Mesa, Ariz.: Buy
Median home price: $64,400
Median annual rent: $8,100
Price-to-rent ratio: 8
This bedroom community of Phoenix has felt that city's cycle of skyrocketing home prices followed by a devestating.
That has left a flood of repossessed homes sitting on the market, pushing down home prices. Meanwhile, those former homeowners still need a place to live. So they've hit the rental market, which has sent those prices higher.
The end result is very reasonable purchase prices and stable rent costs.
NEXT: Memphis, Tenn.: Rent
Last updated January 25 2011: 8:31 AM ET
