proverb “Give the people what they want“Resonates for a reason. In real estate, what people want — tenants, especially — is low rent.
This doesn’t always gel with landlords who want higher rents to cover costs and turn a profit. However, as hard as it may seem, there are places where rents of $1,000 or less give both landlords and tenants some satisfaction.
In the South and Midwest, $1,000 a month is not unusual Zillow Research. The data and analytics team at the listing giant found that more than a third of apartments in 13 of the 100 largest metro areas in the U.S. are priced under $1,000. This is in direct contrast to popular East Coast markets like New York, Boston, Washington, DC, and Miami, where typically, less than 2% of apartments rent for less than $1,000/month.
However, in smaller metros like Wichita, Kansas, and McAllen, Texas, it The number has expired 50% In Little Rock, Arkansasfor , for , for , for , . Toledo, Ohiofor , for , for , for , . Oklahoma Cityfor , for , for , for , . And Tulsa, Oklahoma, is nearby.
In Wichita, the $1,000 rent is made possible by the affordability of some homes. This Two bedroom, two bathroom home, in need of minor renovation (3rd bedroom available for a Flipper), currently listed at 92,000,000 – with an estimated payment of P604/month.
One and two bedrooms, one bathroom House, in need of light renovation, available for ₹ 80,000, estimated PITI 525/month. Buying this type of home, fixing it up, and renting it out would allow an investor To quickly create a portfolio Cash flow rent. If investors are willing to spend more money in return for higher rents, the potential options increase.
However, there are many factors beyond low prices and rents when determining the viability of a rental investment, as we will see.
Increasing the trend
These small metros in the South and Midwest buck the trend of much of the country, which is mired In the affordability crisis.
What I think is federal housing policy is stuck In really fragile balance,” Jared Bernstein, who leads President Joe Biden’s Council of Economic Advisers, told Ezra Klein about it. The New York Times. “Too little has been asked of cities and states. They won’t do much to overcome the barriers that are preventing affordable housing.”
While the last decade has seen explosive rent increases.Growing by 50% between 2015 and 2025 In many markets – not debatable, neither is the rising cost of owning a home. Insurance, utilities and financing have also seen sharp spikes, eating into a homeowner’s bottom line. According to the property management platform Baseline85% of landlords increase rents in 2024 to cover operational costs, with a third Among them Increase them from 6% to 10%.
This makes it all the more amazing. It is like the time until another era.
People are moving because of housing costs
The cost of living is the main reason Americans move move big. Not surprisingly, they’re heading to the Midwest or the South, making it a good place for budget-conscious real estate investors looking to start building their portfolios.
Some of the results of Move Budha are as follows:
States
- In 2025, twice as many people moved there as moved there in South Carolina.
- Some states stood out above Statistics for 2024 As far as Bound search go. Wisconsin (+79%), Mississippi (+55%), and Minnesota (+40%) were the most prominent.
- In terms of interest in bound migration, North Carolina, South Carolina, Texas, and Tennessee had the highest volume of online searches.
The city
- The top city for moves in 2025 is Myrtle Beach, South Carolina, with 2.41 inbound moves for every outbound, with baby boomer retirement interest.
- Many of the inbound cities are middle-class or retirement-friendly areas, with small, affordable communities.
Strategies for building a low-cost, low-rent investment portfolio for investors
Aim right Markets
This It may seem obvious. However, it is easy Be guided Use the following to help with your research:
- The median rent is less than $1,200
- Stable wage growth
- High renter population
- Additional or stable supply of homes
For example:
- Midwest College Towns
- Secondary Simbult Metro
- Rural Adjacent South Metro
- In old inner ring suburbs
Use data tools such as:
Buy below replacement cost, and don’t renew too much
Cheap rentals work best when you’re dealing with land costs More than what you will pay. The following are good examples:
- Older single family homes
- Small duplexes and triplexes
- “ugly” but structurally stable properties
- Houses require restoration rather than complete renovation
- If you buy less, avoid splurging on renovations so you can still have cash flow. “Low cost,” “sustainable,” and “practical” are the key words.
Research on operating costs
Low-cost houses are not used much if they come with high-rises Property tax And Insurance. Sometimes homes are undervalued for a reason: No one is buying them.
Don’t believe the hype of the agent or wholesaler. Do your research.
Screen for stability
Just because your rents are low doesn’t mean you have to live in a sketchy neighborhood, relying on increasingly stricken government programs for your rental income. Many rock-solid tenants live in the working class The neighborhood. Look for people who prefer affordability and stability, because they are likely to stick around, and you avoid going out of business. The returns may not be earth-shattering, but over time, these features can be winners.
A reliable tenant pool can come from:
- Teachers
- Hospital staff
- Government worker
- Long-term service sector employees
- Seniors on fixed income
Let the rent catch up Inflation
Even if you start renting for less than $1,000, with low vacancy, stable tenants, and basic maintenance, a modest 2% to 4% annual increase, when tax benefits, debt payments, and when tax benefits, debt payments, and basic maintenance can be strong long-term growth. Appreciation I am in reality. These workhorse properties have made many investors rich over time.
Final thoughts
All that said, just because a city offers low living costs and rents doesn’t automatically mean you should invest there. Case in point: Wichita, Kansas, which despite being featured by Zillow Research, had more people leaving than arriving this year, according to data from MoveBuddha.
So, in determining a good place to invest, do an overall analysis that factors in house prices, rents, net population growth and flows and costs. Analyze data about:
- jobs
- Insurance
- Attractiveness to retirees (low state income taxes, warm weather, community activities and amenities, and location – often found outside major metro areas)
- Development projects
- Crime statistics
- Transportation