18 Best Single Family Rental Markets for High Rental Yields and Strong Rental Demand

In this third post in our five-part series on the state of the single family rental market, we look at the 18 best markets for buying single family rentals with the potential for both high gross annual rental yields and where the owner-occupancy rate is low — a sign of strong demand from prospective renters.

As with the previous two posts — the 22 best SFR markets for high yields and low vacancy rates, and the 19 best SFR markets for high yields and wage growth — the data used to create today’s list is from the ATTOM Data Solutions Q3 2016 Single Family Rental Market Report published last week.

The 18 markets on today’s list provide strong potential rental yields for properties purchased in 2016 along with low owner-occupancy rates for single family homes, meaning that a high percentage of folks living in a home don’t own the home, but are renters. That is good news for single family rental investors as it shows a broad base of demand from renters in that market.

All 18 markets on the list have 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 at least 33 percent of all single family homes in these 18 markets are non-owner occupied.

The five most populous counties making the list are Baltimore City, Maryland; Clayton County, Georgia in the Atlanta metro area; Richmond City, Virginia; Yuma County, Arizona in the Yuma metro area; and Richmond County, Georgia in the Augusta-Richmond metro area.

Counties on the list with the highest share of non-owner occupants were Bibb County, Georgia, in the Macon metro area (45.7 percent); Monroe County, Pennsylvania, in the East Stroudsburg metro area (43.5 percent); Sumter County, South Carolina, in the Sumter metro area (42.3 percent); Davidson County, North Carolina, in the Winston-Salem metro area (42.1 percent); and Wicomico County, Maryland, in the Salisbury metro area (41.9 percent).





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