No. 8 Best City to Buy: Phoenix

Price-to-rent ratio: 10
Avg. cost to rent 2br: $883
Avg. cost to buy 2br: $100,534

Why: Hit hard by the housing bust, sales in Phoenix have been slowly improving as prices remain low and the tax credit encourages buyers. According to DataQuick, foreclosure resales in April represented half the resale market. Prices in the city will continue to favor buyers, as the inventory of foreclosed homes is still large.

In photo: 2150 East Bell Road; Price: $100,000; Bedrooms: 2; Bathrooms: 2½; Size: 1,186 sq. ft.