The Southeast continues to be a top region for multifamily investment, but rising property prices in major metros are pushing investors to look beyond Atlanta, Charlotte, and Nashville.
In 2025, secondary and emerging markets in states like Alabama, South Carolina, Kentucky, and Tennessee are seeing high population growth, job expansion, and strong rental demand, creating new opportunities for multifamily investors.
This article explores the top emerging multifamily markets in the Southeast, highlighting key investment metrics, rent growth trends, and long-term appreciation potential while comparing these markets to national averages.
Why Investors Are Targeting Emerging Markets
Major metro areas in the Southeast remain strong investment hubs, but smaller cities are attracting more renters and businesses due to:
- Lower cost of living
- Business-friendly policies
- Expanding infrastructure & job opportunities
- Higher cash flow potential compared to primary markets
Rent Growth in Emerging & Metro Southeastern Markets
The chart above highlights how emerging Southeast metros are outperforming the national average in rent growth:
- Huntsville (7.4%) , Atlanta (6.8%) and Nashville (6.5%) are leading in rent appreciation.
- Charlotte (6.1%) and Raleigh (5.8%) continue to see strong demand.
- Knoxville (5.2%) and Charleston (5.4%) are attractive due to affordability and job growth.
- The U.S. average rent growth is only 3.0%, making these Southeast metros highly competitive for investors.
Top Emerging Multifamily Markets in the Southeast
1. Huntsville, AL – The “Silicon Valley of the South”
- Job Growth: Major employers include NASA, Boeing, and tech startups.
- Rent Growth: 7.4% YOY increase, fueled by young professionals.
- Investment Potential: High cap rates and lower property prices than Birmingham.
2. Greenville, SC – Booming Industrial & Tech Hub
- Job Growth: Rapid expansion in manufacturing, logistics, and tech.
- Rent Growth: 5.4% YOY increase, supported by steady population growth.
- Investment Potential: High demand for Class B & C workforce housing.
3. Louisville, KY – A Rising Midwest-Southeast Hybrid
- Job Growth: Home to UPS, Humana, and Ford—a major logistics hub.
- Rent Growth: 3.5% YOY increase, with strong occupancy rates.
- Investment Potential: Affordable multifamily properties with higher cash flow than major metros.
4. Knoxville, TN – Affordable Living with Strong Growth
- Job Growth: Growth in healthcare, manufacturing, and education.
- Rent Growth: 5.2% YOY increase, attracting professionals and retirees.
- Investment Potential: Lower entry prices with increasing rental demand.
Investment Strategies for Emerging Markets
1. Focus on Workforce Housing & Class B/C Value-Add Properties
- Emerging markets lack new construction, creating demand for renovated apartments.
- Target properties near job centers for long-term rental stability.
2. Prioritize High-Demand Submarkets
- Look for low vacancy rates and high absorption rates in growing areas.
- Transit-oriented developments are a strong play in mid-sized cities.
3. Leverage Local Incentives & Economic Growth
- Many cities offer tax incentives for workforce and affordable housing projects.
- Partnering with local developers can provide access to off-market deals.
Emerging multifamily markets in the Southeast offer higher rent growth, better cap rates, and lower barriers to entry compared to major metros. By targeting high-growth secondary cities, investors can capitalize on population migration, job expansion, and strong rental demand to achieve higher returns.