2026 list. It has a good mix of affordable prices, steady housing demand, and low inventory pressure. As a mid-sized city, Lexington offers investors access to lower entry prices than larger metros while still benefiting from consistent renter demand driven by education, healthcare, and regional employment.

The presence of major institutions, including the University of Kentucky, plays a key role in supporting rental demand across multiple neighborhoods. This creates opportunities for both long-term rentals and value-driven strategies such as light rehabs and small multifamily investments.

Investor takeaway:

Lexington is well-suited for investors seeking steady rental demand and lower competition than larger markets. Its consistent fundamentals and manageable pricing make it a dependable option for both new and experienced investors heading into 2026.

3. Louisville, KY

Louisville continues to be a solid investment market in 2026, supported by its affordability, large housing stock, and diverse local economy. The city’s mix of logistics, manufacturing, healthcare, and service-sector employment helps maintain stable housing demand across a wide range of price points.

For real estate investors, Louisville offers a broad selection of older housing stock. Entry prices remain accessible compared to many regional peers, allowing investors to pursue wholesaling, BRRRR, and long-term rental strategies without needing significant upfront capital.

On the data side, Louisville benefits from relatively low household debt levels and vacancy rates that suggest steady rental absorption. While appreciation has been more moderate than in faster-growing markets, the city’s affordability and tax structure continue to support reliable cash-flow opportunities.

4. Memphis, TN

Memphis remains a strong investment market in 2026 due to its low home prices and steady demand from renters and entry-level buyers. Compared to many other cities on this list, Memphis offers investors some of the most affordable acquisition opportunities, which helps support cash flow-focused strategies.

The city’s economy is anchored by logistics, healthcare, and manufacturing, providing a stable employment base that supports ongoing housing demand. While appreciation has been more modest than in higher-growth markets, rental demand remains consistent across many neighborhoods.

5. Fort Wayne, IN

Fort Wayne earns its spot in the top five for 2026 thanks to its affordability and steady housing demand. Home prices remain accessible compared to larger Midwest markets, giving investors room to find deals without facing intense competition.

The local economy is supported by manufacturing, healthcare, and logistics, which helps maintain a stable renter base. While Fort Wayne isn’t a high-growth market, its lower vacancy rates and manageable property taxes contribute to more predictable returns.

Investor takeaway:

Fort Wayne is a good fit for investors prioritizing low acquisition costs and consistency. It’s especially attractive for buy-and-hold strategies where steady cash flow matters more than rapid appreciation.

6. Greensboro, NC

Greensboro stands out as a quieter, data-driven pick for 2026. Home prices remain relatively modest, but rental demand has stayed resilient, helped by healthcare, education, and regional employment growth.

Rather than rapid appreciation, Greensboro offers investors consistency. Vacancy rates remain manageable, and household affordability metrics suggest renters are less financially stretched than in many fast-growing markets.

7. Cleveland, OH

Cleveland remains a workable market in 2026 due to low acquisition costs and steady demand. Investors can still find properties priced to support wholesale spreads and basic rental strategies.

This is not an appreciation-driven market, but affordability and consistent renter demand keep deals moving.

Good fit for: Wholesalers and cash-flow-focused investors.

8. Toledo, OH

Toledo stands out for its low entry prices and reduced competition. Deals tend to be simpler, with fewer pricing pressures compared to larger metros.

While growth is limited, Toledo continues to offer opportunities for investors focused on fundamentals.

Good fit for: Investors seeking low-cost, low-complexity deals. 

9. Buffalo, NY

Buffalo continues to rank well due to its affordability and stable housing demand. Home prices remain accessible compared to many Northeastern markets, which helps support both wholesale and rental strategies.

Despite slower growth, deals still pencil when investors focus on fundamentals and realistic exits.

Good fit for: Investors looking for Northeast exposure without coastal pricing.

10. Norfolk, VA

Norfolk narrowly misses the Top 10 but remains a solid market in 2026. The city benefits from a strong military presence and consistent rental demand, which helps stabilize housing activity.

While prices are higher than in some Midwest markets, Norfolk’s demand drivers and relatively predictable turnover keep it attractive. 

