2026 Rental Market Outlook: Investor Sentiment, Trends, and Opportunities

The Q1 2026 Rental Investing Sentiment Survey reveals a rental market defined by steady demand, selective growth, and cautious confidence. While rising operating costs continue to pressure margins, many landlords are looking ahead with measured optimism.

Investors are planning modest portfolio expansion, prioritizing deal quality, and focusing on operational discipline. The data points to a year where smarter systems and intentional decisions will matter more than market swings.

Rental Market Outlook 2026: Sentiment and Activity

• Based on the Q1 2026 “Rental Investing Sentiment Survey” data, rental property investors maintain a cautiously optimistic outlook despite rising costs.

• While nearly half (49.5%) of investors felt current conditions were unchanged from the last 12 months, over a third (38.8%) expect conditions to improve somewhat in 2026. This optimism aligns with strong rental demand expectations, with 77% (52.9% “Somewhat strong” + 24.1% “Very strong”) anticipating strong demand. Renter turnover is largely expected to remain the same (68.3%).

• Reflecting this, investors plan a notable increase in purchasing activity in 2026, with 51.2% planning to buy 1-2 properties, a shift from the 54.6% who made no purchases in 2025. 

• Investors may need to search for inventory as selling activity is expected to remain low, as 79.0% plan no sales, following 86.5% who sold none in 2025.

Rent, Costs, and Challenges

• Despite the positive outlook on demand, the primary challenge remains increased costs, cited by 53.5% of investors as the biggest barrier to their goals. Investors also anticipate substantial spending on property maintenance, with a majority (38.5%) expecting to spend between $1,500 and $4,999 per unit on home improvement projects.

• The top predicted operating cost increases are insurance (33.7%) and property taxes (28.6%). 

• The largest group of investors (46.9%) plans to implement a modest rent increase of 1%-3%, although 30.5% plan no increase.

Q1 2026 Rental Investing Sentiment Survey Results

What the Q1 2026 Survey Signals for Landlords

The Q1 2026 survey shows a rental market where optimism is present, but discipline is essential. Landlords are balancing strong renter demand with rising costs by planning carefully, underwriting conservatively, and focusing on operational efficiency.

Rather than rapid expansion or aggressive rent hikes, most investors are choosing steady growth and long-term resilience. In 2026, success will favor landlords who manage smarter—using clear systems, better rental data, and intentional strategies to protect cash flow and build lasting wealth.