Today in our five-day series on the single family rental market using we’re looking at the 19 best markets for buying single family rentals with high gross rental yields and wage growth based on data from the ATTOM Data Solutions Q3 2016 Single Family Rental Market Report published last week.
Yesterday we looked at the 22 best markets for buying single family rentals with high yields and low vacancy rates.
For today’s list of 19 best markets with a combination of high rental returns and wage growth, we narrowed down the list of all 473 counties analyzed in the report to just those with a potential gross annual rental yield (annualized rental income divided by median sales price) of at least 10 percent for homes purchased in 2016 and also with annual growth in average weekly wages in Q1 2016 — the most recent average weekly wage data available from the Bureau of Labor Statistics.
The five most populous counties making the list were Macomb County, Michigan, in the Detroit metro area; Polk County, Florida, in the Lakeland-Winter Haven metro area; Ocean County, New Jersey, and Orange County, New York, both in the greater New York metro area; and Bell County, Texas, in the Killeen-Temple metro area.
Counties with the highest annual gross rental yields on the list were Clayton County, Georgia in the Atlanta metro area (24.3 percent); Saint Lawrence County, New York in the Ogdensburg-Massena metro area (16.9 percent); Jackson County, Michigan in the Jackson metro area (13.9 percent); along with Carroll County, Georgia (13.3 percent) and Newton County, Georgia (13.1 percent), both in the Atlanta metro.
Counties with the strongest annual weekly wage growth on this list were once again led by Clayton County, Georgia (17.4 percent), followed by Woodbury County, Iowa in the Sioux City metro area (12.2 percent); Carroll County, Georgia in the Atlanta metro area (6.0 percent); Whitfield County, Georgia in the Dalton metro area (4.8 percent); and Peoria County, Illinois in the Peoria metro area (4.8 percent).