As the saying goes, there are only three things that matter in real estate: location, location, location. That’s because home prices and rental rates across the U.S. are based on supply and demand, according to WalletHub.

The personal finance website studied 300 U.S. cities to find which offer the most potential for residential real estate investment.

WalletHub looked at 22 indicators to come up with its final ranking, which relied heavily on each market's housing market attractiveness and economic strength.

"Our data set ranges from median home-price appreciation to home sales turnover rate to job growth," the report stated. 

To determine the best places to buy property, WalletHub compared cities of varying sizes according to two key factors: “Real Estate Market,” which comprises a variety of indicators tied to housing market strength, and “Affordability & Economic Environment,” which has to do wtih an area's housing affordability and general economic strength.

The follwing, in ascending order, are WalletHub’s top 10 best residential real estate markets:

10.  Denton, Texas

Located in the Dallas-Fort Worth metroplex in North Texas, Denton’s website says the city offers urban amenities with a small town vibe. Denton ranks 23rd in affordability and economic environment and ninth in the strength of its housing market.

9.  Bellevue, Wash.

While Bellevue ranks 142nd in affordability and economic environment, the city is tied for first place with five other cities in California and Colorado for lowest percentage of delinquent mortgage holders. Bellevue ranks fourth in housing market strength.

8.  Seattle

Although Seattle ranks 171st in affordability and economic environment, the city is tied for first place with Sunnyvale, Calif., for lowest average number of days until a house is sold. Seattle ranks third in housing market strength.

7.  Richardson, Texas

Richardson, an affluent suburb of Dallas, ranks 10th in affordability and economic environment and 12th in housing market strength.

6.  Murfreesboro, Tenn.

Located near Nashville, Murfreesboro is one of the fastest-growing cities in Tennessee and the country. The city ranks seventh in affordability and economic environment and 10th in housing market strength.

5.  Durham, N.C.

Durham is home to Duke University and the Research Triangle, a business hub for high-tech companies. Durham ranks 60th in affordability and economic environment and fifth in housing market strength.

4.  Santa Clara, Calif.

Although Santa Clara ranks 247th in affordability and economic environment, the city is tied for third place with San Francisco, San Jose and Concord, Calif., for lowest average number of days until a house is sold and fourth for lowest percent of homes with negative equity. Santa Clara ranks first in housing market strength.

3.  Allen, Texas

A northern suburb of Dallas, Allen ranks third in affordability and economic environment and 11th in housing market strength.

2.  McKinney, Texas

McKinney is one of the fastest-growing cities in America, according to U.S. Census data. The city ranks second in affordability and economic environment and seventh in housing market strength.

1.  Frisco, Texas

Frisco is a bedroom community for professionals working in the Dallas-Fort Worth metroplex, and is one of the fastest-growing municipalities in the nation, according to U.S. Census data. Frisco ranks first in affordability and economic environment and eighth in housing market strength.

The full report can be viewed here.