Multifamily

Market Tier

Classification of metros by size, liquidity, and institutional capital flows.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Tier 1: NYC/LA/SF. Tier 2: Dallas/Atlanta/Phoenix. Tier 3: secondary metros. Tier 4: tertiary.

Examples

Tier 2-3 metros offer the best risk-adjusted yield currently.

Common mistakes

Buying tier-4 because cap rates look attractive.

Market Tier

Plain-English explanation

Examples

Common mistakes

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