You’ve heard the advice a thousand times: “Buy in the Sun Belt! Follow the migration!” It worked in 2021. But in 2026, that advice is a trap. The easy money is gone, and the hottest markets are choking on oversupply. That’s why investors are looking to Tier 2 cities Markets with strong fundamentals and big upcoming infrastructure projects. So where does the smart money go when the party ends in Nashville and Austin?
In this episode of the 5-Minute PRIME Podcast, host Martin Maxwell ignores the national headlines to reveal the “Tier 2 Trinity”—three overlooked markets that are quietly finishing massive infrastructure projects that will change the rental game in 2026.
Tune in to learn:
- The “Biotech Pivot”: How Cleveland is shedding its Rust Belt skin with a $3 billion innovation district that is creating thousands of high-income jobs (and tenants) right now.
- The Institutional Fortress: Why Birmingham, Alabama, isn’t just a college town, but a sovereign economy anchored by a $12 billion institution that makes it recession-proof.
- The Legacy Play: How to look past the 3-week hype of the FIFA World Cup in Kansas City and target the permanent infrastructure upgrades that will drive appreciation for the next decade.
- The “Radius Test”: A simple, actionable mission you can run on Google Maps today to find cash-flowing deals that beat the national averages.
Are you ready to stop chasing the herd off a cliff and start investing where the real catalysts are? Subscribe now to discover the hidden pockets of profit in 2026.
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Show Notes: Tier 2 Trinity
Key Takeaways
- Stop chasing national headlines or oversupplied Sun Belt markets like Austin or Nashville; success in 2026 requires targeting “Tier 2” markets with specific economic catalysts.
- Cleveland is shedding its “Rust Belt” image for a “Brain Belt” reality due to the Cleveland Clinic Innovation District, which is projected to create 20,000 high-income jobs.
- The “Med-Eds” strategy involves buying renovated homes (
150k−150k−200k) near the Cleveland Clinic to target medical professionals, potentially yielding 6.8% cap rates. - Birmingham serves as an “Institutional Fortress” anchored by UAB, a university and medical system with a $12.1 billion economic impact that offers recession-proof stability.
- Avoid Birmingham’s downtown luxury condos and instead target affordable, “boring” 3-bedroom homes in neighborhoods like Southside or Glen Iris.
- Kansas City offers a unique opportunity where 2026 World Cup preparations are accelerating permanent infrastructure projects like the Streetcar extension and the South Loop Project.
- Investors in KC should use the short-term rental income spike from the World Cup to fund capital expenditures, then pivot to long-term transit-oriented rentals.
Action Step:
- Choose one of the “Tier 2 Trinity” markets discussed: Cleveland, Birmingham, or Kansas City.
- Open Google Maps and locate the specific economic catalyst for that Tier 2 city (The Cleveland Clinic, UAB Campus, or the KC Streetcar line).
- Draw a 2-mile radius circle around that specific infrastructure project to define your “path of progress.”
- Filter your search for single-family homes or small multifamily units listed under $200,000 within that circle.
- Calculate the potential rental income against a mortgage with a 6.5% interest rate to see if the property generates positive cash flow.
Mentioned in This Episode
Episodes to Revisit:
- Episode 111 – The Post-Pandemic Hangover & 6% Interest Rates
Concepts:
- The “Tier 2 Trinity”
- The “Med-Eds” Play
- Transit-Oriented Development (TOD)
- Positive Leverage
Projects & Locations:
- Cleveland Clinic Innovation District
- UAB Biomedical Research and Psychology Building
- KC Streetcar Main Street Extension
- South Loop Project (I-670 Cap)
- FIFA World Cup 2026
Challenge for Today:
- Stop reading headlines about the “National Housing Market” and commit to analyzing a specific local submarket instead.
- Identify one actual listing on a site like Zillow or Redfin that fits the criteria discussed in the episode (under $250k, near a catalyst).
- Run a quick “napkin math” analysis on that property to see if it achieves Positive Leverage where the cap rate exceeds the cost of debt.
- Save the property to a “2026 Watchlist” folder to track its price movement and status over the next 30 days.
