Looking to invest in Oregon rental property but not sure which cities will give you the best return? We’re here to help. At ABL, we’ve helped countless investors statewide analyze markets and buy rental property with our DSCR loan program.
Whether you’re a brand-new investor or a seasoned pro, we’ll help you identify profitable Oregon real estate and secure fast financing to get your next deal off the ground.
What to Look For In a Rental Market
When comparing different Oregon cities to invest in, consider the following metrics:
Median rental yield
Rental yield measures a property’s annual rental income as a percentage of its value (annual rent / property value = rental yield). The higher the rental yield, the more profitable the property.
Percentage of renters
The percentage of residents who are renters (as opposed to homeowners) is a good indicator of your potential tenant pool.
Population growth
A growing population drives up housing demand, putting upward pressure on home values and rental rates.
Annual appreciation rate
As a buy-and-hold investor, you want your property to appreciate over time so you can raise rents and turn a profit if you ever sell or refinance.
Median days on market
Median days on market measures the median number of days properties are listed for sale. The higher the number, the more negotiation power you have as a buyer.
Here are the best five Oregon cities to buy rental property:
1. Klamath Falls
| Median rental yield | 4.48% |
| Percentage of renters | 51.8% |
| Population growth | 1.8% |
| Annual appreciation rate | 3.29% |
| Median days on market | 73 |
Located near Oregon’s southern border, Klamath Falls is a small city with a population of 22,174. With a median rent of $962 and a median home value of $257,400, the city has a rental yield of 4.48%, the fourth-highest rate among Oregon’s metro- and micropolitan areas.
Meanwhile, Klamath Falls is one of the fastest-growing cities in Oregon, boosting long-term housing demand. And yet, homes have been sitting on the market for a median of 73 days, making now a good time for buyers to negotiate favorable deals.
2. La Grande
| Median rental yield | 4.77% |
| Percentage of renters | 49.6% |
| Population growth | 0.3% |
| Annual appreciation rate | 12.70% |
| Median days on market | 70 |
Nested between Umatilla National Forest and Wallowa-Whitman National Forest, La Grande is a small city of 13,058 residents. It has the second-highest rental yield across Oregon’s metro- and micropolitan areas (4.77%) and the fourth-highest annual appreciation rate (12.70%).
As a result, buying rental property in La Grande could open the door to positive cash flow on top of high profit margins if and when you resell or refinance.
3. Roseburg
| Median rental yield | 4.57% |
| Percentage of renters | 47.0% |
| Population growth | 0.6% |
| Annual appreciation rate | 10.70% |
| Median days on market | 63 |
Roseburg is the most populous city in Douglas County, Oregon, with 23,795 residents. It also has a median rent of $1,015 and a median home value of $266,000, resulting in a rental yield of 4.57%, the third highest rate statewide.
Furthermore, Roseburg’s home values rose by 10.70% over the last year, which means landlords may be able to raise rents to boost their returns.
4. Baker City
| Median rental yield | 4.28% |
| Percentage of renters | 27.4% |
| Population growth | 0.4% |
| Annual appreciation rate | 16.69% |
| Median days on market | 104 |
Baker City is a small city off of Interstate 84 in north-eastern Oregon. Though it only has a population of 10,135, housing demand is growing. Over the last year, median home listing prices increased by 16.69%, the second-highest rate statewide.
At the same time, homes are sitting on the market for a median of 104 days, so if you find an attractive rental property, consider negotiating a deal now while home sales are moving slowly.
5. Salem
| Median rental yield | 4.15% |
| Percentage of renters | 44.3% |
| Population growth | 2.8% |
| Annual appreciation rate | 7.10% |
| Median days on market | 51 |
With a population of 180,406, Salem is the largest city on our list. It’s also one of the fastest-growing. From April 1, 2020, to July 1, 2024, its population grew by 2.8%. This has helped push the city’s property values up by 7.10% over the last year.
Meanwhile, the city has a relatively high rental yield of 4.15% with a median rent of $1,323 and a median home value of $382,400. These figures, coupled with the city’s large potential tenant pool, make Salem an attractive choice to buy rental property.
Invest in Oregon Rental Property with ABL
Now that you know which Oregon cities hold the most potential for rental investors, it’s time to secure financing. The right rental loan can help you beat your competition to the closing table and boost your returns. Pre-qualify for a DSCR rental loan from ABL today.
Methodology
To determine the top Oregon markets to buy rental property, we ranked all twenty of the state’s metropolitan and micropolitan statistical areas by highest median rental yield, highest percentage of renters, fastest population growth, highest annual appreciation rate, and highest median days on market. Each category was weighted equally to arrive at a composite score for each city.
We used the following data sources:
- Median rental yield: Median gross rent, 2019-2023, and median value of owner-occupied housing units, 2019-2023, from the U.S. Census Bureau
- Percentage of renters: Renter-occupied housing unit rate, 2019-2023, from the U.S. Census Bureau
- Population growth: Percent change between April 1, 2020, to July 1, 2024, from the U.S. Census Bureau
- Annual appreciation rate: April 2025 median listing price year-over-year change from Realtor.com® Economic Research
- Median days on market: April 2025 median days on market from Realtor.com® Economic Research
- City populations: July 1, 2024, population estimate from the U.S. Census Bureau