National rent growth looks fairly ordinary in 2026—until you stop looking at the national average.

Typical U.S. asking rent increased 2.2% year over year in June, according to Zillow’s June 2026 Rent Report. Yet rents rose more than twice that quickly in several large metropolitan markets, led by San Francisco at 8.2%.

At the same time, some of the high-growth Sun Belt markets that dominated investor conversations earlier in the decade have flat or declining rents.

That reversal is important if you own rental property, are considering a new acquisition or manage apartments for other investors.

The fastest-growing rental markets in 2026 are concentrated much more heavily in California, the Northeast and Midwest than many investors might expect.

Rent growth alone does not make any of these markets a good investment. High purchase prices can overwhelm higher rents, while taxes, regulations, insurance and operating costs can change the economics considerably.

But rent momentum tells you something important about the balance between rental demand and available supply.

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How We Ranked the Fastest-Growing Rental Markets

The rankings use the Zillow Observed Rent Index, or ZORI, for June 2026.

ZORI measures changes in asking rents while controlling for changes in the quality of rental properties available at different times. Zillow calculates the index using repeated rental listings and weights the data using U.S. Census information so that the index better reflects the overall rental market.

That distinction matters.

If a city happens to have more luxury apartments advertised this month than last month, a simple median asking-rent comparison can rise even if rents on comparable properties did not. A repeat-rent index is designed to reduce that distortion.

We ranked the 50 largest metros by year-over-year ZORI growth and then reviewed Realtor.com’s June 2026 Rental Report for advertised-rent trends and multifamily construction activity.

The two datasets do not always produce identical percentages because their methodologies and rental samples differ. That disagreement is useful information rather than a reason to choose whichever number looks better.

Rent Growth at a Glance

Market	YoY Rent Growth	Typical Rent	Concessions
San Francisco, CA	8.2%	$3,301	24.9%
San Jose, CA	6.2%	$3,729	23.7%
Virginia Beach, VA	5.5%	$1,878	21.8%
Chicago, IL	5.2%	$2,275	23.3%
New York, NY	4.5%	$3,573	17.2%
Milwaukee, WI	4.2%	$1,552	18.3%
St. Louis, MO	4.0%	$1,459	28.9%
Cleveland, OH	4.0%	$1,474	24.7%
Philadelphia, PA	3.6%	$1,928	31.8%
Pittsburgh, PA	3.6%	$1,523	25.8%

Source: Zillow Observed Rent Index, June 2026. Philadelphia and Pittsburgh are tied at 3.6%.

1. San Francisco, California: Rent Growth Reaches 8.2%

San Francisco leads the country’s 50 largest rental markets by a substantial margin.

Zillow reported typical rent of approximately $3,301 in June, up 8.2% year over year. Only 24.9% of Zillow rental listings offered concessions, considerably below the 39.7% national rate.

That combination—rapid rent growth and fewer concessions—suggests landlords have regained more pricing power than in many other large markets.

Realtor.com independently reported annual rent growth in the San Francisco-Oakland-Fremont metro, although at a more modest 1.9%. Its construction data also show only 1.1 multifamily units permitted per 1,000 residents in 2025.

For an existing landlord, rising rents combined with limited new supply can be encouraging.

For a prospective investor, San Francisco presents a much harder question. High rent does not automatically compensate for very high acquisition costs, regulatory complexity and operating expenses.

San Francisco ranks first because rents are rising fastest—not because it necessarily offers the country’s best investment returns.

2. San Jose, California: High Rents Keep Moving Higher

San Jose is already the most expensive rental market in the top 10, yet rents are still climbing rapidly.

Zillow’s typical June rent reached approximately $3,729, up 6.2% from a year earlier. Only 23.7% of rental listings offered concessions.

This is one market where the direction is particularly well supported across sources.

Realtor.com reported 3.3% annual rent growth to $3,423, the highest San Jose asking rent in its dataset dating to 2019. Realtor.com’s researchers connected the stronger rental demand in part with the Bay Area’s artificial-intelligence-driven economic expansion.

