THE WORST STATES TO BE A LANDLORD: 2026 WESTERN RANKINGS Based on objective criteria, we have created a practical, investor-focused Score Card for the prospects of continuing to own residential rentals in the Western United States. The scoring is intended to help answer the question, “How attractive is it to keep owning residential rental units here over the next several years?” Scoring factors are weighted as follows: • 35% Landlord rules and compliance complexity (rent caps, just cause, fees, notices, local patchwork) • 20% Taxation on individuals (state income, property tax trends, unique landlord impacts)
• 20% Migration and demand for basic rentals • 15% Job growth and economic resilience • 10% State fiscal health and future policy risk
Legend • 9-10 = Excellent: simple rules, good demand, solid after-tax returns. • 7-8.9 = Attractive: mostly favorable; mind a few pressure points. • 5-6.9 = Caution: workable, but regulation/costs can sting small owners. • <5 = Defensive: viable only with strong basis/unique asset or exit planning.
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