Key Takeaways
- Expert insights on best states for landlords 2026
- Actionable strategies you can implement today
- Real examples and practical advice
Best States for Landlords in 2026: 10 States Ranked by Laws, Taxes, and Profitability
Where you invest matters as much as what you buy. Two identical rental properties — same price, same rent, same condition — can produce wildly different returns depending on the state they're in. Eviction timelines, property tax rates, insurance costs, rent control laws, and tenant protection statutes vary dramatically across the U.S., and these factors directly impact your bottom line.
This guide ranks the 10 best states for landlords in 2026 using a composite score across five key factors. If you're choosing between markets, this data should inform your decision.
Scoring Methodology
Each state receives a score from 1–10 across five categories, weighted by their impact on long-term rental profitability:
| Factor | Weight | What We Measured |
|---|---|---|
| Eviction Timeline | 25% | Average days from filing to possession |
| Tenant Protection Index | 20% | Rent control, required notice periods, security deposit limits |
| Property Tax Rate | 20% | Effective rate as % of market value |
| Insurance Costs | 15% | Average annual premium for rental SFR |
| Regulatory Burden | 20% | Licensing requirements, habitability codes, litigation risk |
Higher composite scores = better for landlords.
The 10 Best States for Landlords in 2026
1. Texas — Composite Score: 9.1/10
Texas is the gold standard for landlord-friendly investing in 2026.
Eviction Timeline: 21–28 days Texas [eviction process](/blog/how-to-handle-eviction) is among the fastest in the country. After a 3-day notice to vacate, landlords can file a forcible detainer suit in Justice Court. Hearings are typically scheduled within 10–14 days, and writs of possession follow 5 days after judgment. Total timeline from notice to lockout: 3–4 weeks.
Tenant Protections: Minimal
- No statewide rent control (and state law preempts local rent control ordinances)
- No mandatory lease renewal requirements
- Security deposits: No statutory limit; must return within 30 days
- No required "just cause" for non-renewal at lease end
- Landlords can charge any application fees they choose
Property Taxes: 1.60%–2.10% This is Texas's Achilles' heel. Effective property tax rates are among the highest in the nation, varying by county (Harris County: 1.9%, Bexar County: 1.8%, Dallas County: 1.8%). However, the absence of [state income tax](/blog/states-with-no-income-tax-investing) (0%) partially offsets this for investors who live in Texas.
Insurance: $1,800–$2,600/year Moderate, though coastal and Gulf properties can see premiums of $3,500+ due to hurricane risk.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 21–28 days |
| Rent control | Prohibited statewide |
| Security deposit limit | None |
| Property tax (effective) | 1.60%–2.10% |
| State income tax | 0% |
| Insurance (avg. SFR) | $2,100 |
2. Indiana — Composite Score: 8.8/10
Indiana combines fast evictions, low property taxes, and minimal regulation into an investor-friendly package.
Eviction Timeline: 21–35 days Indiana allows a 10-day notice for non-payment. After filing, courts typically schedule hearings within 7–14 days. Judgment is usually entered the same day as the hearing, with a writ of possession issued within 48 hours.
Tenant Protections: Minimal
- No rent control at any level
- Security deposits: No statutory limit
- No required "good cause" for eviction at lease end
- Landlords can enter with "reasonable notice" (no specific timeframe mandated)
- No mandatory relocation assistance
Property Taxes: 0.81% Indiana's property tax assessment system and constitutional cap of 1% for homesteads (2% for rental) keeps rates manageable. The 2% cap on rental properties is among the lowest effective rates in the Midwest.
Insurance: $1,200–$1,800/year Among the most affordable in the country due to low natural disaster risk (minimal hurricane, earthquake, or wildfire exposure).
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 21–35 days |
| Rent control | None |
| Security deposit limit | None |
| Property tax (effective) | 0.81% |
| State income tax | 3.05% (flat) |
| Insurance (avg. SFR) | $1,450 |
3. Georgia — Composite Score: 8.6/10
Georgia's streamlined dispossessory process and affordable insurance make it a top-tier landlord state.