Supply deserves watching. Multifamily permitting increased to 1.8 units per 1,000 residents in 2025, up significantly from the previous year.

That additional construction could eventually relieve some rent pressure.

For an investor, San Jose demonstrates why rent growth and rental yield should never be confused. A property can operate in one of America’s strongest rental-demand environments and still produce a weak return if the acquisition price is too high.

3. Virginia Beach, Virginia: Strong Growth With Few Concessions

Virginia Beach offers a different profile from the two California leaders.

Typical Zillow rent was approximately $1,878 in June, up 5.5% year over year. That is much closer to the national rent level than San Francisco or San Jose.

Only 21.8% of listings offered concessions, one of the lowest shares among the 50 major metros Zillow tracks.

Realtor.com also recorded positive rent growth in the broader Virginia Beach-Chesapeake-Norfolk market, with advertised rents up 2% year over year.

The supply numbers are particularly interesting.

Realtor.com reports only 0.4 multifamily units permitted per 1,000 residents in 2025. That is among the lowest construction rates in the major metros included in its report.

Limited new apartment supply does not guarantee continuing rent increases, but it removes one pressure that has weighed heavily on rents in faster-building markets.

For investors evaluating Virginia Beach, the next questions should be purchase price, neighborhood-level tenant demand and property-specific operating costs.

4. Chicago, Illinois: A Large Rental Market Regains Pricing Power

Chicago’s inclusion near the top may surprise investors accustomed to seeing fast-growing Sun Belt cities dominate rental-market rankings.

Zillow reported typical rent of approximately $2,275, up 5.2% year over year.

Only 23.3% of rental listings offered concessions.

Realtor.com independently found Chicago rents increasing, although by a smaller 1.3% annual rate. It also reported just 0.6 new multifamily units permitted per 1,000 residents in 2025.

The combination is notable: a huge established renter base, relatively restrained construction and rising market rents.

Chicago also appeared in our broader Top Rental Property Markets for 2026 report because mature rental markets can sometimes provide opportunities that high-growth markets do not.

None of this eliminates Chicago’s challenges. Property taxes, local regulation, building age and neighborhood-level differences can materially affect returns.

But 5.2% rent growth makes the city difficult to dismiss simply because it lacks the population-growth narrative associated with many Sun Belt metros.

5. New York, New York: Limited Supply Meets High Demand

New York combines some of the country’s highest rents with continued rent growth.

Zillow’s typical June rent was approximately $3,573, up 4.5% year over year.

Only 17.2% of rental listings offered concessions, one of the lowest rates among the major metros tracked by Zillow.

Realtor.com also found rents increasing, reporting a 1.7% year-over-year gain in its New York-Newark-Jersey City measure.

Supply remains an important part of the story. Realtor.com’s analysis found multifamily permitting at only 1.6 units per 1,000 residents in 2025, with the permit rate falling to its lowest level since 2019.

A constrained pipeline can support rent pressure when demand remains strong.

For investors, however, New York is another market where strong rental fundamentals do not automatically translate into an attractive acquisition.

Entry prices, taxes, operating costs and extensive rental regulation require far more detailed analysis than a rent-growth ranking can provide.

6. Milwaukee, Wisconsin: Moderate Rents, Faster Growth

Milwaukee may be more relevant to income-oriented investors than the expensive coastal markets at the top of the ranking.

Zillow placed typical rent at approximately $1,552 in June, up 4.2% from the previous year.

Only 18.3% of rental listings offered concessions.

Realtor.com’s advertised-rent measure also remained positive, although at just 0.3% year over year. Its multifamily permit rate was 0.7 units per 1,000 residents in 2025.

Milwaukee illustrates a recurring theme in the 2026 data: several mature Midwestern markets are seeing stronger rent momentum while many high-construction Sun Belt markets have flattened.

That does not mean investors should chase the entire metro.

Older housing stock can require more capital spending, while property taxes and neighborhood conditions vary significantly.

