Why Ohio, Missouri and Texas Are Strategic Real‑Estate Markets in 2026

National Housing Market Context

The U.S. housing market is entering 2026 in much better balance than the frenzied seller’s market of 2020‑2022. Realtor.com’s 2026 forecast expects the average 30‑year mortgage rate to settle around 6.3 %, single‑family home prices to rise about 2.2 % (nominally) and existing‑home sales to grow 1.7 %. At the same time, inventory is projected to increase almost 8.9 % and rents are forecast to decline 1 % nationally. Rising incomes and slightly lower mortgage rates mean the typical mortgage payment is expected to account for 29.3 % of median household income, the first time since 2022 that affordability dips below the 30 % threshold. These trends suggest that 2026 will be a more balanced market where buyers and sellers have comparable negotiating power.

Sell2Rent’s My Real Estate Analytics dashboard paints a similar picture: as of late 2025 the national median home price was $435,300 and the median asking rent was $1,720 per month. Housing inventory is expected to grow nearly 9 % in 2026, and the average 30‑year fixed mortgage rate was around 6.22 %. The national effective property‑tax rate averaged 1.08 %. Population growth remains a key driver of housing demand; the U.S. population stood at roughly 347 million in 2025 with a median household income of $83,700.

There is no such thing as a state without property tax. All U.S. states levy some form of property tax, but effective rates vary widely. According to a SmartAsset study cited by Sell2Rent, the lowest property‑tax states include Hawaii (0.27 %), Alabama (0.38 %), Idaho and Arizona (0.43 %), South Carolina and Tennessee (0.45 %), Nevada and Delaware (0.47 %), Utah and Colorado (0.49 %). When evaluating potential investments, it is important to consider total tax burden (property, sales and income taxes) rather than chasing “tax‑free” states.

What Makes a State Investor‑Friendly?

Investor‑friendly states combine landlord‑friendly laws, reasonable property‑tax rates, low regulatory burdens and strong demand for rental housing. The Evernest assessment of landlord‑friendly states highlights several factors:

• Eviction process and rent control: States with streamlined eviction timelines and no statewide rent control give landlords flexibility in managing properties.
• Property taxes and insurance costs: Lower effective property‑tax rates and affordable insurance premiums help improve cash flow.
• Licensing and registration: Minimal licensing requirements and little bureaucratic red tape make it easier and cheaper to own and manage rentals.
• Market conditions: Strong job growth, population growth and moderate competition support rental demand and price appreciation.

With these criteria in mind, the following sections explain why Texas, Ohio and Missouri are attractive opportunities for investors in early 2026.

Texas: Growth and Landlord‑Friendly Policies

Demographics and Market Metrics

Sell2Rent’s Texas dashboard shows that the state has a population of about 31 million, a median home price of $346,300 and a median household income of $41,661. The median gross rent is $1,449 per month and the rental‑vacancy rate stands at 9.2 %. Homes typically spend 65 days on the market. Notably, Texas home values had dipped slightly going into 2026 (appreciation of –0.49 %), hinting at a transition from the rapid appreciation seen earlier in the decade. The property‑tax rate is 1.38 %, high relative to the national average but offset by the absence of a state income tax.

Texas remains one of the most landlord‑friendly states in the United States. Evernest notes that landlords only need to provide three‑day notice before filing for eviction and there are no statewide rent‑control laws. While property taxes are relatively high (around 1.68 %), the state’s strong rental demand, lenient regulations and business‑friendly climate more than compensate.

Economic and Population Trends

Texas is also a fast‑growing state. A Sell2Rent/Real Estate Skills report says the state added more than 562,000 residents between July 2023 and July 2024. SmartAsset’s population study ranks Texas as the second fastest‑growing state (2.58 % growth). The U.S. Census Bureau confirms that Princeton, Texas, a Dallas suburb, was the fastest‑growing U.S. city in 2024, with its population rising 30.6 %. Such demographic momentum fuels housing demand and rent growth.

