RealtyTrac, a leading source for comprehensive housing data, just released its 3rd Quarter Residential Property Rental Report, ranking the best and worst markets for buying residential rental properties. You can read the full report HERE
RealtyTrac analyzed 586 counties and their findings indicated that investors with U.S. residential rental property are getting an average return of 9.06% for the third quarter of 2014. This is down from the average return of 9.65% from the third quarter 2013.
Their findings also indicated that median home prices increased more than 7% and average fair market rents for 3 bedroom homes increased an average of less than 1%.
RealtyTrac also broke up their findings into 2 categories – Safe Haven Single Family Rental Markets and High Risk, High Yield Single Family Rental Markets.
The safe haven market yields a rental return between 10.04% and 14.17% and is a more stable environment for these types of investment properties.
The high risk, high yield market yields a return between 14.23% and 41.57% but is a less stable environment in terms of unemployment rates and rental vacancy rates.
Want to see a heat map of the country showing the areas where buying residential rental property will yield solid returns and which will not?
If you’re a landlord, please share with us what’s happening in the rental market in your area by leaving a comment below. We would love to have a first hand account of how your rentals are performing.