Land prices vary dramatically across the United States, and where you buy matters as much as what you pay. The best states for land investment combine affordable per-acre prices, low property taxes, growing demand from buyers and developers, and land use regulations that do not make ownership unnecessarily complicated.
This guide covers what to look for when evaluating states for land investment and profiles several states that consistently attract investors. Keep in mind that conditions vary significantly within states, and the best counties in a given state can be far more important than the state itself.
What to Look for in a State
Affordable entry prices. States with lower average land prices give investors more options to work with and reduce the amount of capital at risk on any single deal.
Population and economic growth. States where people and businesses are moving to create demand for housing, commercial space, and infrastructure, which in turn drives land values upward.
Low or no income tax. States without income tax preserve more of the investor’s profit from land sales.
Reasonable property tax rates on raw land. High annual property taxes raise the cost of holding land and reduce returns.
Favorable land use laws. States and counties that make it straightforward to subdivide, rezone, and sell land without excessive regulatory hurdles are more investor-friendly.
Active buyer pool. The best state for buying land is one where you can also sell it. An active market of buyers, including other investors, homesteaders, developers, and recreational users, makes exits faster and easier.
Best States for Land Investment
Texas
Texas is one of the most active land markets in the country. The state has no income tax, a large and growing population, and strong demand for land from ranchers, developers, and recreational buyers. Per-acre prices range from under $2,000 in remote west Texas counties to over $15,000 in areas near Austin, San Antonio, and Houston.
Property taxes in Texas are higher than many other states, which is a real consideration for investors planning to hold land for several years. But the depth of the buyer pool and the strength of the economy make Texas a reliable market for land investors at almost any price point.
Tennessee
Tennessee combines no income tax, affordable land prices, and strong population growth driven by people and businesses relocating from higher-cost states. Rural land in Middle and East Tennessee can be purchased for $3,000 to $8,000 per acre in many counties, well below comparable land in states like North Carolina or Georgia.
The state has active demand from homesteaders, recreational buyers, and small developers, giving investors multiple exit paths. Tax burden is low compared to national averages.
Arkansas
Arkansas is often overlooked but consistently appears in land investor discussions because prices are low and land is plentiful. Recreational land and timberland are available in many counties for under $2,500 per acre. The Ozarks region attracts buyers looking for rural properties, and proximity to larger markets in Missouri and Tennessee supports demand.
Arizona
Arizona’s land market benefits from strong population growth, warm climate, and relatively favorable land use laws in many counties. Rural land in outlying counties can be purchased affordably, and proximity to Phoenix, Tucson, and the growing suburban sprawl creates a natural appreciation story.
Water rights and access to utilities are important due diligence items in Arizona. Land without water access or water rights can be difficult to sell to buyers who want to build or develop.
New Mexico
New Mexico has some of the lowest land prices in the continental United States for rural and desert land. The state attracts buyers interested in large parcels for recreational use, off-grid living, and ranching. Demand is not as deep as in Texas or Tennessee, so investors here need to be selective and patient.
Florida
North and Central Florida offer land at prices still accessible compared to the coastal areas, and the state’s population growth creates steady demand. Rural parcels in counties north of Tampa and Orlando can be purchased for $4,000 to $10,000 per acre and have benefited from outward suburban expansion.
Florida has no income tax, which preserves returns at exit. Property insurance considerations are important for parcels in coastal areas, but inland rural land is generally straightforward.
Montana
Montana attracts buyers looking for large recreational parcels. Land values have risen significantly over the past decade as remote work has made rural living more viable. While prices have climbed, Montana still offers larger parcels at per-acre costs far below what comparable land would cost in Western states like Colorado or California.
What to Avoid
States with high property taxes and stagnant economies can trap investors in deals where carrying costs erode returns before a buyer is found. States with complex zoning and subdivision laws can make it difficult to execute strategies like subdivision or rezoning. Always research the specific county, not just the state, before committing to a purchase.
How to Finance Land in Any of These States
Financing options for land depend more on the type of land than on the state it is in. Raw land is harder to finance through traditional lenders regardless of location. Improved lots and agricultural land have more financing options. Serious Land Capital works with investors across the country to fund land deals using an equity partnership model. Rather than taking out a land loan with a large down payment, investors bring the deal and the funding partner covers the purchase price and closing costs.
Land Funding Partners maintains a list of land funding resources and can help investors understand which financing approaches are appropriate for specific types of land deals in different states.
People Also Ask
Which state has the cheapest land per acre?
New Mexico, Arkansas, West Texas, and parts of the rural Midwest consistently have some of the lowest per-acre land prices in the country. Per-acre prices under $1,000 are still available in remote areas of these states.
What states have no tax on land sales?
No state has zero tax on land sale profits, but states without income tax, including Texas, Florida, Nevada, and Tennessee, do not tax capital gains at the state level. Federal capital gains taxes still apply.
Is farmland a good investment in the Midwest?
Midwest farmland has historically been one of the most reliable land investments in the country. Iowa, Illinois, and Indiana farmland is expensive per acre compared to recreational land in the South, but it produces reliable income through crop leases and has strong long-term appreciation.
Should I buy land in Texas or Tennessee?
Both are strong markets. Texas has a deeper buyer pool and higher absolute values but also higher property taxes. Tennessee has lower entry prices and a growing market with multiple buyer demographics. The right choice depends on your target price point and strategy.
Ready to Fund Your Next Land Deal?
Finding the right parcel is only half the work. Having the capital to close it, and a funding partner who understands land, is the other half.
Submit your deal to Serious Land Capital. The team reviews submissions across the country, provides institutional-grade underwriting, and covers the full purchase price and closing costs on qualifying deals. No monthly payments, no debt on your side.
Not ready to submit a deal yet? Compare every land financing option available, from equity partnerships to seller financing to bank loans, at Land Funding Partners.
