Investing in West Virginia Real Estate: Cash Flowing Properties That Beat the 1% Rule
Investing in West Virginia Real Estate: Why Out-of-State Investors Are Targeting the Mountain State
When most investors look for strong real estate markets, they often focus on fast-growing areas like Florida, Texas, or Arizona. While those states have their appeal, rising property prices have made it nearly impossible to find deals that cash flow. That’s why savvy investors are turning their eyes to West Virginia—a state that offers affordability, high rent-to-price ratios, landlord-friendly laws, and untapped potential.
In this article, we’ll break down why West Virginia is attracting out-of-state investors, how the 1% rule applies here, and why major population centers like Morgantown, Charleston, Huntington, Teays Valley, and Hurricane are providing some of the best cash-flowing rental properties in the country.
The 1% Rule Explained
One of the most popular metrics for evaluating a rental property is the 1% rule. The rule states that a property’s monthly rent should be at least 1% of the purchase price.
For example:
A $100,000 property should rent for at least $1,000 per month.
A $200,000 property should rent for at least $2,000 per month.
This rule doesn’t guarantee profitability, since expenses, taxes, and financing play a role, but it’s a quick way to screen for deals that have strong cash-flow potential.
Here’s the challenge: in most U.S. markets, especially larger metros, finding properties that meet the 1% rule is almost impossible in 2025. High property values and slow rent growth have pushed investors into markets where they’re forced to settle for 0.5%–0.7% returns—if that.
But West Virginia is different.
How West Virginia Outperforms the 1% Rule
Unlike overheated coastal markets, West Virginia regularly offers rental properties that hit 1.5%–2% or more.
That means:
A $100,000 property can rent for $1,500–$2,000/month.
A $150,000 property could realistically bring in $2,250–$3,000/month.
For cash-flow investors, this level of return is extraordinary. It allows investors to cover expenses comfortably, build reserves, and generate real income each month rather than waiting years for appreciation.
Population Centers Driving Rental Demand
West Virginia isn’t just rural mountain towns. The state’s population hubs offer diverse rental demand from students, medical professionals, families, and commuters.
Morgantown
Home of West Virginia University, with over 25,000 students.
Constant rental demand from students, professors, and healthcare professionals at WVU Medicine.
Investors can find small multifamily properties where rents exceed the 1% rule by a wide margin.
Charleston
The state capital with a strong mix of government jobs, healthcare, and industry.
Housing affordability remains high, with many properties selling below the national average.
Rental demand is steady, and many investors report deals hitting 1.5%+ returns.
Huntington
Anchored by Marshall University and a major healthcare hub.
Offers some of the best value per square foot in the state.
Strong rental demand from both students and professionals.
Teays Valley & Hurricane
Suburban areas between Charleston and Huntington, offering newer construction and family-friendly communities.
Rental properties here often exceed the 1.5–2% rule due to high demand and relatively low acquisition costs.
Attracting both commuters and long-term renters seeking high-quality schools.
Together, these cities provide multiple strategies for investors—student rentals, single-family homes, and multifamily properties—all with strong cash flow potential.
A Landlord-Friendly Environment
Another major advantage is that West Virginia is a landlord-friendly state. Unlike some states where eviction laws heavily favor tenants, West Virginia offers clearer protections for property owners.
Key benefits for landlords include:
Faster eviction timelines compared to tenant-heavy states.
Flexibility in lease terms and rental increases.
Lower property taxes compared to national averages.
For out-of-state investors, this is critical. Owning rentals remotely can be stressful, but knowing the legal system isn’t stacked against landlords makes West Virginia an attractive option.
Why Out-of-State Investors Should Consider West Virginia
If you’re investing from outside the state, here’s why West Virginia stands out:
Affordability – Properties in major West Virginia cities often cost a fraction of what you’d pay in states like Colorado, California, or Florida.
Cash Flow vs. Appreciation – Many investors chase appreciation in hot markets but struggle with negative cash flow. In West Virginia, you get positive cash flow immediately.
Diversification – Adding West Virginia properties to your portfolio spreads risk and balances out investments in lower-yield, higher-cost states.
Long-Term Stability – Steady employment sectors like healthcare, education, and government provide consistent tenant demand.
Final Thoughts
For real estate investors searching for strong cash flow, West Virginia is one of the best-kept secrets in the U.S. market. With properties regularly hitting 1.5%–2% returns, a landlord-friendly legal environment, and growing demand in its major cities, the Mountain State offers out-of-state investors a chance to build wealth faster.
If you’re tired of overpaying in oversaturated markets, it’s time to take a closer look at West Virginia. The numbers don’t lie—and neither does the cash flow.