7 Underrated Neighborhoods Where Rental Yields Are Soaring

Rental income has always been one of the primary drives for real estate investments, especially in the US. For example, according to reports from Statista, the generated revenue from rental and leasing in 2024 was around $700 billion.

However, not all neighborhoods in the US offer the kind of rental yields that would make it worth investing. For a good investment, you need a location where properties have higher rental profits and lower competition, AKA the hidden gems. Let’s explore the 7 underrated neighborhoods in the US where rental income opportunity is at its best.

Top 7 US Neighborhoods with Soaring Rental Yields

As the real estate market becomes more competitive each day, you need to have a keen eye for neighborhoods that offer high rental yields. Most of the underrated areas offer exactly that for both landlords and investors.

Here are 7 such underrated neighborhoods where rental income is higher than usual:

1. Winthrop, MA

Winthrop, a coastal town near Boston, offers a unique blend of suburban tranquility and urban accessibility.

This neighborhood’s appeal lies in its scenic views, reputable schools, and proximity to Boston. All of this makes it an attractive option for renters seeking affordability without sacrificing convenience.

• Average Housing Cost: $663,973, up by 4.9% compared to last year. (Source: Zillow)

The housing market in Winthrop primarily consists of single-family homes and multi-family units. As a result, you can easily find rentable properties that would cater to both families and young professionals. 

Average rent	Month-over-month change	Year-over-year change	Available rentals
$2,700	-$5	-$250	89

The town also maintains a relatively low crime rate(6% lower than nation’s average), enhancing its desirability for long-term residency. 

Moreover, if you wish to sell your rental properties a few years later, that won’t be hard at all. Just prepare your property for sale, and it will be out of the market shortly due to the high demand.

2. Idylwood, Houston TX

Developed in the 1930s, Idylwood is a historic neighborhood in southeastern Houston. The area features mid-century ranch-style homes and studios with 2-bedrooms to cater to all sorts of buyers/renters.

Idlywood is also in proximity to the Texas Medical Center, Houston Museum District, and the University of Houston. Thus, making it an even more attractive choice for renters with family and rental property investors in Texas.

As of 2025, the median housing cost is around $438,000, which is up by 53% compared to last year. Furthermore, the average rent in this area typically falls around $1,200 to $2,300 per month.

3. Harrisburg, PA

Harrisburg, the capital of Pennsylvania, got its reputation as a purely governmental hub. And because of it, this emerging vibrant town is home to government jobs, healthcare institutions, and universities.

Combine that with the lower cost of living, you’ve got yourself some of the most up-and-coming neighborhoods with an ever-increasing rental property demand and potentially reasonably priced insurance in Pennsylvania.

Speaking of neighborhoods, Midtown and Camp Hill offer safe and family-friendly properties, like duplexes and small apartment buildings.

Average rent	Month-over-month change	Year-over-year change	Available rentals
$1,395	$45	$70	257

Furthermore, according to the Zillow Index, the median housing cost in this area is approximately $242,254.

4. Boise, Idaho

Boise, the capital of Idaho, has experienced a population boom in recent years, which has also led to a growing demand for rental properties. It was mainly due to the area’s outdoor lifestyle, strong economy, and opportunities in the tech & healthcare industries.

What makes it an attractive option for both renters and investors is that the home prices in Boise remain more affordable than in larger West Coast cities.

• Average Housing Cost: $481,661, up by 3.2% compared to last year. (Source: Zillow)

The rental market includes a mix of single-family homes, condos, and modern apartments, catering to young professionals and families alike.

Average rent	Month-over-month change	Year-over-year change	Available rentals
$1,780	-$11	$5	636

While it has seen rapid growth, most neighborhoods in Boise still maintain a relatively low crime rate, with over 12% lower crime rate than the nation’s average.

5. Columbus, Ohio

Thanks to its affordability and job growth, Columbus, Ohio, is one of the most promising cities for real estate investors.

The city’s diverse economy, anchored by major employers, has fueled population growth and created a strong need for rental housing.

Despite that, the average home prices in Columbus are still relatively low compared to national averages, coming in at around $238,832. (Source: Zillow)

The rental market in this area is also diverse, with single-family homes, duplexes, and modern apartment complexes.

Average rent	Month-over-month change	Year-over-year change	Available rentals
$1,505	$10	$10	2758

In short, Columbus provides a stable rental market with steady demand, particularly from young professionals and students.

6. Greenville, SC

Greenville is a charming city in South Carolina that has seen incredible growth in recent years. It has been gaining attention due to its notable surge in the job market and an influx of new residents. And because of that, investors can get strong rental yields for average market rent, without overextending their budgets.

Despite its pleasant climate and thriving downtown area, the average housing cost is still pretty affordable, around $308,178. (Source: Zillow)

What’s even more interesting is that the rental market includes everything a buyer/renter can demand. From historic homes and single-family rentals to modern apartments.

Average rent	Month-over-month change	Year-over-year change	Available rentals
$1,789	$14	-$11	519

Greenville also boasts a relatively low crime rate and a high quality of life, making it a stable and attractive market for landlords.

7. Colorado Springs, CO

Colorado Springs is a sprawling city at the base of the Rocky Mountains. Over the last few years, it has become a prime location for real estate investors due to its strong job market, military presence, and high quality of life.

The growing tech industry and proximity to Denver are mostly what attract professionals to its neighborhoods. The lower cost of living compared to Denver is also a driving factor, which can greatly help with financing a rental property here.

Among others, the Briargate neighborhood stands out as an excellent investment opportunity for landlords seeking strong rental yields.

• Median Housing Cost: $450,033, up by 1.5% compared to last year. (Source: Zillow)

Furthermore, the rental properties in this area range from older single-family homes in established neighborhoods to new apartment complexes near downtown.

Average rent	Month-over-month change	Year-over-year change	Available rentals
$1,800	-$66	-$32	1560

While crime rates vary, many areas, such as the north and west sides, offer safer and more stable investment opportunities.

Wrapping Up

Finding the right neighborhood is key to maximizing rental income and long-term property value. While popular cities get all the attention, underrated neighborhoods often offer better rental yields, lower entry costs, and strong tenant demand.