It's a challenging market for single-family home rentals for both landlords and tenants, according to real estate data provider ATTOM. Its latest report on SFRs showed that profit margins are down year-over-year across most of the country. Furthermore, margins are "slightly more likely" to drop in areas that already have lower yields.
Using its own data and that licensed from third parties, the company analyzed SFR rental yields in 212 U.S. counties with populations of at least 100,000. Average gross rental yields—annualized 2022 gross rent divided by median purchase prices in the first quarter of 2022—before expenses on three-bedroom SFRs purchased this year decreased in 72% of counties.
That said, there's still value to be had. According to the data from ATTOM, yields before expenses for single-family rentals "are at least 7 percent this year in 98 (46 percent) counties."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
