These Markets Command the Highest Single-family Rent Returns

Demand for single-family rental properties varies widely across the country — as do the rents those homes command. That’s why, for real estate investors, choosing the right market is critical.

Are you considering investing in a rental property sometime in 2020? Want to make sure you pick the right location to guarantee returns?

Using data from our sister company ATTOM Data Solutions, we’ve gathered up the spots where single-family rental investors see the most in annual profits. Here are the top 10:

Baltimore City, Maryland24.5%
Bibby County, Georgia21.9%
Cumberland, New Jersey21.2%
Winnebago, Illinois17.1%
Wayne County, Michigan17.1%
Cuyahoga County, Ohio12%
Allegheny County, Pennsylvania10.9%
Cook County, Illinois9.7%
Philadelphia County, Pennsylvania9.4%

If you’re looking for a market with high growth potential, here are the markets that saw the biggest jump in investor returns over the last year:

  • Saint Clair, Illinois (+21%)
  • Jefferson, Alabama (+20.7%)
  • Mobile, Alabama (+19.6%)
  • Baltimore City, Maryland (+18.5%)
  • Caddo, Louisiana (17.3%)
  • Beaver, Pennsylvania (+15.7%)
  • Lorain, Ohio (+15.4%)
  • Madison, Illinois (+10%)
  • Summit, Ohio (+9.9%)
  • Spartanburg, South Carolina (+8.1%)

Markets with the Lowest Returns

What’s just as important as choosing the right market? That’d be avoiding the wrong one. And in the single-family rental space, that’s most of California. In San Mateo County, for example, rental yields were just 3.4% in 2019. San Francisco County, Marin County, and Santa Clara were also similarly low. Kings County in New York was No. 5 for the lowest rental yields at 4.3% annually. 

Get Even Bigger Returns

Choosing the right market is only one part of the equation. Another way to ensure solid returns is to buy bargain-priced, below-market-value properties. We can help there, too. Check out our foreclosure listings, home auctions, and bank-owned properties, and use our foreclosure search tool to find your next great deal.

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