Major metro areas continue to draw residents and jobs. The Dallas–Fort Worth, Houston, Austin and San Antonio metros lead population and job growth, while secondary cities like Lubbock, Waco and Midland gain popularity due to expanding universities and industries. Texas’ job market is diversified across technology, energy, healthcare and manufacturing, and the state leads the nation in job creation. Although home prices in major metros have cooled slightly, affordability challenges keep pushing buyers to suburban and rural markets.

Why Texas Appeals to Investors

• Landlord‑friendly laws: Efficient eviction process (three‑day notice) and lack of rent control.
• Strong demographic growth: Second‑fastest‑growing state and home to the fastest‑growing U.S. city.
• Diverse economy: Expanding tech, energy, healthcare and manufacturing sectors create durable demand for housing.
• Property taxes vs. total tax burden: Despite above-average property‑tax rates (1.38 % -- 1.58 %), Texas does not levy a state income tax, leaving more cash flow for investors.
• Variety of markets: Large metros like Houston, San Antonio and Dallas have median home prices between $256 k and $317 k, affordable relative to coastal markets and long‑term rent growth.

Ohio: Affordability and Stable Demand

Demographics and Market Metrics

Ohio’s market metrics reveal a compelling combination of affordability and steady returns. Sell2Rent’s analytics report shows a population of roughly 11 million, median home price of $271,700, median household income of $36,615 and median gross rent of $1,279. The rental‑vacancy rate is a modest 5.8 % and homes spend about 38 days on the market. Home values appreciated 5.6 % heading into 2026, and the property‑tax rate is about 1.35 %, lower than Texas but slightly above the national average.

Evernest ranks Ohio seventh among landlord‑friendly states, citing a pro‑landlord legal framework with few restrictions on rent increases or security deposits. The state’s eviction process is relatively efficient and the cost of entry is lower than in many coastal states. Property taxes average around 1.52 %, and overall affordability is high.

Market Trends and Forecasts

Although Ohio’s population growth has been modest—only about 2 % from 2010 to 2021, the state remains one of the most affordable places to buy a home in the U.S.. RealWealth predicts that Ohio home sales may decline temporarily because of high interest rates, but demand remains strong in certain metro areas and slow construction will lead to only marginal price increases. The report also notes that population growth is likely to remain sluggish; nonetheless, specific markets such as Columbus, Cleveland and Cincinnati continue to see job growth and rental demand.

The Sell2Rent dashboard highlights major markets: Columbus has a median home price around $254,700, Cleveland just $116,300, and Cincinnati about $252,000, prices well below national averages. These cities offer investors the potential for attractive cap rates (net operating income divided by market value) because rents remain solid while purchase prices are relatively low.

Why Ohio Appeals to Investors

• Affordability: Median home prices in the mid‑$200 k range and strong cash flow relative to purchase price.
• Landlord‑friendly framework: Few rent controls, efficient evictions and moderate property‑tax rates around 1.35 %–1.52 %.
• Demand in key metros: Columbus, Cleveland and Cincinnati show strong rental demand and job growth.
• Opportunity for value‑add and appreciation: Home values appreciated 5.6 % entering 2026; yet purchase prices remain below national averages.

Missouri: Low Taxes and Growing Inventory

Demographics and Market Metrics

In Missouri, Sell2Rent reports a population around 6.2 million, median home price of $283,100, median household income of $36,283 and median gross rent of $1,273. The rental‑vacancy rate is 8.7 % and the median days on market is just 32 days, shorter than in Texas and Ohio. Property values increased 5.3 %, and the state’s property‑tax rate is only 0.85 %, well below the national average.

Evernest ranks Missouri among the top landlord‑friendly states (No. 10). It notes that Missouri has low property taxes (≈ 0.93 %), limited rental regulations and an efficient court system for evictions. Landlords benefit from flexibility in lease agreements and minimal licensing requirements.

