Historically, most mom-and-pop landlords choose homes in their backyards. It’s a practical choice, as they often manage the properties themselves and need to be nearby should a pipe break or a basement flood. With the recent growth of rental management companies to do the dirty work, investors are increasingly looking nationally and don’t necessarily want to have to travel to see the properties they buy. That means statistics are key, and potential investors are hungrier than ever for data. “They know real estate is a good investment, and they want to invest, but to do all the due diligence takes a lot of work, and most of our investors are already busy with other jobs,” said Hovland. So, will every house in each of those Top 20 markets yield top dollar? Not necessarily. There will always be renters who fail to pay and extenuating circumstances that can suddenly cause a local market to turn. As with the other multitude of lists and rankings, this is just a guide.