Two firms, Parcl Labs and ATTOM, have estimated gross rental yields (median gross annual rent income divided by median property acquisition price) for single family homes as rental properties and then determined which metro markets has the highest values.
But are the results the same? No, they aren't, raising questions about how CRE investors need to dig into data to better understand what they're hearing.
First, data from Parcl Labs, as presented by ResiClub in a Fast Company article. The company took the monthly median price on new rental listings in 52 markets and multiplied by 12 to get the median annual rental income. It then took the median price of new home listings to get the median acquisition price. Finally, they divided the rental incomes by the acquisition prices to get the gross rental yields.
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