Market Trends and Affordability

Missouri’s housing market remains affordable relative to national averages. The FasterHouse analysis shows that the median home price in November 2025 was $280,500, ranking 39th lowest in the country. The state is the ninth most affordable for buyers, with inventory climbing 18.8 % year‑over‑year in March 2025 and 6,679 houses sold by September 2025. Median rent was roughly $1,537 per month and the sale‑to‑list ratio was 0.994, indicating that homes sold at nearly full asking price. Several cities, Kirkwood, Cape Girardeau, St. Louis, Ferguson and Chesterfield, saw annual price growth exceeding 19 %, with Kirkwood leading at 29 %.

Why Missouri Appeals to Investors

• Low property taxes: At 0.85 % (0.93 % according to Evernest), Missouri’s property‑tax burden is significantly below the national average.
• Landlord‑friendly regulations: Efficient eviction process, limited rental laws and minimal licensing requirements.
• Affordability and appreciation: Median home prices around $283 k and strong price growth in several cities provide both cash flow and appreciation potential.
• Growing inventory: Active listings surged 18.8 % year‑over‑year in March 2025, giving investors more options.

Why 2026 Is a Strategic Time to Invest

The balanced national market predicted for 2026—with moderate price growth (2.2 %), easing mortgage rates (~6.3 %) and increasing inventory (8.9 %)—creates a unique window for investors. After years of rapid appreciation, housing markets are cooling to more sustainable levels, offering better opportunities for comparative market analysis and disciplined acquisition.

Investors considering cap rates (net operating income ÷ property value) will find that Texas, Ohio and Missouri offer higher potential returns relative to high‑priced coastal markets. Moderately priced homes paired with solid rents yield respectable cap rates, especially in Ohio and Missouri where property prices remain low but demand is stable. Comparative Market Analysis (CMA)—evaluating recent sales of similar properties, is an essential tool for determining whether a given property is priced appropriately and whether the local market favors buyers or sellers. The current environment, with more inventory and less bidding frenzy, makes it easier to negotiate and avoid overpaying.

How Sell2Rent Makes Investing Easy

Many investors struggle to find profitable deals in a market where prices are high and good opportunities can be hidden. Sell2Rent simplifies the process by connecting homeowners who want to sell their house yet stay as tenants with investors seeking stable, cash‑flowing properties. The platform offers several advantages:

• Returns from day one: The sale‑leaseback model places a tenant immediately in the property, often with pre‑paid rent, so investors earn income from closing.
• Off‑market & discounted deals: Sell2Rent sources properties that are priced below market value and not listed publicly. Investors avoid bidding wars and secure better cap rates.
• Reduced risk: Long‑term tenants stay in their homes and pre‑paid rent minimizes vacancy risk. Unlike typical fix‑and‑flip deals, no immediate repairs are required.

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• End‑to‑end process: The company handles off‑market sourcing, underwriting, contracts, financing arrangements, title checks, inspections and transaction coordination. Investors work with a single point of contact while Sell2Rent’s network of partners provides lending, property management and insurance.

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• Transparency and community: Sell2Rent fosters transparent communication and offers educational resources on cap rates, cash‑on‑cash return, fastest‑growing cities and market forecasts.

To explore opportunities, investors can register at Sell2Rent’s platform and review the sale‑leaseback investment model. Sell2Rent’s MyRealEstateAnalytics.com dashboard provides state‑by‑state market data, including metrics on population, median home price, household income, rents, days on market, appreciation, unemployment and property‑tax rates. This data helps investors perform their own comparative market analysis and identify markets with the best cap rates.

Conclusion

2026 marks a strategic opportunity for real‑estate investors. The national housing market is moving toward equilibrium: modest price growth, increased inventory and easing financing costs provide room for informed decision‑making. Texas stands out for its rapid population and job growth, landlord‑friendly policies and robust economy. Ohio offers affordability, efficient landlord laws and stable cash flow across its major metros. Missouri combines low property taxes, limited regulations and growing inventory with strong price appreciation in key cities. When paired with Sell2Rent’s sale‑leaseback platform, which delivers off‑market deals, immediate income and a simplified investing process, these states represent compelling opportunities to build a portfolio that generates cash flow today while benefiting from long‑term appreciation.