10 Best Cities for Mid-Term Rental ROI in 2026: High-Return Markets Ranked
The best ROI for furnished or mid-term rentals in 2026 is most likely in markets that combine affordable acquisition costs with strong 30+ day housing demand. Cleveland, Indianapolis, Memphis, Birmingham, Kansas City, San Antonio, Houston, Dallas-Fort Worth, Charlotte, and Phoenix stand out for different reasons. In our experience with MTRs, the best returns come from balancing rent-to-price ratios with hospitals, employers, relocations, and other recurring demand drivers.
What Creates the Best ROI for Furnished or Mid-Term Rentals?
Affordable acquisition cost. A strong monthly furnished rent means less when the purchase price is extremely high. Markets with favorable rent-to-price ratios often provide more room for positive cash flow.
Reliable 30–90+ day demand. Hospitals, corporate relocations, universities, military installations, project work, and insurance displacement can support occupancy beyond the traditional long-term renter pool.
Manageable vacancy. ROI depends on occupied months, not advertised rent. A $3,000 monthly rate with frequent vacancy can underperform a $2,000 unit with consistent occupancy.
Reasonable operating costs. Utilities, furnishings, insurance, taxes, maintenance, cleaning, financing, platform fees, and turnover must all be included when estimating furnished rental returns.
Multiple exit strategies. Markets where a property can work as both a mid-term and conventional long-term rental give investors more flexibility if MTR demand changes.
For a broader starting point, see our guide to top U.S. cities for mid-term rentals.
Best ROI for Furnished or Mid-Term Rentals: 2026 Ranking
| Rank | City | 2026 Conventional Yield Signal* | Main MTR Drivers | ROI Profile |
|---|---|---|---|---|
| 1 | Cleveland, OH | 7.2% net yield estimate | Healthcare, universities, corporate | Cash flow |
| 2 | Indianapolis, IN | 6.8% net yield estimate | Healthcare, pharma, sports, logistics | Balanced |
| 3 | Memphis, TN | 7.0% net yield estimate | Healthcare, logistics, corporate | Cash flow |
| 4 | Birmingham, AL | 6.5% net yield estimate | Healthcare, university, banking | Cash flow |
| 5 | Kansas City, MO | 6.0% net yield estimate | Healthcare, corporate, logistics | Balanced |
| 6 | San Antonio, TX | 5.0% net yield estimate | Military, healthcare | Balanced |
| 7 | Houston, TX | 5.1% net yield estimate | Healthcare, energy, ALE | Demand + value |
| 8 | Dallas, TX | 5.2% net yield estimate | Corporate relocation, healthcare | Growth + demand |
| 9 | Charlotte, NC | 4.8% net yield estimate | Finance, healthcare, relocation | Growth |
| 10 | Phoenix, AZ | 4.1% net yield estimate | Healthcare, corporate, military | Demand growth |
*These yield figures are conventional rental-market estimates, not guaranteed mid-term rental returns. They are useful as rent-to-price benchmarks. Actual MTR ROI depends on purchase price, financing, furnished monthly rent, occupancy, utilities, operating expenses, taxes, insurance, furnishing costs, regulations, and management.
1. Cleveland, Ohio: Best Overall Cash-Flow Potential
Why it ranks #1 / Best for: Cleveland combines a low acquisition-cost profile with one of the strongest conventional rental-yield signals among major U.S. cities and significant healthcare-driven temporary housing demand.
Demand drivers: Cleveland Clinic, University Hospitals, Case Western Reserve University, MetroHealth, Sherwin-Williams, higher education, and visiting medical professionals.
2026 number: One current 2026 rental-yield dataset estimates Cleveland at a 7.2% net yield and 11.2% gross yield, based on a $145,000 median property price and $1,350 median conventional rent. Another current analysis also places Cleveland among America’s highest-yield rental markets.
Context: Those percentages are not furnished MTR returns. A host still needs to determine whether the furnished premium near Cleveland Clinic, University Hospitals, or another demand generator justifies utilities, furniture, vacancy, and turnover.
Cleveland’s combination of lower entry prices and institutional demand makes it one of the strongest candidates for the best ROI for furnished or mid-term rentals.
2. Indianapolis, Indiana: Best Balanced ROI Market
Why it ranks #2 / Best for: Indianapolis offers a compelling combination of affordable property values, conventional rental yield, healthcare, pharmaceutical employment, logistics, and professional demand.
Demand drivers: Indiana University Health, Eli Lilly and Company, Indiana University Indianapolis, Salesforce operations, logistics employers, conventions, sports, and major corporate activity.
2026 number: Current yield estimates place Indianapolis around 6.8% net and 10.5% gross, with a median property price of approximately $165,000 in that dataset.
