Most Profitable Cities for Multifamily Investments in 2026

How we Identified the Best Places to Buy Multifamily Homes

As buyers look into where to buy multifamily investment property in 2026, one question stands out: which U.S. cities offer the best balance of price, income potential, and long-term value? To determine the best places to buy multifamily homes and identify the most profitable locations, LoopNet analyzed 50 cities across the country.

In our study, profitability describes a city's potential to maximize total return on investment by balancing income potential (cap rates) and low overhead (property taxes). We also identified high-value deals by pairing these financials with inventory metrics and lifestyle indicators that ensure long-term renter demand.

Over three-quarters of the score focuses on potential investment by analyzing data from LoopNet listings and local property tax records. We analyzed:

• Investing Metrics (76%):
  • Financials: Average cap rate multifamily data, listing prices, cost per sqft, and county-level property tax rates.
  • Inventory: Property size, unit counts, inventory levels, and listing class—crucial data for knowing where to buy small multifamily properties versus larger assets.
• Lifestyle Metrics (24%): Metrics from the Trust for Public Land and the James Beard Foundation to identify where to buy multifamily homes with long-term renter demand, prioritizing high park quality and access to award-winning dining as drivers of neighborhood desirability.

Best Cities to Buy Multifamily Properties

1. Washington, D.C. (100.00)

Washington, D.C., ranks first among the 50 cities for investors looking to buy multifamily investment property. This top position supports a strong 7.04% cap rate, the seventh-lowest property tax rate at 0.58%, and the sixth-highest number of multifamily listings per 10,000 residents in the complete 50-city study. Nearly 99% of residents live within a 10-minute walk of a park, and the city has the highest number of James Beard Award winners and nominees per 10,000 residents across the entire index.

2. Las Vegas, Nevada (99.74)

Las Vegas ranks second overall out of the 50 cities analyzed in the study. Las Vegas offers an average listing price of $2,020,509. This is paired with a cap rate of 7.07% and the fifth-lowest property tax rate (0.50%) in the whole index, which helps reduce operating costs. Multifamily property listings are notably large, ranking first overall for average square footage per property at 78,951 and third overall for the average number of units per property at 60.2. The city also leads in all 50 analyzed markets in playgrounds per 10,000 children, supporting steady renter demand in family-oriented submarkets.

3. Denver, Colorado (91.21)

Denver ranks third overall out of the 50 cities analyzed. Denver appeals to buyers evaluating where to buy multifamily homes with an emphasis on tax efficiency and asset quality. The city posts the second-lowest property tax rate at 0.44% of all 50 cities in the study, alongside an average cap rate of 5.82%. It also features a relatively high share of newer inventory, with 7.55% of listings classified as Class A. Properties in Denver average 48 units per listing, and 96% of residents live within a 10-minute walk of a park. The city ranks fourth overall in the complete 50-city index for James Beard Award winners and nominees per 10,000 residents.

4. Miami, Florida (89.19)

Miami ranks fourth overall out of the 50 cities analyzed in the study. It has the highest number of multifamily listings per 10,000 residents across the entire 50-city index. It also ranks second overall for both average square footage per listing at 76,478 and average units per property at 52. Miami also has a cap rate of 6.26% and a property tax rate of 0.83%. These characteristics help keep unit costs lower for buyers assessing where to buy multifamily property. Lifestyle indicators—such as 89% of residents living within a 10-minute walk of a park and a median park size of 2.6 acres—help reinforce tenant demand.

5. Richmond, Virginia (86.04)

Richmond ranks fifth overall out of the 50 cities analyzed in the study. It features the sixth-lowest effective property tax rate (0.55%) of all 50 cities analyzed and an average of 45 units per building. With a 7.25% cap rate, Richmond offers a strong yield for investors. Multifamily listings are relatively spacious, averaging 52,258 square feet, which can support higher unit counts or flexible layouts. The city also includes larger parks (median size of 4.7 acres) and the fifth-most playgrounds per 10,000 children across the entire 50-city index.

6. Tulsa, Oklahoma (84.98)

Tulsa ranks sixth overall out of the 50 cities analyzed in the study. Tulsa leads the 50-city index with the highest average number of units per multifamily property at 75. Combined with a strong 8.22% cap rate—the fifth-highest in the study—it stands out as one of the most income-oriented markets. Listings in Tulsa are extensive, averaging 58,239 square feet, and 6.67% of available properties are Class A. While the property tax rate is 1.01%, the city’s livability bolsters an above-average median park size of 9.7 acres, ranking seventh-highest across the entire index.

7. Detroit, Michigan (83.95)

Detroit ranks seventh overall out of the 50 cities analyzed. Detroit delivers the highest cap rate in the entire 50-city index at 11.42%, making it a premier destination for investors focusing on cash flow. Detroit also offers an accessible entry point for potential investors, featuring the sixth-lowest average listing price ($1,485,885) across the entire study. Average listings are 29,105 square feet, and 84% of residents live within a 10-minute walk of a park. While the effective property tax rate is higher at 1.64%, the city's nation-leading yield potential remains the primary driver of investor interest.

8. Baltimore, Maryland (80.82)

Baltimore ranks eighth overall out of the 50 cities studied. Baltimore combines high yield with low acquisition costs, ranking fourth overall in the complete index for cap rate (8.77%) while offering the third-lowest average listing price ($1,026,265) of all cities. Baltimore’s property tax rate sits at 1.10%. Properties average 55 units per listing and rank 13th in the complete 50-city index for multifamily listings per 10,000 residents, supporting scale without premium pricing. Additionally, 88% of residents live within a 10-minute walk of a park.

9. Boston, Massachusetts (78.86)

Boston ranks ninth overall out of the 50 cities. Large assets and lasting stability define the city’s multifamily market; listings average 66 units per property, the second-highest unit count in the entire 50-city ranking. While the average listing price is $3,595,519, the market offers a 6.38% cap rate and a 0.67% property tax rate. Notably, Boston is one of the top performers for accessibility, with 100% of residents living within a 10-minute walk of a park.

10. San Francisco, California (78.11)

San Francisco rounds out the top 10 overall, with solid inventory density, ranking ninth among the 50 analyzed cities for multifamily listings per 10,000 residents. While average listing prices remain high at $3,261,450, the market is better suited for long-term value growth, offering an average cap rate of 5.87% and a 0.68% property tax rate. The city also excels in lifestyle metrics, ranking second overall in the full index for James Beard Award honors and fourth overall for playgrounds per 10,000 children.