Analyze Rental Comps & Market Trends•Look at recent rental comps in the community—not just those from a year ago, but the most recent listings with similar size, layout, and features.

Hi @Konstantinos Lembesis When Settling on a market develop some metrics that you can not only measure the market you are interested in but others that you havn't considered yet. 

I’m looking to invest out of my home state, Texas, and have narrowed it down to 3 markets.

Quote from @Marc Zak: In the market where I live (San Diego), appreciation has been strong and many predict it will continue to appreciate in the long term.However, with current interest rates (6% at best) and property tax (2%), the annual cost burden is 8%.Am I correct in saying that appreciation has to be above 8% annually (plus whatever my maintenance and vacancy costs are) for me to make any money in this scenario if the property is cash flow neutral?

I would always lean towards markets that are landlord-friendly. 

We manage several hundred rental properties throughout the San Diego market and I found your post very interesting. 

It works...but any marketing works, it just depends. 

Market forces are pushing and pulling but not a source of anything breaking.

The high appreciation market will be the higher cash flow market over the hold.  

Some general pros v cons - I'm sure other people will provide other insights as wellPros: -Above market rents- Monthly rent payment on time that you don't have to worry about or chase anyone down for (if full pay)- No shortage of tenants depending on your standards - Tenants are incentivized to not trash/destroy the unit, otherwise they'll lose their voucher (Yearly inspections made by local S8 inspectors to keep everyone honest- Rental payouts are normally adjusted 1-2 times a year to keep up with market rentsCons:- May take a little while to get onboarded - dealing with local govt can always take longer than expected   - Generally won't have a super high credit score (to be expected given it's the govt paying for rent)- Each unit will need to be inspected and meet a certain living standard in order to be approved for fundingYou'll want to make sure you work with a property manager who has extensive experience in working with S8.