{"id":24069,"date":"2026-03-09T11:30:00","date_gmt":"2026-03-09T18:30:00","guid":{"rendered":"https:\/\/www.rentecdirect.com\/blog\/?p=24069"},"modified":"2026-03-09T10:47:08","modified_gmt":"2026-03-09T17:47:08","slug":"best-cities-to-buy-investment-property","status":"publish","type":"post","link":"https:\/\/www.rentecdirect.com\/blog\/best-cities-to-buy-investment-property\/","title":{"rendered":"5 Best Cities to Buy Your First House or Investment Property"},"content":{"rendered":"\n
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Looking for a first home or first investment property? There are lots of factors to consider, from amenities to location to the house itself. Explore these five cities with affordable prices and great amenities to purchase a first house. <\/em><\/p>\n\n\n\n

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When looking to buy your first home or investment property, you may wonder what the best locations are for purchasing. Typically, you want to live or invest somewhere that has affordable houses, but also has a strong local economy. The ideal locations will have housing that costs less of the residents\u2019 income proportionally, as they will attract lots of people looking for affordable homes. <\/p>\n\n\n\n

A would-be landlord or investor might worry that, because the housing in these areas tends to be cheaper, they won\u2019t make as much money in rent. While that is true, the lower cost of investment means that it is an easier market to get into, which makes these areas good starting points. Additionally, as many landlords start out by renting out their first home after buying a second, young people hoping to eventually rent out property will find an affordable investment in their first home, which eventually becomes their first rental. First-time buyers can also take advantage of FHA loans and house hacking<\/a> to purchase a duplex and rent out one of the units while living in their home.<\/p>\n\n\n\n

While there are many excellent places to live and invest, some options are better than others. Generally, the Midwest is the most affordable housing market in the U.S., but there are some outliers, and you can find affordable houses in any state. Here are some of the best options for starter homes and investments. <\/p>\n\n\n\n

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Learn more: How to Spot Investment Properties Likely to Appreciate Over Time<\/a>\u00a0<\/p>\n<\/blockquote>\n\n\n\n

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Decatur, Illinois<\/h2>\n\n\n\n

Ranked as the number one<\/a> cheapest U.S. city to live in this year by U.S. News, Decatur, Illinois<\/a>, is an easy pick for one of the best places to buy a home. With a population of just under 70,000 people and a median home value of slightly below $96,000, Decatur is a good balance of affordability and city living. While not a massive city, it is large enough to have most anything you would look for when living in town.\u00a0<\/p>\n\n\n\n

The median household income is about $52,000, 37% lower than the national median<\/a> of about $82,000, but the median home price is 76% lower than the national median<\/a> of $396,800. Additionally, the median rent of $655 is 56% lower than the national median<\/a> of $1,487. This means that, while the average resident of Decatur makes less money than the median for Americans, their homes are significantly more affordable, meaning that less of their overall income would go towards housing.\u00a0<\/p>\n\n\n\n

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McAllen, Texas<\/h2>\n\n\n\n

Though not as affordable as Decatur, McAllen still boasts a median housing price well below the national average, and is ranked by U.S. News among the best places to live and one of the best medium-sized cities to live in. The population is about 146,000 people, making it a bit busier than Decatur, which could be a great benefit if you want to live in a city that has a lively atmosphere. <\/p>\n\n\n\n

The median home price in the area comes in just under $192,000<\/a>, 52% lower than it is nationally, and the median rent is $863, 42% lower than average. The median income is 24% lower than the national median, which means a resident has less money proportionally going towards their living situation than the average.\u00a0<\/p>\n\n\n\n

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Enid, Oklahoma<\/h2>\n\n\n\n

Another small city, the 50,000-resident city of Enid, Oklahoma, has a healthy job market and affordable homes, making for an excellent market for both first-time home buyers and new investors.  <\/p>\n\n\n\n

Enid\u2019s median income, like most affordable areas, is lower than the national average. However, it is only 24% lower than the national median at $63,000<\/a>, compared with the lower incomes in other affordable areas. Additionally, the median home price is $152,000, which is 62% lower than the U.S. median.\u00a0<\/p>\n\n\n\n

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Bay City, Michigan<\/h2>\n\n\n\n

A small city with plenty of investment opportunities, Bay City, Michigan, is another perfect place to buy a first home or investment property. Located near Lake Huron, Bay City is a small city that might make for an excellent investment for first-time buyers. <\/p>\n\n\n\n

Bay City\u2019s median rent is $638, 57% lower than the national median, and its median home price is $98,000, which is 75% lower than it is nationally. The median salary<\/a> in the area is just over $49,000, which is significantly below the national median, at 41% lower, but the low cost of housing alleviates this issue significantly.\u00a0<\/p>\n\n\n\n

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Broken Arrow, Oklahoma<\/h2>\n\n\n\n

Although more expensive than some of the options on this list, Broken Arrow also has one of the healthiest job markets of these options. Housing there is less expensive than average, but household income is generally higher. This makes Broken Arrow a uniquely excellent place to buy property, as those living in the area will benefit from higher wages, a better job market, and more affordable property prices. Investing in Broken Arrow will give owners and prospective landlords alike a foot in a thriving community. <\/p>\n\n\n\n

The median home price<\/a> in Broken Arrow is $252,000, which is 36% lower than the national median, and the median monthly rent is $1,020, which is 31% lower than it is nationwide. However, the median household income in Broken Arrow is $88,000, which is 7% higher than the national median.\u00a0<\/p>\n\n\n\n

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Final Thoughts<\/h2>\n\n\n\n

There are many excellent locations in the U.S. to purchase your first home or investment property, all across the country. When choosing a city, it is important to look at factors such as median income, pricing of both renting and buying, and, if it is important to you, the local culture. So, when looking for a place to buy your first home or investment property, look into these cities with low housing costs and proportionally higher wages. <\/p>\n\n\n\n

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