Real estate investment tech company Compound has launched its Compound Residential Real Estate Investment Rankings (“CRRR”) report with a ranking of the best- and worst-performing U.S. cities for real estate investment within the past four quarters, from Q1 2018 to Q1 2019.

Residential real estate prices appreciated by 5.54% on average in the United States’ 40 most populous cities over this period, based on data sourced from Zillow. Indianapolis, Ind. was the best-performing residential real estate market by this metric, with price appreciation over 12% year over year. Indianapolis also has the nation’s highest Sharpe Ratio at 2.42. (The Sharpe ratio is a calculation of return compared to risk developed by Nobel laureate economist William F. Sharpe.)

Based on comparisons of risk and reward, Compound has named Indianapolis the nation’s top major metro area for real estate investment. Cincinnati, Ohio comes in second, with 8.37% price appreciation and a Sharpe ratio of 1.65, followed by Kansas City, Missouri, Charlotte, N.C. and Dallas-Fort Worth. All MSAs in the top five feature price appreciation above 8% and Sharpe ratios of 1.33 or higher.

On the opposite end of Compound’s list, San Jose, Calif. ranks at No. 40, with a Sharpe Ratio of -0.26 and the lowest home price appreciation out of the nation’s top 40 markets at -0.34%. San Diego comes in 39th with 1.29% home price appreciation and a Sharpe ratio of -0.11, followed by San Francisco, Los Angeles and Seattle.

The bottom five cities for real estate investment are also the only ones in Compound’s report with negative Sharpe Ratios. All are located on the West Coast; the bottom four are in California, and two out of the bottom five are major Bay Area cities.