Eviction Timeline: 14–30 days Georgia's dispossessory process is remarkably efficient. After a demand for possession (no minimum notice required for non-payment), landlords file an affidavit in Magistrate Court. Hearings are scheduled within 7–14 days. If the tenant fails to answer within 7 days, a default judgment and writ of possession follow quickly.
Tenant Protections: Minimal
- No rent control
- No mandatory lease renewal
- Security deposits: No statutory limit (but must be held in escrow for 10+ units)
- No "just cause" eviction requirement
- Landlords can retain security deposit for any lease violation with proper itemization
Property Taxes: 0.83% Georgia's effective rates are favorable, though they vary by county (Fulton County/Atlanta: ~1.0%, Cobb County: ~0.9%, Chatham County/Savannah: ~0.95%).
Insurance: $1,400–$2,200/year Moderate, though coastal Georgia (Savannah, Brunswick) sees higher premiums due to hurricane risk.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 14–30 days |
| Rent control | None |
| Security deposit limit | None |
| Property tax (effective) | 0.83% |
| State income tax | 5.39% (flat, as of 2024 reform) |
| Insurance (avg. SFR) | $1,750 |
4. Alabama — Composite Score: 8.5/10
Alabama offers the lowest all-in costs on this list.
Eviction Timeline: 14–28 days Alabama's Unlawful Detainer Act provides for a 7-day notice for non-payment. Court filings are processed quickly in District Court, with hearings typically within 7–14 days. The entire process from notice to possession averages under 4 weeks.
Tenant Protections: Minimal
- No rent control
- Security deposits: Limited to one month's rent
- No "just cause" requirement for non-renewal
- Landlord repair obligations are limited to "material health and safety" issues
- Alabama is one of the few states that does not have an [implied warranty of habitability](/blog/landlord-tenant-law-basics) statute (though case law has established some protections)
Property Taxes: 0.37% The lowest effective property tax rate of any state on this list. Alabama assesses property at 10% of market value for Class III (commercial/rental) property, and millage rates are moderate.
Insurance: $1,600–$2,400/year Higher than neighboring Georgia due to tornado and severe storm exposure, particularly in northern Alabama.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 14–28 days |
| Rent control | None |
| Security deposit limit | 1 month's rent |
| Property tax (effective) | 0.37% |
| State income tax | 2%–5% (graduated) |
| Insurance (avg. SFR) | $1,900 |
5. Florida — Composite Score: 8.3/10
Florida's combination of population growth, no income tax, and landlord-friendly laws makes it perennially attractive.
Eviction Timeline: 21–45 days Florida requires a 3-day notice for non-payment (excluding weekends and holidays). After filing, courts in most counties schedule hearings within 14–21 days. Summary procedure is available, which can expedite contested cases. Total timeline averages 4–6 weeks.
Tenant Protections: Moderate
- No statewide rent control (state preemption since 1977, with limited emergency exceptions)
- Security deposits: No statutory limit; must be returned within 15–60 days depending on dispute
- No "just cause" eviction requirement for month-to-month leases
- Florida's [homestead exemption](/blog/homestead-exemption-guide) significantly benefits owner-occupants and house hackers
Property Taxes: 0.80%–1.10% Florida's homestead exemption ($50,000) reduces effective rates for owner-occupants. Non-homestead (investment) properties are assessed at full value, with effective rates averaging 0.98%.
Insurance: $2,800–$5,500/year This is Florida's biggest challenge. Post-2022 insurance reform has stabilized the market somewhat, but premiums remain among the highest in the nation, particularly in South Florida and coastal areas. Budget $3,500+ for a typical rental SFR.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 21–45 days |
| Rent control | Preempted statewide |
| Security deposit limit | None |
| Property tax (effective) | 0.98% (non-homestead) |
| State income tax | 0% |
| Insurance (avg. SFR) | $3,800 |
6. Tennessee — Composite Score: 8.2/10
Tennessee combines fast evictions, no state income tax, and moderate costs.