Context: Indianapolis may not command the headline furnished rents of Boston or Denver, but ROI is a ratio. Lower acquisition costs can allow a moderate monthly rate to produce a stronger return on invested capital.
For landlords comparing MTR ROI by city, Indianapolis is especially interesting because it combines cash-flow potential with a diversified employment base.
3. Memphis, Tennessee: Best for Rent-to-Price Ratio
Why it ranks #3 / Best for: Memphis combines low property prices with strong conventional rental yields and recurring healthcare, logistics, and corporate demand.
Demand drivers: FedEx, St. Jude Children’s Research Hospital, Methodist Le Bonheur Healthcare, Baptist Memorial Health Care, University of Memphis, logistics, and distribution employers.
2026 number: One Q1 2026 dataset estimates Memphis at a 7.0% net rental yield and 10.8% gross yield, based on a $155,000 median property price and $1,400 median conventional rent.
Context: High conventional yield does not guarantee MTR occupancy. Investors should target neighborhoods with clear temporary-housing drivers rather than assuming every low-cost Memphis property works as a furnished monthly rental.
Memphis is therefore better suited to investors prioritizing cash flow than those seeking the highest possible furnished monthly rent.
4. Birmingham, Alabama: Best Underrated Healthcare Market
Why it ranks #4 / Best for: Birmingham combines comparatively low acquisition costs with a major medical and university ecosystem capable of generating temporary furnished-housing demand.
Demand drivers: UAB Hospital, University of Alabama at Birmingham, Children’s of Alabama, Ascension St. Vincent’s, banking, professional services, and medical research.
2026 number: Current rental-yield estimates put Birmingham at approximately 6.5% net and 10.0% gross yield, based on a median property price around $140,000 in the dataset.
Context: For MTR investors, proximity to UAB and other medical facilities matters more than Birmingham’s citywide yield.
Birmingham illustrates why some high ROI rental markets are not the cities with the highest rents. A lower purchase price can materially change the return calculation.
5. Kansas City, Missouri: Best Midwestern Balance
Why it ranks #5 / Best for: Kansas City offers relatively affordable acquisition costs while supporting healthcare, corporate, logistics, engineering, and professional demand.
Demand drivers: University of Kansas Health System in the metro, Children’s Mercy Kansas City, HCA Midwest Health, major logistics operations, engineering firms, and corporate employers.
2026 number: One 2026 dataset estimates Kansas City at approximately 6.0% net and 9.5% gross conventional rental yield, using a $175,000 median price and $1,390 median rent.
Context: Kansas City spans Missouri and Kansas, so taxes, landlord-tenant rules, licensing, and property economics can change depending on the property’s jurisdiction.
Hosts comparing the best cities for ROI furnished mid-term rentals should evaluate Kansas City at the neighborhood level, particularly around hospitals and major employment corridors.
6. San Antonio, Texas: Best ROI Potential for Military Housing
Why it ranks #6 / Best for: San Antonio combines relatively attainable housing costs with an unusually deep military and medical temporary-housing ecosystem.
Demand drivers: Joint Base San Antonio, Fort Sam Houston, Brooke Army Medical Center, Lackland Air Force Base, Randolph Air Force Base, South Texas Medical Center, and UT Health San Antonio.
2026 number: Current conventional rental estimates place San Antonio around a 5.0% net and 7.9% gross yield, with a median property price of roughly $225,000 in the dataset.
Context: PCS moves, TDY assignments, medical training, contractors, and travel healthcare workers create different stay lengths. Hosts should price for the actual renter segment rather than applying one generic monthly rate.
San Antonio’s combination of institutional demand and moderate acquisition costs gives it a compelling MTR ROI by city profile.
7. Houston, Texas: Best Healthcare ROI Opportunity
Why it ranks #7 / Best for: Houston combines a relatively favorable rent-to-price profile with one of the world’s largest medical ecosystems and a deep corporate economy.
Demand drivers: Texas Medical Center, MD Anderson Cancer Center, Houston Methodist, Memorial Hermann, Texas Children’s Hospital, energy companies, engineering firms, and insurance-displacement housing.
2026 number: One current yield dataset estimates Houston at approximately 5.1% net and 8.1% gross conventional rental yield, based on a $240,000 median property price and $1,620 median rent.
Context: Houston cannot be evaluated as one MTR market. A property near Texas Medical Center has a different demand profile from one near the Energy Corridor.
Healthcare-focused hosts can explore our travel nurse housing resources for more on serving this renter group.
8. Dallas-Fort Worth, Texas: Best ROI for Corporate Demand
Why it ranks #8 / Best for: Dallas-Fort Worth combines reasonable conventional rental yields with exceptional renter absorption and corporate-relocation demand.
