Where Single-Family Rentals Are Performing the Strongest

March 17, 2020

The returns on single-family rental have decreased from a year ago in 59% of 389 U.S. counties tracked, but not all cities have seen profits slip in recent weeks, according to ATTOM Data Solutions’ 2020 U.S. Single Family Rental Market Report.

Nationwide, the average annual gross rental yield (the annualized gross rent income divided by the median purchase price of single-family homes) was 8.4% for the first quarter of 2020, which is down slightly from an 8.6% average a year ago.

But some counties are seeing single-family rental yields between 15% to nearly 29%. The counties with the highest potential annual gross rental yields for 2020, according to ATTOM Data Solutions’, are:

  • Baltimore City/County, Md.: 28.9%
  • Cumberland County, N.J., in the Vineland-Bridgeton metro area: 20.1%
  • Bibb County, Ga., in the Macon metro area: 18.2%
  • Mobile County, Ala.: 15.7%
  • Clayton County, Ga., in the Atlanta metro area: 15.1%

Among counties with a population of at least 1 million, the highest gross rental yields so far in 2020 are:

  • Wayne County (Detroit), Mich.: 14.5%
  • Cuyahoga County (Cleveland), Ohio: 11.8%
  • Cook County, Ill.: 9.3%
  • Dallas County, Texas: 9.1%
  • Harris County, Texas: 8.7%

The following are the single-family rental markets poised for the greatest rental yield increases: Saint Clair, Ill. (21%); Jefferson, Ala. (20.7%); Mobile, Ala. (19.6%); Baltimore City, Md. (18.5%); Caddo, La. (17.3%); Beaver, Pa. (15.7%); Lorain, Ohio (15.4%); Madison, Ill. (10%); Summit, Ohio (9.9%); and Spartanburg, S.C. (8.1%).