Can You Really Make a Duplex Investment Pay for Itself? Here Are 5 Cities Where It Might Work

The appeal of duplex investing is straightforward on paper: purchase a two-unit property, occupy one unit yourself, and let rental income from the other cover your mortgage payment. In theory, you get free housing while building equity and capturing any rental surplus as profit. But does this strategy actually work in today’s market?

According to Marcia Kaufman, CEO at Bayport Funding, the answer depends heavily on geography. “Even if the rent from the second unit doesn’t fully cover the monthly mortgage, it often makes housing significantly more affordable for the owner-occupant,” she explains. The challenge lies in finding markets where purchase prices remain reasonable while rental demand stays robust—a combination that narrows your options considerably.

However, certain pockets of the country still present compelling opportunities for the best place to buy a duplex. Here’s where the numbers align favorably.

Jacksonville: Growth Without the Premium Price Tag

Jacksonville has quietly become one of America’s largest cities, recently crossing 1 million residents and claiming the 10th-largest metro status, according to U.S. Census Bureau data. Despite this influx, the city maintains relative affordability. Median home prices sit 32% below the national average, yet average rent runs only 20% below—creating a meaningful gap for duplex investors to capitalize on.

The math becomes even more interesting when considering Jacksonville’s trajectory. Early investors who lock in today’s comparatively low purchase prices could benefit substantially if appreciation follows the pattern of other growing metros. One caveat: Kaufman emphasizes the importance of accounting for insurance costs, which can be particularly high in this region and may erode rental margins if not carefully managed.

Yonkers: The Affordable NYC Neighbor

Just outside New York City proper lies Yonkers, a Westchester County community that offers a unique combination: housing costs roughly half those of Manhattan, yet rental dynamics that mirror nearby NYC neighborhoods more closely than you’d expect. This geographic proximity means tenants actively compete for units, supporting healthy rent prices relative to purchase costs.

The best place to buy a duplex in the greater New York region often depends on commute tolerance, but Yonkers delivers compelling fundamentals for investors seeking balance between affordability and rental yield.

Raleigh-Durham: Betting on Economic Expansion

The Raleigh-Durham corridor presents a different investment thesis. Home prices hover near the national median, while rents fall slightly below average—initially suggesting mediocre duplex economics. But Kaufman sees untapped potential here.

The region’s strong university system and innovative economy create a demographic advantage: college graduates typically remain in the area for employment, generating steady demand from young professionals seeking quality rentals before they’re ready to purchase homes. This consistent tenant base reduces vacancy risk and supports pricing power. As the regional economy continues expanding, early duplex buyers may find themselves ahead of price appreciation curves, similar to Jacksonville’s opportunity but with more established employment infrastructure.

Hoboken and Jersey City: Premium Proximity Play

Across the Hudson River from Manhattan, Hoboken and Jersey City occupy an interesting market position. Purchase prices rival New York City’s outer boroughs, yet both cities offer rapid train access directly into Manhattan—a factor that justifies premium rents from commuter tenants.

These cities regularly see rent prices that match or exceed certain Brooklyn neighborhoods, despite meaningfully lower purchase costs. For investors comfortable with higher acquisition prices, the rental yields can still support duplex strategies, particularly among young professionals who prioritize convenient Manhattan commutes over homeownership.

Long Beach: Seasonality as a Feature

Long Island’s Long Beach presents the highest purchase barrier among these five markets, but compensates through unique seasonal dynamics. The beach town environment enables creative duplex strategies: one unit can function as a short-term rental or Airbnb during peak summer months when tourism drives premium nightly rates.

Even during off-season months, Long Beach maintains residential rental appeal, given its position within commuting range of Manhattan and direct rail access. This combination—seasonal premium pricing plus year-round baseline demand—can create attractive cash flow patterns that standard residential rentals cannot replicate.

The Bottom Line

The best place to buy a duplex ultimately depends on your risk tolerance and investment timeline. Markets offering immediate mortgage coverage through rental income remain limited, but strategic markets exist for investors willing to analyze local employment trends, demographic patterns, and seasonal dynamics. The strongest duplex candidates typically feature either significant affordability gaps relative to rents, or unique advantages like tourism demand, strong job creation, or commuter accessibility that support sustained rental prices.