Demand drivers: UT Southwestern Medical Center, Baylor Scott & White, Las Colinas, Plano, Frisco, financial services, technology, professional services, and major corporate headquarters.
2026 number: Dallas is estimated at approximately 5.2% net conventional rental yield in one Q1 dataset. More importantly for demand, DFW absorbed approximately 18,600 apartment units in the first half of 2026, making it one of the country’s strongest rental markets.
Context: DFW’s size makes submarket selection critical. A corporate property in Las Colinas or Plano should not be evaluated using the same assumptions as a medical-focused rental near UT Southwestern.
For corporate demand, see our guide to marketing mid-term rentals to corporate clients.
9. Charlotte, North Carolina: Best Growth-and-ROI Balance
Why it ranks #9 / Best for: Charlotte sacrifices some immediate yield compared with Midwest markets but adds stronger growth signals from finance, healthcare, corporate relocation, and an expanding renter population.
Demand drivers: Bank of America, Truist, Wells Fargo operations, Atrium Health, Novant Health, Honeywell, and financial-services employers.
2026 number: One current dataset estimates Charlotte’s conventional net rental yield at approximately 4.8%. Meanwhile, Cushman & Wakefield reports that Charlotte’s renter pool expanded by more than 3.5% in the first half of 2026.
Context: Charlotte is more of a balanced growth-and-income play than a maximum-cash-flow market.
For furnished landlords, that can be attractive when a property sits near Uptown, a major hospital, or another corporate demand generator.
10. Phoenix, Arizona: Best Demand-Growth ROI Play
Why it ranks #10 / Best for: Phoenix has a lower conventional yield than the Midwest leaders but extraordinary current renter demand plus healthcare, corporate, military, and seasonal housing drivers.
Demand drivers: Mayo Clinic Arizona, Banner Health, Luke Air Force Base, Arizona State University in the metro, semiconductor employers, corporate relocations, and seasonal residents.
2026 number: Phoenix recorded 12,741 units of net absorption during the first half of 2026, its strongest six-month performance since at least 2000. Vacancy fell 100 basis points year over year to 11.6%.
Context: Phoenix’s average asking apartment rent was $1,592 in Q2 and remained 2.3% below the prior year, while concessions were elevated. That means strong demand has not yet translated into unrestricted pricing power.
Phoenix belongs on this list because the best ROI for furnished or mid-term rentals is not always synonymous with the highest conventional yield. Demand growth and future occupancy potential also matter.
MTR ROI by City: Cash Flow vs. Growth
Different markets make sense for different investment strategies.
| Investor Goal | Cities to Research |
|---|---|
| Maximum cash-flow potential | Cleveland, Memphis, Birmingham |
| Balanced yield and demand | Indianapolis, Kansas City |
| Healthcare-focused MTRs | Cleveland, Birmingham, Houston |
| Military housing | San Antonio |
| Corporate furnished rentals | Dallas, Charlotte |
| Strong renter-demand growth | Phoenix, Dallas |
| Lower acquisition-cost strategy | Cleveland, Memphis, Birmingham |
| Growth + professional demand | Charlotte, Phoenix |
This distinction matters because furnished rental returns should not be judged on monthly rent alone. A $2,000 furnished rental purchased for $175,000 may produce a better return than a $3,500 rental purchased for $600,000.
How to Calculate ROI on a Furnished Mid-Term Rental
- Calculate total cash invested. Include down payment, closing costs, renovations, furniture, kitchen equipment, linens, security equipment, and initial supplies.
- Estimate realistic annual revenue. Multiply achievable furnished rent by expected occupied months. Do not calculate ROI using 12 months of peak-season rent unless the market supports it.
- Subtract every operating expense. Include mortgage interest where relevant to your cash-flow analysis, property taxes, insurance, utilities, internet, maintenance, cleaning, platform costs, management, vacancy, HOA charges, and furniture replacement.
- Calculate cash-on-cash return. Divide annual pre-tax cash flow by the total cash you invested. For example, $12,000 in annual cash flow on $100,000 invested equals a 12% cash-on-cash return.
- Stress-test the investment. Recalculate at lower rent, longer vacancy, higher utility bills, and unexpected maintenance. The deal should not depend on perfect occupancy.
Use our mid-term rental pricing strategy to estimate a sustainable monthly rate before calculating returns.
Why the Highest-Rent City Does Not Always Produce the Best ROI
The best ROI for furnished or mid-term rentals depends on the relationship between revenue and investment, not rent alone.
Expensive markets may generate impressive monthly furnished rents while producing weak cash flow because acquisition costs, taxes, insurance, financing, and operating expenses are also high.
