Best States to Buy Multifamily Property in 2026: A Review
Maryland, not a Sun Belt boomtown, tops WalletInvestor’s new ranking of the best states to buy multifamily properties in 2026. The piece, by Naomi Barati and published on October 26, 2026, scores 49 states on income, entry price and population growth using listing data from Realmo, a commercial real estate intelligence platform.
Its core argument is a trade-off most investors feel but rarely see measured. States that are adding people tend to offer thin yields, while states with fat yields tend to be standing still. Idaho and Ohio are the bookends: Idaho’s ZIP-area population grew 7.9% in three years with a 4.2% median modeled cap rate, while Ohio grew under 1% and carries a 10.1% rate, the highest in the country.
We read the ranking closely. It is a useful screen and unusually candid about its own limits, but a few of those limits matter more than the article lets on.
The top 8 at a glance
Every state in the top 8 asks less per square foot than the U.S. median of $181, and only four beat the U.S. on all three measures.
| Rank | State | Score (0–100) | Median ask, $/SF | Median whole-property ask, $ | Priced listings | Profile |
|---|---|---|---|---|---|---|
| 1 | Maryland | 77.6 | 136 | 352,000 | 489 | All-rounder |
| 2 | Indiana | 75.4 | 95 | 250,000 | 737 | All-rounder |
| 3 | Ohio | 72.6 | 82 | 220,000 | 1,910 | Income play |
| 4 | Texas | 72.2 | 148 | 422,000 | 4,023 | All-rounder |
| 5 | Minnesota | 71.4 | 153 | 390,000 | 911 | All-rounder |
| 6 | Delaware | 67.6 | 171 | 397,000 | 78 | Growth play |
| 7 | Tennessee | 67.3 | 151 | 399,000 | 744 | Growth play |
| 8 | Iowa | 67.0 | 97 | 265,000 | 488 | Income play |
| – | U.S. | – | 181 | 542,000 | 50,262 | – |
All-rounder = beats the U.S. on growth, modeled cap rate and price. Income play = high yield, slow growth. Growth play = fast growth, below-median yield. Data: WalletInvestor, based on Realmo listings as of October 2026.
How the score works
The score is a weighted blend of three percentile ranks, with population growth carrying the most weight.
| Pillar | Metric | Weight |
|---|---|---|
| Demand | Population growth across matched ZIP Code areas, 2020–2023 (ACS) | 40% |
| Income | Median modeled cap rate, higher is better | 35% |
| Entry cost | Median asking price per SF, lower is better | 25% |
Each state is ranked against the others on each metric, and the weighted percentiles become a 0–100 score. A state needed at least 50 priced listings and 50 cap-rate estimates to qualify, which knocked out North Dakota and Wyoming and left 49 of 51 jurisdictions (the states plus Washington, DC).
The universe is multifamily property listed for sale as commercial real estate. Small 2–4 unit buildings and larger complexes are pooled together, and single-family rentals are excluded.
Where the states land on growth versus yield
[embedded content: WalletInvestor ranking based on Realmo listings, October 2026; population from ACS ZIP Code data, 2020–2023 · top 8 plus Michigan (9th), Idaho (29th) and Florida (36th)]
The four all-rounders are the only states in the upper-right box. Ohio, Iowa and Michigan pay well but grow slowly, while Delaware, Tennessee, Florida and Idaho grow fast on thinner yields. Michigan’s 9.1% modeled cap rate is second only to Ohio’s, yet 0.4% growth leaves it 9th, just outside the list.
What the article gets right
The ranking’s biggest strength is that it measures the growth-versus-income trade-off instead of just asserting it.
- It quantifies the trade-off. Splitting states into quarters by growth, the fastest-growing quarter asks a median $215/SF at a 5.3% modeled cap rate, against $134/SF at 6.4% in the slowest. Of the 10 fastest-growing states, only Rhode Island clears the U.S. median cap rate of 6.2%.
- It pushes back on the Sun Belt story. Florida has 7,243 multifamily listings and 3.1% population growth, yet finishes 36th on a $281/SF median ask and a 4.7% modeled cap rate. Idaho, the fastest-growing state, lands 29th.
- It shows its sample sizes. Each state’s listing count is published, and Delaware’s spot is flagged as provisional because it rests on 78 priced listings. Maryland’s median also comes with its spread: the middle half of asks runs from $94 to $188/SF.
- It stress-tests its own weights. Price and cap rate are strongly linked (Spearman −0.72), so roughly 60% of the weight effectively rewards cheap states. With equal weights, 6 of the top 8 hold; drop population growth and only 4 survive.
That last point leads the author to a sensible conclusion: treat the ranks “as a screen, not a precise order.” Few state rankings say that about themselves.
What to check before you act on it
The ranking’s blind spots are the operating realities that turn a modeled cap rate into actual cash flow.
- The demand data is dated. Population growth covers 2020–2023 from the American Community Survey, while prices are an October 2026 snapshot. It shows where people moved, not where they are moving now.
- Yields are modeled, prices are asks. Neither is a closed deal. A 10.1% modeled rate in Ohio or 9.1% in Michigan still has to survive a rent roll, an expense audit and an inspection.
- Small and large buildings are mixed. Median whole-property asks in the top 8 run from $220,000 to $422,000, which suggests small buildings dominate the sample. Buyers of 100-unit assets should not read the results across.
- Costs and vacancy sit outside the score. Taxes, insurance, new supply and vacancy are excluded. Realmo data cited in the article puts U.S. multifamily vacancy at 9.3% in 2025, up from 7.1% in 2022.
Regulation is the gap we would flag first, because it touches two of the four all-rounders. In Maryland, Montgomery County caps increases on regulated units at the lesser of CPI-U plus 3% or 6%, which works out to 5.2% from July 1, 2026. County figures put about 57% of its roughly 114,000 licensed rental units under the law at the end of 2025, and neighboring Prince George’s County has had its own rent stabilization law since September 2024.
In Minnesota, St. Paul limits most increases to 3% a year, though new construction has been exempt since a 2025 amendment. None of this disqualifies Maryland or Minnesota. It does mean the rent growth behind a modeled cap rate depends on the county and city, not just the state.
Our verdict
WalletInvestor’s ranking is a good first filter, not a buy list. Its real contribution is measuring the trade-off: in most states, you pay for growth with yield, or for yield with growth.
Use it to build a shortlist. Maryland, Indiana, Texas and Minnesota give up the least on either side; Ohio and Iowa suit income-first buyers; Delaware and Tennessee suit buyers betting on demand. Then work down to the metro and county level, where rent rules, tax bills, insurance and vacancy decide whether a modeled cap rate becomes real income.
Disclaimer: This review is for information only and is not investment advice.