Eviction Timeline: 14–30 days Tennessee's Uniform Residential Landlord and Tenant Act (URLTA) provides for a 14-day notice for non-payment (with 14 days to cure). If the tenant fails to cure, the landlord can file a detainer warrant. Hearings in General Sessions Court are typically scheduled within 6–10 days. For non-payment cases where no cure occurs, total timeline is 3–4 weeks.
Tenant Protections: Minimal
- No rent control
- Security deposits: No statutory limit (deposits exceeding one month must be held in a separate account)
- No "just cause" requirement
- Tennessee law allows landlords to retain the entire security deposit if the tenant fails to provide a forwarding address within 30 days
Property Taxes: 0.56% Tennessee assesses residential property at 25% of appraised value. Combined with moderate millage rates, effective tax rates are among the lowest in the Southeast.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 14–30 days |
| Rent control | None |
| Security deposit limit | None |
| Property tax (effective) | 0.56% |
| State income tax | 0% |
| Insurance (avg. SFR) | $1,850 |
7. Arizona — Composite Score: 8.0/10
Arizona's Residential Landlord and Tenant Act is clear, balanced, and efficiently enforced.
Eviction Timeline: 17–30 days Arizona requires a 5-day notice for non-payment. After filing a Special Detainer action in Justice Court, hearings are set within 3–6 days. If judgment is entered, the tenant has 5 days to vacate before a writ of restitution is issued. Efficient courts in Maricopa County (Phoenix metro) can complete the process in under 3 weeks.
Tenant Protections: Moderate
- No rent control (state preemption statute)
- Security deposits: Limited to 1.5 months' rent
- Landlords must return deposits within 14 days
- AZ requires landlords to make reasonable efforts to re-rent (duty to mitigate)
- Strong habitability requirements, but clearly defined
Property Taxes: 0.51% Arizona's effective rates are among the lowest in the West, thanks to a 10% assessment ratio for residential property.
Insurance: $1,400–$2,000/year Low natural disaster risk (no hurricanes, minimal flooding in most areas) keeps premiums affordable.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 17–30 days |
| Rent control | Preempted statewide |
| Security deposit limit | 1.5 months' rent |
| Property tax (effective) | 0.51% |
| State income tax | 2.5% (flat) |
| Insurance (avg. SFR) | $1,650 |
8. North Carolina — Composite Score: 7.9/10
North Carolina's growing population and balanced landlord-tenant laws attract investors.
Eviction Timeline: 21–35 days NC requires a 10-day notice for non-payment. Summary ejectment filings in Small Claims Court are heard within 7–14 days. If appealed, the case moves to District Court, which can extend the timeline to 30–45 days — but most non-payment cases are resolved at the summary level.
Tenant Protections: Moderate
- No rent control
- Security deposits: Limited to 1.5 months' rent (for month-to-month) or 2 months' rent (for leases > 2 months)
- Deposits must be held in a trust account
- No "just cause" eviction requirement
- NC does not require landlords to mitigate damages
Property Taxes: 0.70% Reasonable rates that vary by county (Wake County: ~0.75%, Mecklenburg County: ~0.82%, Guilford County: ~1.0%).
Insurance: $1,500–$2,500/year Coastal NC (Outer Banks, Wilmington) sees significantly higher premiums. Inland markets like Charlotte and Raleigh remain affordable.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 21–35 days |
| Rent control | None |
| Security deposit limit | 1.5–2 months' rent |
| Property tax (effective) | 0.70% |
| State income tax | 4.5% (flat) |
| Insurance (avg. SFR) | $1,850 |
9. Arkansas — Composite Score: 7.8/10
Arkansas's Criminal Eviction statute gives landlords unique leverage — though it's controversial.
Eviction Timeline: 10–20 days Arkansas is one of the few states where failure to pay rent can be treated as a criminal matter (A.C.A. § 18-16-101). While this provision has faced legal challenges, it remains on the books as of 2026. Even through civil channels, evictions in Arkansas are fast — a 3-day notice followed by Unlawful Detainer proceedings in District Court can result in possession within 2–3 weeks.
