Where to invest in real estate: six markets compared on the numbers that matter
Most market rankings compare purchase price. Purchase price is the entry fee — what determines your return is what the property costs to hold every year afterward. Six markets, compared on taxes, insurance, rental demand and the risk of the building not being there next season.
The comparison
| Market | Median price | Property tax / yr | Insurance / yr | Main risk |
|---|---|---|---|---|
| Las Vegas, NV | ~$475,000 | ~$2,300 | ~$1,300 | Heat, localised flash flooding |
| Nashville, TN | ~$540,000 | ~$3,100 | ~$2,400 | Entry price |
| Tampa, FL | Just under $400,000 | ~$3,200 | ~$2,700 | Hurricanes, insurability |
| Dallas, TX | ~$434,000 | ~$7,000 | High — in line with Texas | Tax burden |
| Miami, FL | ~$535,000 | ~$4,300 | ~$5,300 | Hurricanes, storm damage |
| Houston, TX | ~$370,000 | ~$6,000 | ~$6,600 | Flooding, hurricanes |
Read the Houston and Las Vegas rows together. Houston is more than $100,000 cheaper to buy — and costs roughly $9,000 more every year to hold. Over a ten-year hold that difference exceeds the purchase price advantage several times over.
What each one offers, and costs
Houston, Texas — cheapest in, most expensive to hold
A median around $370,000 makes it the most accessible market here. Then roughly $6,000 in property taxes and $6,600 in insurance arrive annually, driven by flood and hurricane exposure. Recent storms have done substantial damage in the area.
Miami, Florida — high risk, high reward
Strong rental yields, reported around 5–7%, plus consistent demand from international investors. Against that: a $535,000 median, $4,300 in taxes, $5,300 in insurance, and hurricane exposure that drives both maintenance costs and damage risk. It can pay off for an investor comfortable with that profile.
Tampa, Florida — tourism demand, insurance question
Heavy tourism supports genuinely strong short-term rental performance, at a lower entry point than Miami — just under $400,000, with moderate taxes and insurance by Florida standards.
The concern here is not the premium but the availability. In some storm-affected areas, insurers have withdrawn entirely. Before buying anywhere in this market, confirm that the specific property can actually be insured — not just what it would cost.
Dallas, Texas — demand undercut by the tax bill
Steady population growth, strong rental demand and a $434,000 median. The problem is carrying cost: roughly $7,000 a year in property taxes, plus Texas-level insurance. You will fill the property; the annual bill takes a meaningful bite out of what it returns.
Nashville, Tennessee — the appreciation play
Sustained population growth, rising values and comparatively reasonable carrying costs at around $3,100 in tax and $2,400 in insurance — far below Texas or Florida.
The obstacle is the entry price. At a $540,000 median it is the most expensive market on the list, which prices out some investors. Best suited to a long horizon where appreciation, rather than day-one cash flow, is the thesis.
Las Vegas, Nevada — lower risk, strong returns
Growing population, strong demand for both long-term and short-term rentals, and a median around $475,000 that remains moderate against comparable metros.
The differentiator is annual cost. Roughly $2,300 in property taxes and $1,300 in insurance — about $3,600 combined. Nevada's assessment method and its cap on annual increases both help, and the absence of hurricane and coastal storm exposure keeps insurance low.
On natural disaster risk
The advantage over Gulf and Atlantic markets is real: no hurricanes, no coastal storm surge, and insurance priced accordingly.
It is not risk-free, and it would be wrong to claim otherwise:
- Nevada is seismically active. Most of it sits away from Las Vegas, and the valley has not experienced the damaging events California has — but "no earthquakes" overstates it.
- Flash flooding is a genuine local hazard. Summer monsoon storms drop water faster than desert ground absorbs it. Risk is parcel-specific, which is why every community guide on this site tells you to check FEMA maps for the individual address.
- Extreme heat is a real operating cost — cooling, HVAC wear, and roof and exterior degradation.
The honest framing is comparative rather than absolute: materially lower catastrophe exposure than the Gulf and Atlantic markets, not an absence of risk.
Final rankings
| Category | Market |
|---|---|
| Best overall — low risk, strong returns | Las Vegas |
| Best for appreciation | Nashville |
| Strong rental demand, tax heavy | Dallas |
| Good short-term rentals, storm risk | Tampa and Miami |
| Most affordable, highest insurance | Houston |
No market wins on every dimension, and the right answer depends on what you need the property to do. An investor prioritising day-one cash flow chooses differently from one buying for a ten-year appreciation thesis.
What the exercise demonstrates regardless of which you pick: compare annual carrying cost, not just purchase price. Run that column for any market you are considering.
A note on these figures
Every number here is a February 2025 snapshot. Medians move, insurance markets are shifting quickly in storm-exposed states, and tax rates change. Treat the comparison as a framework rather than current data.
The Las Vegas figures are the ones we update — current median price, price per square foot, inventory and days on market are published monthly in the Las Vegas housing market hub.
If you are considering moving capital between markets, the mechanics matter as much as the destination: see 1031 exchanges.
Market comparison FAQ
What should I compare when choosing a market to invest in?
Purchase price is only the entry fee. The figures that decide your return are annual property taxes, insurance cost, rental demand, population growth and disaster exposure. A cheaper market with $12,000 of annual taxes and insurance can net less than a pricier one with $3,600.
Why do Texas and Florida have such high carrying costs?
Different reasons. Texas has no state income tax and funds itself substantially through property taxes, so the annual bill is high relative to the purchase price. Florida's problem is insurance, driven by hurricane and storm exposure — and in some coastal areas the issue is not the premium but whether cover can be obtained at all.
What are the carrying costs of a Las Vegas investment property?
At the time of comparison, insuring a median-priced Las Vegas home ran roughly $1,300 a year with property taxes around $2,300 — roughly $3,600 combined, against about $12,600 for a comparable Houston property. Nevada's assessment method and its cap on annual increases both contribute.
Is Las Vegas safe from natural disasters?
It has no hurricane exposure and no coastal storm risk, which is the main advantage over Gulf and Atlantic markets. It is not risk-free. Nevada is seismically active, though Las Vegas has not experienced the damaging events California has, and summer monsoon storms cause localised flash flooding. Flood risk is parcel-specific, so check FEMA maps for any address you are considering.
Which market is best for appreciation?
Of the six compared, Nashville showed the strongest appreciation case, driven by sustained population growth and rising values — with the trade-off of a high entry price that puts it out of reach for some investors. It suits a long-horizon buyer more than one who needs the property to perform immediately.
Which market is best for short-term rentals?
Tampa and Miami showed the strongest short-term rental demand in this comparison, on tourism volume and international interest — set against hurricane exposure, high insurance and elevated maintenance costs. Short-term rental regulation varies sharply by jurisdiction and changes, so confirm the current rules locally before buying on that basis.
Comparing Las Vegas against another market?
If you are weighing a purchase here against Dallas, Tampa or anywhere else, the useful exercise is running the full carrying cost on a specific property rather than comparing medians. Happy to put real numbers against it.
Related: evaluating a rental property, investing strategies that still work, is it too late to invest, and property manager or self-manage.
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Jim Fong · NV license BS.0068736 · The Jim Fong Group at Real Broker · 702-997-2050
General information only, not investment or tax advice. All figures are approximate and reflect a February 2025 comparison; medians, tax rates and insurance costs change continually and vary by property. Verify current local data before making any investment decision.