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Where to Buy Single-Family Rentals in 2019

Investors are still finding the single-family rental market a lucrative business. The average annual gross rental yield for a single-family home (that is, the annualized gross rent income divided by the median purchase price) was 8.8 percent in the first quarter of 2019, up from 8.7 percent a year prior, according to ATTOM Data Solutions’ Q1 2019 Single-Family Rental Market report, analyzing 432 counties with populations of at least 100,000. “Buying single-family homes to rent them out is a better deal for investors so far this year than it was at the same time in 2018, as profit margins are rising in a majority of counties across the United States,” says Todd Teta, chief product officer at ATTOM Data Solutions. “Last year, at this time, investors were seeing returns drop in three-quarters of the counties that were analyzed. ATTOM Data Solutions ranked the best U.S. markets for buying single-family rental properties this year. The counties with the highest rental returns in the first quarter were: Baltimore City, Md. : 24.5% Bibb County, Ga. (in the Macon metro): 21.9% Cumberland, N.J. (Vineland-Bridgeton metro): 21.2% Winnebago, Ill. (Rockford metro): 17.1% Wayne County, Mich. (Detroit metro): 17.1% Cuyahoga County, Ohio (Cleveland metro): 12% Allegheny County, Pa.: 10.9% Cook County, Ill. (Chicago metro): 9.7% Philadelphia County, Pa.: 9.4% Rental returns rose compared to a year ago in more than half of the counties ATTOM researchers analyzed. The report also identified the single-family rental markets most poised for growth. The high-growth markets include Wayne County, Mich. (Detroit); Cuyahoga County, Ohio (Cleveland); Allegheny County, Pa. (Pittsburgh); Milwaukee County, Wis.; and Marion County, Ind. (Indianapolis).