10. Dayton, Ohio
This Midwestern metro, with a population of 843,948 people, currently offers an average discount of approximately 56 percent on distressed residential assets. But the market is steadily improving. In February, the median sales price for single-family homes and condos in the area was $42,000, up 13 percent compared to the same period last year. There are 384,846 housing units in the metro, according to RealtyTrac estimates.