The single-family rental market continues to offer opportunities for investors, but rising acquisition costs are placing pressure on potential returns in many areas. Market selection—and analysis at the property level—remains essential when building a sustainable rental portfolio.
According to ATTOM’s 2026 Single-Family Rental Market Report, potential rental yields declined from 2025 in 54.8% of the counties it analyzed. However, rents increased faster than home prices in 55% of counties, demonstrating that conditions vary significantly by market.
A capitalization rate, or cap rate, compares a property’s annual net operating income with its value or acquisition price:
Cap Rate = Net Operating Income ÷ Property Value
For example, consider a property valued at $200,000 that generates $24,000 in annual rental income and has $10,000 in annual operating expenses. Its net operating income would be $14,000, producing a 7% cap rate.
ATTOM’s rankings use potential gross rental yield rather than property-level cap rate. Gross yield generally compares annual rent with the purchase price before deducting expenses. Because it does not account for taxes, insurance, maintenance, vacancies, management, financing, or capital expenditures, it should be treated as an initial market-screening metric—not a projection of actual returns.
Among the counties analyzed, ATTOM identified the following as having the highest potential gross rental yields for three-bedroom single-family rentals in 2026:
Among counties with populations exceeding one million, the highest potential yields were reported in:
ATTOM reported the lowest potential gross rental yields in:
Lower-yield markets are not automatically poor investments. Some may offer stronger appreciation potential, lower vacancy, greater liquidity, or other advantages. Conversely, a high gross yield may reflect elevated operating costs, property risk, economic uncertainty, or limited appreciation prospects.
Before investing, evaluate the specific property and neighborhood rather than relying solely on a countywide average. Important considerations include:
Insurance costs, taxes, maintenance, and rents can vary substantially within the same county. Investors should use current local data and conservative assumptions when evaluating a potential acquisition.
CoreVest provides business-purpose financing for residential real estate investors, with solutions for acquisitions, renovations, construction, and stabilized rental properties.
This article is provided for informational purposes only and does not constitute legal, tax, investment, financial, or lending advice. Market data and projected yields are estimates and do not guarantee property performance or investment returns. Investors should conduct independent due diligence. All loans are subject to underwriting, credit approval, eligibility requirements, and applicable terms and conditions.
CoreVest Finance | NMLS #1627183