Tenant Protections: Minimal
- No rent control
- No statutory security deposit limit
- No implied warranty of habitability (Arkansas is one of the last states without this statutory protection)
- No mandatory lease renewal
- Limited disclosure requirements
Property Taxes: 0.57% Among the lowest in the nation. Assessment ratios of 20% and moderate millage rates keep the effective burden manageable.
Insurance: $1,800–$2,600/year Tornado and severe storm exposure increases premiums in central and western Arkansas.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 10–20 days |
| Rent control | None |
| Security deposit limit | None |
| Property tax (effective) | 0.57% |
| State income tax | 2%–4.4% (graduated) |
| Insurance (avg. SFR) | $2,100 |
10. Mississippi — Composite Score: 7.6/10
Mississippi rounds out the list with the lowest overall operating costs in the country.
Eviction Timeline: 14–30 days Mississippi's eviction process begins with a 3-day notice for non-payment. Filing in Justice Court initiates proceedings, with hearings typically set within 7–10 days. After judgment, a writ of possession is issued within 5 days. Total timeline averages 3–4 weeks.
Tenant Protections: Minimal
- No rent control
- Security deposits: No statutory limit
- No "just cause" eviction requirement
- Mississippi's landlord-tenant law is minimal — the Mississippi Residential Landlord and Tenant Act (2024 update) provides basic framework but favors property owners
- No mandatory habitability inspections
Property Taxes: 0.63% Low assessment ratios (10% for residential) and moderate millage rates produce favorable effective rates.
Insurance: $2,000–$3,200/year Hurricane and severe weather risk elevate costs, particularly in the southern third of the state. Northern Mississippi (Oxford, Tupelo) sees lower premiums.
Key Stats:
| Metric | Value |
|---|---|
| Eviction timeline | 14–30 days |
| Rent control | None |
| Security deposit limit | None |
| Property tax (effective) | 0.63% |
| State income tax | 0%–5% (graduated, with $10K+ exemption) |
| Insurance (avg. SFR) | $2,400 |
Complete Comparison Table
| Rank | State | Eviction Days | Rent Control | Property Tax | Income Tax | Avg. Insurance | Score |
|---|---|---|---|---|---|---|---|
| 1 | Texas | 21–28 | Prohibited | 1.80% | 0% | $2,100 | 9.1 |
| 2 | Indiana | 21–35 | None | 0.81% | 3.05% | $1,450 | 8.8 |
| 3 | Georgia | 14–30 | None | 0.83% | 5.39% | $1,750 | 8.6 |
| 4 | Alabama | 14–28 | None | 0.37% | 2–5% | $1,900 | 8.5 |
| 5 | Florida | 21–45 | Preempted | 0.98% | 0% | $3,800 | 8.3 |
| 6 | Tennessee | 14–30 | None | 0.56% | 0% | $1,850 | 8.2 |
| 7 | Arizona | 17–30 | Preempted | 0.51% | 2.5% | $1,650 | 8.0 |
| 8 | North Carolina | 21–35 | None | 0.70% | 4.5% | $1,850 | 7.9 |
| 9 | Arkansas | 10–20 | None | 0.57% | 2–4.4% | $2,100 | 7.8 |
| 10 | Mississippi | 14–30 | None | 0.63% | 0–5% | $2,400 | 7.6 |
How State Laws Impact Your Returns: A Case Study
Let's compare the same property — a $150,000 3BR SFR renting for $1,200/month — across three different states:
Texas (Best-Case Landlord State)
| Expense | Annual Cost |
|---|---|
| Mortgage (7%, 25% down) | $8,981 |
| Property tax (1.8%) | $2,700 |
| Insurance | $2,100 |
| Maintenance (8%) | $1,152 |
| Vacancy (5%) | $720 |
| Management (10%) | $1,440 |
| Total expenses | $17,093 |
| Gross rent | $14,400 |
| Net cash flow | −$2,693 |
| Cash-on-cash (on $37,500 down) | −7.2% |
Wait — negative cash flow? Yes, on a $150K property with $1,200 rent in Texas, the high property taxes make cash flow tight. Texas works best with lower-priced properties or higher rents.
