Landlords: Check out the best (and worst) markets for rentals… October 13, 2014

How Does Your Market Stack Up?

 

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’s findings for the top 10 markets for rental returns

 

  1. Edgecombe County, NC, in the Rocky Mount metro area – 41.57% annual gross rental yield
  2. Clayton County, GA, in the Atlanta metro area – 26.88% annual gross rental yield
  3. Duplin County, NC – 24.40% annual gross rental yield
  4. Howard County, IN, in the Kokomo metro area – 24% annual gross rental yield
  5. Putnam County, FL, in the Palatka metro area – rental yield not reported
  6. Spalding County, GA – 20% annual gross rental yield
  7. Wayne County, MI – 19% annual gross rental yield
  8. Columbia County, FL – 18% annual gross rental yield
  9. Pasco County, FL – 17% annual gross rental yield
  10. Hernando County, FL – rental yield not reported

 

RealtyTrac’s findings for the 10 markets with the lowest rental returns

 

  1. New York County, NY – 2.40% annual gross rental yield
  2. San Francisco County, CA – 3.16% annual gross rental yield
  3. Kings County, NY – 3.64% annual gross rental yield
  4. Williamson County, TN – 3.73% annual gross rental yield
  5. Marin County, CA – 3.75% annual gross rental yield
  6. Santa Clara, CA – rental yield not reported
  7. San Mateo, CA – rental yield not reported
  8. Santa Cruz, CA – rental yield not reported
  9. Westchester County, NY – rental yield not reported
  10. Eagle County, CO – rental yield not reported


RealtyTrac also broke up their findings into 2 categories – Safe Haven Single Family Rental Markets and High Risk, High Yield Single Family Rental Markets.

16 Safe Haven 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.

16 High Risk Single Family Rental Markets

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.

See the full report here


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?

Rental Heat Map

See RealtyTrac’s heat map here

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.

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