Single-family rental property owners in 48% of all US counties are at above-average risk for default, according to a new study by RealtyTrac. Even worse: almost 90% of those properties are owned by mom-and-pop investors who own fewer than 10 rentals. 

The RealtyTrac Rental Property Risk Report uses real estate and mortgage records from ATTOM Data Solutions to analyze data from 3,143 counties across the US against three criteria: the percentage of rental units; the unemployment rate in the county; and the loan-to-value ratio of rental properties there. The report then created a weighted average using those criteria, with 100 representing the highest potential risk.

The report found that taken together, COVID-19, job losses, and eviction moratoria have led to reduced on-time rental payments by tenants—and have led to an increased risk of default, especially among highly-leveraged smaller investors.