Indiana (Balanced Landlord State)
| Expense | Annual Cost |
|---|---|
| Mortgage (7%, 25% down) | $8,981 |
| Property tax (0.81%) | $1,215 |
| Insurance | $1,450 |
| Maintenance (8%) | $1,152 |
| Vacancy (5%) | $720 |
| Management (10%) | $1,440 |
| Total expenses | $14,958 |
| Gross rent | $14,400 |
| Net cash flow | −$558 |
| Cash-on-cash | −1.5% |
Closer to breakeven. Indiana's lower property taxes save $1,485/year compared to Texas.
Alabama (Lowest Cost Landlord State)
| Expense | Annual Cost |
|---|---|
| Mortgage (7%, 25% down) | $8,981 |
| Property tax (0.37%) | $555 |
| Insurance | $1,900 |
| Maintenance (8%) | $1,152 |
| Vacancy (5%) | $720 |
| Management (10%) | $1,440 |
| Total expenses | $14,748 |
| Gross rent | $14,400 |
| Net cash flow | −$348 |
| Cash-on-cash | −0.9% |
Alabama's rock-bottom property taxes bring the same property closest to cash flow positive. This illustrates why cost structure matters as much as rent levels.
The takeaway: State-level costs can swing your annual cash flow by $2,000+ on a single property. Across a 10-unit portfolio, that's $20,000/year — the difference between a profitable operation and a break-even hobby.
Factors Beyond the Rankings
1. LLC Protections
[Asset protection](/blog/real-estate-llc-guide) varies significantly by state. States like Texas, Florida, and Arizona offer strong charging-order protections for single-member LLCs. Georgia and North Carolina provide moderate protections. Always consult a [real estate attorney](/blog/how-to-build-real-estate-team) about entity structuring in your target state.
2. Local Ordinances Override State Law
Even in landlord-friendly states, individual cities may impose additional regulations. Austin, TX has specific tenant protections. Atlanta, GA has registration requirements. Always research city-level regulations in addition to state law.
3. Insurance Market Stability
Florida's insurance market, while improving since 2022 reforms, remains volatile. Carriers have exited and re-entered the market multiple times. In contrast, Midwest states like Indiana and Tennessee have stable, competitive insurance markets with multiple carrier options.
4. [Appreciation](/blog/home-appreciation-explained) vs. Cash Flow Trade-offs
The most landlord-friendly states from a regulatory standpoint (Alabama, Mississippi, Arkansas) tend to have the weakest appreciation. States with stronger growth trajectories (Texas, Florida, Arizona, North Carolina) offer appreciation upside but come with higher operating costs. Your strategy — cash flow vs. appreciation vs. hybrid — should guide your state selection.
The Bottom Line
The best state for your rental portfolio depends on your investment thesis. If you're optimizing for pure cash flow and minimal regulatory friction, Alabama, Indiana, and Tennessee are hard to beat. If you want appreciation upside with decent landlord protections, Texas, Florida, and Arizona offer the best balance.
Regardless of which state you choose, the critical insight is this: state-level laws and tax structures are not minor details — they are foundational cost factors that compound across your portfolio and over time. Model your pro formas with state-specific inputs, not national averages.
Data sources: State statutes and landlord-tenant codes (current as of January 2026), Tax Foundation effective property tax rates, Insurance Information Institute premium data, Nolo eviction timeline research. All timelines are averages and may vary by county and court backlog.
Related Articles
Get more content like this
Get daily real estate insights delivered to your inbox
Ready to Unlock Your Home Equity?
Calculate how much you can borrow in under 2 minutes. No credit impact.
Try Our Free Calculator →✓ Free forever • ✓ No credit check • ✓ Takes 2 minutes
