Positive cash flow — where monthly rental income exceeds all expenses including mortgage — is increasingly rare in high-cost markets but still achievable with the right ZIP code selection and purchase structure.

The Cash Flow Screen

Before running a full model, screen for cash flow potential using the quick rule: if gross yield is below 5%, the property is unlikely to cash flow positively at 20–25% down in 2025. Use ZipMarketData to screen gross yields across ZIP codes in your target region.

Target: Gross Yield > 6% for positive cash flow at 20% down, 7% rate # Screen for high-yield ZIPs via API import requests KEY = "your_key" top_yield_zips = [] for zip_code in my_target_zips: d = requests.get("https://zipmarketdata.com/rental-yield", params={"zip_code": zip_code, "bedrooms": 2}, headers={"x-rapidapi-proxy-secret": KEY}).json() if d.get("gross_yield_pct", 0) >= 6.0: top_yield_zips.append(d)

Best States for Cash Flow Properties

  • Tennessee — No state income tax; landlord-friendly laws; strong cash flow in Memphis and smaller cities
  • Indiana — Low property taxes; strong renter demand in Indianapolis and secondary cities
  • Ohio — Affordable entry prices; diverse economies in Columbus, Cleveland, Cincinnati
  • Missouri — Kansas City and St. Louis offer excellent yield profiles
  • Alabama — Huntsville and Birmingham offering sub-$200K entry with 6–8% yields