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The saying “give the people what they want” resonates for a reason. In real estate, what people want—tenants, specifically—is low rent.
That doesn’t always gel with landlords who want higher rents to cover expenses and turn a profit. However, as counterintuitive 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 uncommon, according to Zillow research. The data and analytics team at the listing giant found that 13 metro areas among the 100 largest in the U.S. have more than one-third of apartment listings priced below $1,000. That’s in direct contrast to popular East Coast markets such as New York, Boston, Washington, D.C., and Miami, where generally, less than 2% of apartments rent for under $1,000/month.
However, in smaller metros like Wichita, Kansas, and McAllen, Texas, this number is over 50%. In Little Rock, Arkansas, Toledo, Ohio, Oklahoma City, and Tulsa, Oklahoma, it is nearly that.
In Wichita, the $1,000 rents are made possible by the affordability of some houses. This two-bedroom, two-bathroom home, which needs minor repairs (the third bedroom is available for a flipper), is currently listed for $92,000—with an estimated PITI payment of $604/month.
Another two-bedroom, one-bathroom home, in need of light rehab, is available for $80,000, with an estimated PITI payment of $525/month. Buying this type of home, fixing it up, and renting it out would allow an investor to quickly build a portfolio of cash-flowing rentals. If investors want to spend more money in exchange for higher rents, the potential selection options increase.
However, there are many factors beyond low prices and rents to consider when determining the viability of a rental investment, as we’ll see.
Bucking the Trend
These smaller metros in the South and Midwest buck the trend for much of the nation, which is mired in an affordability crisis.
“?The thing that I think we learned is that federal housing policy is stuck in a really weak equilibrium,” Jared Bernstein, who led President Joe Biden’s Council of Economic Advisers, told Ezra Klein of the New York Times. “There is just far too little asked of cities and states. They won’t do much to push back on the barriers that are blocking affordable housing.”
While the explosive rent growth of the last decade—rising 50% between 2015 and 2025 in many markets—is not debatable, neither is the rising cost of being a landlord. Insurance, utilities, and financing have also seen sharp spikes, eating into a landlord’s bottom line. According to property management platform Baseline, 85% of landlords increased rents in 2024 to offset operational expenses, with one-third of these raising them by 6% to 10%.
All this makes the $1,000 rental scenario all the more astounding. It’s like time-traveling to a bygone era.
People Are Moving Because of Housing Costs
The cost of housing is the primary reason Americans move, according to MoveBuddha. Unsurprisingly, they’re heading to the Midwest or South, making it a good place for real estate investors with limited budgets who want to start building their portfolios.
Some of MoveBuddha’s findings are as follows:
States
- In 2025, South Carolina had twice as many people moving there as leaving.
- Some states were markedly up on 2024’s stats as far as inbound searches go. Wisconsin (+79%), Mississippi (+55%), and Minnesota (+40%) were among the most prominent.
- In terms of interest in total inbound migration, North Carolina, South Carolina, Texas, and Tennessee had the highest online search volume.
Cities
- The top city for moves in 2025 is Myrtle Beach, South Carolina, with 2.41 inbound moves for every outbound one, fueled by Baby Boomer retirement interest.
- Many of the inbound cities are mid-sized or retirement-friendly areas, with smaller, affordable communities.
Strategies for Investors to Build a Low-Cost, Low-Rent Investment Portfolio
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Target the right markets
This might seem obvious. However, it’s easy to be led astray. Use the following to help in your research:
- Median rents below $1,200
- Steady wage growth
- High renter populations
- A surplus or stabilizing supply of homes
Examples:
- Midwest college towns
- Secondary Sunbelt metros
- Rural-adjacent Southern metros
- Older inner-ring suburbs
Use data tools like:
Buy below replacement costs, and don’t over-renovate
Affordable rentals work best when you are competing with land costs higher than what you will pay. The following are good examples:
- Older single-family homes
- Small duplexes and triplexes
- “Ugly” but structurally sound properties
- Houses requiring a rehab rather than a complete renovation
- If you buy low, avoid overspending on renovation so you can still cash flow. “Low cost,” “durable,” and “practical” are keywords.
Research operating costs
Low-priced homes are not much use if they come with high property taxes and insurance. Sometimes homes are priced low for a reason: No one is buying them.
Don’t believe the agent or wholesaler’s hype. Do your own research.
Screen for stability
Just because your rents are low doesn’t mean you have to be in a sketchy neighborhood, relying on increasingly imperiled government programs for your rental incomes. Plenty of rock-solid tenants live in working-class neighborhoods. Look for those who prioritize affordability and stability, as they are likely to stick around, and you avoid turnover churn. The returns might not be earth-shattering, but over time, these properties can be winners.
A reliable tenant pool can come from:
- Teachers
- Hospital staff
- Government workers
- Long-term service sector employees
- Seniors on fixed incomes
Let rents catch inflation
Even if you start renting for below $1,000, modest 2% to 4% annual increases, coupled with low vacancy, stable tenants, and basic maintenance, can yield strong long-term growth when tax advantages, debt paydown, and appreciation are factored in. These workhorse properties have made many investors wealthy over time.
Final Thoughts
All this said, just because a city offers low housing costs and rents doesn’t automatically mean you should invest there. Case in point: Wichita, Kansas, which this year had more people leaving than coming in, according to MoveBuddha data, despite being highlighted by Zillow Research.
So, in determining a good place to invest, do an overall analysis that factors in house prices, rents, net population inflows and outflows, and expenses. Analyze data regarding:
- Jobs
- Insurance
- The attraction for retirees (low state income taxes, warm weather, community activities and amenities, and space—often found outside larger metro areas)
- Development projects
- Crime stats
- Transportation
