Landlord insurance is one of the most overlooked but essential costs in any real estate investment strategy. While many investors focus on rent potential, appreciation, or tax benefits, the cost to insure your rental property can significantly impact your net cash flow.
To help investors make smarter decisions in 2025, we analyzed average landlord insurance premiums and rates per $1,000 of insured value across the U.S. Then we compared that with market demand insights from BiggerPockets, which identified the best-performing short-term rental markets in each state.
Here are the five states with the most affordable landlord insurance—and two top-performing cities to consider in each.
Nevada
Median Premium: ~$800
Rate per $1,000 TIV: $1.89
With landlord premiums nearly 40% below the national average (~$1,300), Nevada stands out as a high-potential market for rental investors. Whether you’re buying long-term holds or short-term vacation rentals, the math works well here.
Top Markets To Consider
- Las Vegas – Averages ~$805 in landlord insurance premiums and continues to offer strong tourism demand, attractive nightly rates, and favorable short-term rental regulations. Will always be a top vacation destination for Americans.
- Reno – With premiums around ~$893, Reno attracts Bay Area transplants, remote workers, and outdoor enthusiasts. Steady population growth and a rising tech scene make it a solid long-term rental market.
Utah
Median Premium: ~$875
Rate per $1,000 TIV: $1.89
Utah combines rapid population growth, high tourism activity, and some of the lowest insurance rates in the country. Whether you’re building a short-term portfolio or a long-term one, it’s a market with flexibility and growth.
Top Markets To Consider
- St. George – At just ~$700 in average premiums, St. George benefits from a mild climate and consistent year-round demand from retirees and national park tourists.
- Moab – Averaging ~$650, Moab’s stunning red rock scenery makes it a magnet for adventure tourists. High occupancy and low insurance costs offer attractive margins for short-term rentals.
Idaho
Median Premium: ~$880
Rate per $1,000 TIV: $2.02
Idaho has gained popularity for its affordability, outdoor lifestyle, and strong rent-to-price ratios. Investors will appreciate the manageable insurance costs and relative ease of tenant placement in growing cities.
Top Markets To Consider
- Boise – Boise’s premiums average ~$915, with strong in-migration and a growing tech economy driving both appreciation and stable long-term rental demand. It’s consistently listed among the best places to live in the country and has a rapidly expanding population, growing by an average of 2.5% annually since 2020.
- Idaho Falls – At ~$915 and a slightly better rate-per-value than Boise, Idaho Falls offers consistent local rental demand in a market that’s less saturated.
Wisconsin
Median Premium: ~$1,025
Rate per $1,000 TIV: $2.51
While slightly above some of the other states on this list, Wisconsin still comes in below the national average. It also offers unique opportunities for investors looking into lakefront short-term rentals or steady midwestern cash flow.
Top Markets To Consider
- Green Bay – Green Bay’s ~$850 premium is one of the lowest in the state, and the city’s stable economy and tenant base make it ideal for long-term rentals. Much of the city revolves around Packers football, and tourists flood the city for home games when the NFL season begins in the fall.
- Door County – At ~$1,100, premiums are higher, but Door County is a seasonal powerhouse for Airbnb-style rentals. Much of the county is surrounded by Lake Michigan, making it a popular summer getaway; think lakefront cottages, romantic escapes, and vacationers looking for charm.
Arizona
Median Premium: ~$1,025
Rate per $1,000 TIV: $2.26
Arizona offers excellent rental potential with consistent in-migration, a warm climate, and landlord-friendly laws. Insurance rates are still under the national average and the rental income opportunities are significant.
Top Markets To Consider
- Sedona – Sedona’s insurance premiums are higher at ~$1,450, but the area sees extremely strong nightly rates and high occupancy for short-term rentals, especially from tourists.
- Flagstaff – Just a bit further north, Flagstaff averages ~$1,200 in landlord insurance costs and draws demand from students, families, and weekenders escaping the heat of Phoenix. Both locations are surrounded by peaceful desert scenery and are popular weekend getaways.
Related reading: The most landlord-friendly states in 2025
Why Landlord Insurance Costs Matter For Real Estate Investors
Landlord insurance doesn’t just protect your building—it protects your business. Premiums vary widely across states depending on natural disaster risk, tenant behavior, and local construction costs.
Policies typically include rental income protection, liability coverage, and dwelling coverage. Especially if you’re operating an Airbnb or similar rental, you’ll need short term rental insurance to cover guest-related risks and income losses from cancellations.
Lower premiums mean lower operating costs and stronger net returns. That’s true whether you own a single family home or manage a portfolio of properties.
Get A Landlord Insurance Quote From Steadily
Whether you’re buying your first investment property or scaling your real estate portfolio, don’t overlook insurance costs when calculating ROI. Choosing a market with lower premiums can put hundreds—or thousands—back in your pocket each year.
Steadily offers fast, affordable landlord insurance quotes for both short-term and long-term rental properties. No hidden fees. No long waits. Just the coverage you need, when you need it. Get a quote today.
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