The attraction is the combination worth investigating: lower typical rents than the coastal leaders, relatively modest new construction and rental prices that are still moving upward.

7. St. Louis, Missouri: Rent Growth With a Data Warning

Zillow reported typical St. Louis rent of approximately $1,459, up 4% year over year.

That puts St. Louis in a tie with Cleveland for seventh place.

The market also offers a much lower typical rent level than the coastal markets higher on the list, which often corresponds with a lower acquisition price environment.

But St. Louis demonstrates why we cross-checked the ranking.

Realtor.com’s June data show its measure of advertised rent falling 1.4% year over year, not rising. The company also reported a low multifamily permit rate of 0.5 units per 1,000 residents.

The conflicting rent direction does not mean either dataset is necessarily wrong.

ZORI adjusts for changes in the mix of available rentals and tracks repeat observations. Realtor.com’s measure covers currently advertised studios through two-bedroom rentals from sources that report consistently each month.

For investors, the disagreement is a reason to dig deeper.

Before underwriting aggressive rent growth in St. Louis, compare actual leases and current competing rentals in the neighborhood where you intend to buy.

8. Cleveland, Ohio: Another Midwest Market Worth Watching

Cleveland’s typical Zillow rent reached approximately $1,474 in June, up 4% year over year.

Only 24.7% of Zillow listings offered concessions.

Like St. Louis, however, Cleveland receives a more cautious signal from Realtor.com, whose advertised-rent measure was down 1% year over year.

Supply may also be beginning to change.

Cleveland’s 2025 multifamily permit rate reached 0.6 units per 1,000 residents, its highest rate since at least 2019 according to Realtor.com’s analysis of Census permit data. The absolute level remains relatively low, but the direction bears watching.

The U.S. Census Bureau’s Building Permits Survey provides monthly and annual residential-construction statistics down to metro, county and local levels, making new supply an important second screen for any rent-growth analysis.

Cleveland therefore belongs on this ranking based on the ZORI data, but the market deserves more localized validation before an investor assumes 4% rent growth will continue.

9. Philadelphia, Pennsylvania: Strong ZORI Growth, Mixed Supporting Data

Philadelphia recorded 3.6% annual ZORI growth, putting it in a tie with Pittsburgh.

Typical rent reached approximately $1,928, while 31.8% of Zillow rental listings offered concessions.

That concession share is noticeably higher than in several markets above it. It suggests tenants still have negotiating options even while Zillow’s quality-adjusted rent index is moving higher.

Realtor.com adds another reason for caution. Its June advertised-rent measure was down 1.8% from the previous year.

Again, those measurements are not directly interchangeable.

Philadelphia’s multifamily permit rate was also relatively low at 0.8 units per 1,000 residents in 2025.

For investors, Philadelphia’s inclusion is less about declaring that every rent measure is accelerating and more about recognizing a meaningful signal from Zillow’s repeat-rent data.

Use that signal to decide where to investigate—not what rent to enter automatically into your investment model.

10. Pittsburgh, Pennsylvania: Two Sources Point Upward

Pittsburgh ties Philadelphia with 3.6% year-over-year ZORI growth, but its supporting data are stronger.

Typical Zillow rent was approximately $1,523 in June, with 25.8% of listings offering concessions.

Realtor.com separately reported Pittsburgh asking rents up 2.8% year over year, making it one of the markets where both major datasets point clearly in the same direction.

New multifamily supply also remains moderate. Realtor.com calculated a 2025 permit rate of 0.9 units per 1,000 residents.

For investors, Pittsburgh’s combination deserves attention because the rent level remains far below the expensive coastal markets at the top of the ranking.

That does not tell you the rental yield. You still need the purchase price.

But when two differently constructed rental datasets show rising rents and the new-construction pipeline remains measured, you have a stronger reason to investigate whether particular neighborhoods can support continued rental demand.

The Geography of Rent Growth Has Changed

One of the most useful findings in this report is what doesn’t appear near the top.