Current conventional rental-yield research illustrates this difference. Cleveland, Memphis, Indianapolis, and Birmingham show stronger yield estimates than Phoenix, Nashville, and many expensive growth markets.
But MTR investors need another layer of analysis. A property near a major hospital may command a meaningful furnished premium that conventional rent data does not capture. Conversely, a cheap property without temporary-housing demand may generate no MTR premium at all.
The best opportunity is therefore a high ROI rental market plus a strong micro-location.
How to Find High ROI Rental Markets for MTRs
Start with rent-to-price ratios, but do not stop there.
Look for properties within practical commuting distance of teaching hospitals, major corporate campuses, military installations, universities, government facilities, construction projects, and large employers. Then compare actual furnished listings with similar bedroom counts, parking, pet policies, utilities, amenities, and stay lengths.
National rental conditions are becoming more supportive. In Q2 2026, U.S. apartment vacancy fell to 8.9%, while trailing four-quarter demand exceeded new supply for the first time since early 2022. Dallas-Fort Worth, Phoenix, Atlanta, and Austin were among the strongest first-half demand markets.
That does not guarantee MTR profitability, but it gives hosts useful context when combined with local furnished-rental research.
Our landlord’s guide to mid-term rentals provides a broader framework for evaluating the business model.
Final Verdict: Best ROI for Furnished or Mid-Term Rentals in 2026
The best ROI for furnished or mid-term rentals in 2026 is likely to come from cities where reasonable property prices overlap with recurring temporary-housing demand. Cleveland, Indianapolis, Memphis, Birmingham, and Kansas City stand out for cash-flow potential, while San Antonio and Houston add strong institutional demand.
Dallas, Charlotte, and Phoenix deserve consideration for a different reason. Their conventional yields may be lower, but current renter demand, corporate growth, healthcare employment, and relocation activity can create compelling MTR opportunities.
The city ranking is only the first filter. The best-performing property will usually be one bought at the right basis, close to genuine 30–90+ day demand, priced competitively, and operated with conservative vacancy and expense assumptions.
Already own a furnished property in one of these markets? List your property on ministays to reach renters searching for 30+ day furnished housing.
FAQ
Where can I find the best ROI for furnished or mid-term rentals?
The best ROI for furnished or mid-term rentals often comes from cities combining affordable property prices with hospitals, employers, universities, military installations, or corporate relocation demand. Cleveland, Indianapolis, Memphis, Birmingham, Kansas City, San Antonio, and Houston are worth researching for cash flow, while Dallas, Charlotte, and Phoenix offer stronger growth-oriented demand signals.
Which cities have the highest MTR ROI in 2026?
There is no authoritative national database ranking actual MTR ROI because returns vary by purchase price, financing, furnished rent, occupancy, and expenses. Conventional 2026 yield data favors cities such as Cleveland, Memphis, Indianapolis, and Birmingham, while Dallas and Phoenix have particularly strong current renter-demand signals.
Is Cleveland a good city for furnished rental returns?
Cleveland is worth researching because conventional rental-yield estimates are strong and the city has significant healthcare and university demand. One 2026 dataset estimates a 7.2% conventional net yield. For MTRs, the strongest opportunities are more likely near Cleveland Clinic, University Hospitals, Case Western Reserve, and other temporary-housing generators.
What is a good ROI for a mid-term rental?
There is no universal percentage that makes an MTR a good investment. Investors should compare cash-on-cash return, cap rate, total return, vacancy risk, financing, and alternative investments. More importantly, calculate ROI using realistic occupied months and all expenses rather than gross furnished rent or an assumed 100% occupancy rate.
Do furnished rentals have better returns than long-term rentals?
They can, but not automatically. Furnished mid-term rentals may command higher monthly rates, while hosts also pay for utilities, furniture, internet, cleaning, turnover, and potentially higher management costs. The relevant comparison is net annual cash flow after all expenses, not the advertised monthly rent for furnished versus unfurnished properties.
Are high ROI rental markets always the cheapest cities?
No. Low acquisition costs can improve rent-to-price ratios, but inexpensive property does not guarantee tenant demand. The strongest high ROI rental markets combine an attractive purchase basis with recurring employment, healthcare, university, military, corporate, or relocation demand and enough renter depth to limit extended vacancy.
How should I compare MTR ROI by city?
Compare acquisition cost, realistic furnished rent, occupancy, taxes, insurance, utilities, furnishing costs, management, maintenance, regulations, and alternative long-term rent. Then evaluate neighborhood-level demand generators. MTR ROI by city is only a screening metric because two properties in the same metro can produce dramatically different returns.