Honorable Mentions

The rest of these cities round out the top 20 list based on our ranking criteria.

1. Virginia Beach, VA
2. Baltimore, MD
3. St. Louis, MO
4. Bakersfield, CA
5. Stockton, CA
6. Sacramento, CA
7. Cincinnati, OH
8. Arlington, VA
9. Jackson, MS
10. Wichita, KS

Methodology

In order to determine what cities would be the best to potentially invest in, whether that's wholesale real estate or other types, a variety of different factors could come into play. So, I started with a list of the 100 largest cities in the United States and then gathered the following data points for them.

House Price Index (25%)

The House Price Index (HPI) is a metric that is used to track changes in the prices of residential real estate. You can find the HPI for different areas from government agencies, real estate associations, or data companies. Believe it or not, the information is used not only by investors but also by economists to help monitor the health of the market.

HPI is typically based on a weighted average of single-family property prices, where each home is assigned a weight proportional to its value. Then those weights are adjusted over time to reflect changes in the market, and the resulting index is used to compare home prices across different regions and time periods.

So, you might still be wondering why this point of data is an important factor when deciding where to invest. Well, it can help identify the different trends in the market and evaluate the potential returns of a given investment.

You can find the HPI for different areas from the U.S. Federal Housing Agency, or take a look at the map below ⬇️.

Median Property Taxes (20%)

Median property taxes refer to how much the property taxes are collected only instead of finding this out for each individual property, it’s been compiled into the average percentage for each area.

This is important to factor into where you want to start investing, especially if you are going to buy and hold a property. You want to make sure to factor in property taxes into whether a deal will make sense to you.

The lower the property tax for the area, the less you will need to pay. To calculate this number for our ranking system, I took the "Median Real Estate Taxes paid" and divided it by the "Median Home Value" according to the latest data, from 2024, that the US Census Bureau had available.

Rental Vacancy (25%)

This is another easy one to see how it fits into the grand scheme of this whole puzzle. Rental vacancy refers to the percentage of rental units that are unoccupied and available for rent at a given time. A high rental vacancy rate can indicate a weak rental market, while a low vacancy rate may suggest strong demand for rental housing.

If you are buying properties for rentals, you’ll want to look in areas that have a higher demand for rental housing. Even if you are wholesaling, there is a good chance that some of your buyers want to hold the properties to use as rentals, so it is a win-win scenario to look at the vacancy rates in each city.

Debt to Income Ratio (DTI) (15%)

Debt-to-income ratio (DTI) is a financial metric that compares a person's monthly debt payments to their monthly income. It is calculated by dividing the total amount of debt payments by the total income for a given period, usually expressed as a percentage. A lower DTI ratio indicates that a person has a lower debt burden and is generally considered more creditworthy.

A tenant or buyer with a high DTI ratio may be at greater risk of defaulting on their rent or mortgage payments, which could negatively impact the investor's returns. Now, looking at this from an overall city location is helpful because you can determine which cities have a higher risk of defaulting on the payment based on their DTI.

Consumer Price Index (CPI) by Region (15%)

The Consumer Price Index (CPI) is a measure of the average change in the prices of a basket of goods and services commonly purchased by households over time. It is used to track inflation and adjust for changes in the cost of living.

Real estate investors should consider the CPI when making investment decisions because inflation can affect the purchasing power of the rental income or resale value of a property. By knowing the CPI for different areas, you can see how it impacts things like rental pricing, resale value, and potential costs in the area.

Resources for Data

In case you’d like to do a little digging for the information in your area, you can check out the resources I used to compile the information for our chart.

• House Price Index
• Median Property Taxes Paid
• Rental Vacancy/Rental Demand
• Debt to Income Ratio
• Consumer Price Index

Conclusion

Thanks for checking out our list of the best cities to invest in for 2026. We hope you learned a little about the potential in each market as well as the criteria you should be looking at when making your decisions on where to invest. It is important to note that while this list of the 20 best cities to invest in is a great starting point, it's important to remember to research and evaluate each individual market yourself before making any investment decisions.