Austin’s ZORI was down 1.7% year over year in June. San Antonio fell 1.8%. Denver declined 1.3%, while Tampa was down 0.7%. Houston was essentially flat at -0.1%, and Dallas showed no annual growth.

These were among the markets where developers added substantial rental supply after the pandemic-era population and rent surge.

Nationally, Zillow reports a growing divide between property types as well.

Single-family rents increased 3% year over year, roughly twice the 1.5% growth for multifamily rentals.

That distinction matters if you own or are evaluating houses rather than large apartment properties.

A metro’s overall ZORI can tell you the direction of the rental market, but your property type may behave differently.

Why New Supply Belongs in Your Rent Analysis

Rent growth does not occur independently of construction.

When developers deliver thousands of new apartments into a market, tenants gain alternatives. Owners may respond with slower rent increases, free months, reduced deposits or other concessions.

When construction slows while demand holds, that pressure can eventually reverse.

Realtor.com’s June analysis found that 302,730 units in projects of five units or more received permits across the 50 largest metros during 2025. That was slightly higher than 2024 but still 34.4% below the 2022 peak.

The Census Building Permits Survey confirms that detailed permit information is available by metropolitan area and other local geographies.

That makes supply one of the better forward-looking checks you can place alongside current rent growth.

A market with rising rents and limited construction presents a different supply picture from one where rents are rising while thousands of new units move through the development pipeline.

Concessions Can Tell You What the Rent Number Misses

Headline rent is only one measure of landlord pricing power.

Zillow reported concessions on 39.7% of U.S. rental listings in June.

That can include incentives such as free rent, reduced deposits or other offers designed to attract tenants.

The fastest-growing markets generally show lower concession rates.

San Francisco was at 24.9%. San Jose stood at 23.7%, Virginia Beach at 21.8%, Chicago at 23.3% and New York at only 17.2%.

That supports the idea that rent growth in those markets reflects comparatively tighter conditions.

Investors should still distinguish asking rent from effective rent.

If an apartment is advertised at $2,000 per month but the tenant receives one month free on a 12-month lease, the economic rent is lower than the headline figure suggests.

When you analyze potential acquisitions, examine both.

What Faster Rent Growth Does—and Does Not—Tell You

A rising rent index can improve the revenue side of an investment, but it says nothing directly about the price you must pay to acquire the property.

Consider San Jose.

Its 6.2% annual rent growth is impressive, but a very expensive property can still produce a lower yield than a property in a slower-growth market with a much lower acquisition cost.

The same principle works in reverse.

A market with only 2% rent growth may provide an attractive investment if the purchase price, expenses and financing create sufficient cash flow.

Before buying in any of these fastest-growing rental markets, compare at least:

• Purchase price
• Achievable property-specific rent
• Rent-to-price relationship
• Vacancy
• Property taxes
• Insurance
• Maintenance
• Capital expenditures
• Property management
• Local landlord-tenant regulation
• New rental construction
• Financing costs

Then test the investment without assuming the recent rent-growth rate continues.

An 8% rent increase this year does not mean you should put 8% annual increases into a five-year projection.

Use Rent Growth as a Signal, Not a Forecast

The fastest-growing rental markets in 2026 tell a different story from the one investors heard during the pandemic housing boom.

San Francisco and San Jose lead the country. Virginia Beach sits third. Chicago, Milwaukee, Cleveland, St. Louis and Pittsburgh put the Midwest and older eastern markets firmly into the discussion.

Meanwhile, several high-profile Sun Belt rental markets are showing little growth or outright declines.

That shift is useful because it reminds you not to invest from an outdated market narrative.

Use current rent data to identify where rental conditions are changing. Compare those trends with new supply, concessions, purchase prices and operating costs. Then move from metro-level data to neighborhood and property-level underwriting.

The strongest rental investment will not necessarily be in the market where rents rose fastest last year.

It will be where the income you can realistically collect justifies the price and risk you take to own the property.