Single-Family Rental Yields Dip Nationwide as Home Prices Surge
Event summary
- Rental yields declined in 54.8% of U.S. counties from 2025 to 2026 despite rents rising faster than home prices in 55% of counties.
- Midwestern counties like Saint Clair County, IL, and Mobile County, AL, led with the highest rental yields (14.5% and 13.6%, respectively).
- Wages outpaced rent and home price increases in 63% and 66.8% of counties, respectively.
- ATTOM identified 18 'SFR Growth' counties where wages grew and rental yields exceeded 10%.
- Record-high home prices ($360,000 national median) are compressing rental yields, forcing investors to be more selective.
The big picture
The decline in single-family rental yields highlights a broader trend of rising home prices outpacing rental income growth. While wages are increasing faster than rents and home prices in many counties, the high upfront costs of acquiring properties are squeezing profitability. Investors will need to adopt more selective strategies, focusing on markets where rent growth and affordability trends remain favorable. This shift could reshape the single-family rental investment landscape, particularly in high-cost regions like California.
What we're watching
- Yield Compression
- How record-high home prices will continue to pressure rental yields in high-cost markets.
- Regional Disparities
- Whether Midwestern counties can sustain higher rental yields amid national trends.
- Investor Strategy
- The pace at which investors shift focus to markets with stronger rent growth and affordability trends.