Real Estate Investment Insights

If you’re a landlord or considering purchasing a rental income property, consider a debt service coverage ratio (DSCR) loan to fund your next purchase. A DSCR loan is specifically designed to finance rental properties and can be easier to qualify for than a conventional mortgage, as it leverages the property’s cash flow instead of a buyer’s income, tax returns, and W-2. This article will cover the finer points of DSCR loans, including their requirements, qualification process, and flexibility for real estate investors.   What is a DSCR Loan? DSCR loans are mortgages secured by the property’s rental income and do not require the buyer to provide the same documentation needed with a mortgage for owner-occupied properties. This feature is especially helpful for self-employed investors who may not have a conventional income stream or have been challenged to obtain financing through traditional banks. DSCR loans are specifically designed for residential income-producing properties and are quickly becoming the preferred option for investors purchasing income properties. Still, there are some considerations regarding DSCR loans: Only properties with one to four units are eligible for DSCR lending, as additional units in the building would classify it as “multi-family.” Most DSCR lenders prefer turnkey or stabilized properties, though some allow light rehab if the property is leased or stabilized quickly. Lastly, the property must be a business asset or income investment, meaning the owner cannot reside at the address.   How DSCR Loans Are Calculated DSCR loans are based on a calculation that assesses the property’s potential to cover its expenses. The calculation divides the property’s net operating income (NOI) by its total debt service (TDS) to obtain a number less than, greater than, or equal to 1.0.   DSCR = Net Operating Income (NOI) / Total Debt Service (TDS)   Net operating income is calculated by subtracting the total operating expenses from the gross rental income. Total debt service refers to the sum of all debt-related costs that the property is required to pay. The DSCR ratio is what tells the borrower and lender how much income the property is generating to cover (or not cover) its own expenses. DSCR > 1 means the property is generating enough income to cover its debt. DSCR = 1 means the property is just breaking even with enough income to cover its debt. DSCR < 1 means the property isn’t generating enough income to cover its debt, posing a greater risk for lenders.   For Example: DSCR = $150,000 / $100,000 = 1.5   This means the property generates $150,000 in income, with total expenses equal to $100,000. This results in a DSCR of 1.5, so the property yields 50% more income than what’s needed to cover its debt, making it a more acceptable threshold for a lender to consider financing.   DSCR Loan Requirements: What Lenders Look For + Refinance Outlook Recently, rates have eased into the mid-6% to 7% range on average, and liquidity from non-agency or non-QM channels has improved. At the same time, rents are increasing unevenly by metro area, and insurance costs remain elevated in some counties. Key factors driving uneven rent increases can include: Supply and demand. Migration patterns. Construction costs. Location desirability. Inflation. Post-pandemic changes. All of this is reflected in today’s DSCR underwriting. Lenders are pricing more competitively than in previous years, but they’re also scrutinizing expenses such as taxes and homeowners’ insurance that impact cash flow. Core DSCR requirements (what you’ll typically need) and LendingOne’s impact: Property & use: 1-4 unit single-family rentals (SFRs), townhomes, condos, and planned unit developments (PUDs); investment use only (non-owner-occupied). DSCR threshold: Many programs target a DSCR of ≥1.10-1.20, depending on the credit; some offer options for break-even or even sub-1.0 DSCR with compensating factors. Example: LendingOne’s core grid lists 1.10-1.20 minimums by FICO; separate programs advertise flexibility for break-even and negative cash-flowing properties. Always confirm program-specific guidelines. Leverage: This is program-dependent, but LendingOne, for example, offers up to 80% LTV on purchase or rate/term refi; up to 75% LTV on cash-out. Credit & experience: Program minimums vary; one representative grid shows a minimum FICO score of 680, with stronger credit resulting in a lower required DSCR and potentially reduced reserve needs. Some programs require experience with existing investment properties. Reserves & payment structure: Expect reserves (e.g., ~9 months PITIA), with portions sometimes collected at closing and potential waivers for higher FICOs. Prepayment options often include 1-5-year step-downs, which is vital if you plan to refinance. Appraisal & rents: Full appraisal with 1007 rent schedule; lenders qualify using the lesser of actual or market rent (caps may apply). Insurance & escrows: Escrows for taxes and insurance are standard. Hazard insurance (and flood, if applicable) is required; many lenders also require rent-loss coverage (e.g., six months). Rising premiums, especially in high-risk counties, can tighten DSCR, so get quotes early.   DSCR Loan vs. Other Investment Property Loans Choosing the right loan comes down to how the deal cash flows, how quickly you need to close, and how much documentation you are willing to provide. Of course, this is easier said than done, and verifying many variables can get overwhelming. This is how DSCR loans compare with other standard options. This table focuses on general patterns across lenders. Terms vary by program and market.   Loan type Qualifying focus Docs & credit Typical LTV & term Rate & fees (relative) Best fit DSCR Rental loan Property income (DSCR) is more than the borrower’s DTI Appraisal + rent schedule; credit & reserves reviewed ~75–80% LTV; 30-year fixed or ARM; IO options Higher than conventional; lower than most short-term loans Long-term holds when you prefer property-based underwriting Conventional (agency) investment mortgage Personal income & DTI Full income and asset docs; strong credit needed LTV caps vary by units and purpose; 15–30-year terms Lowest if you fully qualify Lower-cost debt for well-documented borrowers Bridge loan Asset + exit plan (sale or refinance) Appraisal and BPO; business plan; experience and liquidity Short term (~6–18 months); leverage varies Higher rates and points Fast acquisitions or seasoning before permanent debt Fix and Flip (rehab) loan After-repair value (ARV) and scope Budget, draws, inspections; experience helps Short term (~12 months); leverage tied to LTC or ARV Higher (construction risk priced in) Buy-rehab-sell or refi to DSCR after stabilization Portfolio or blanket rental loan Portfolio cash flow (global DSCR) Rent rolls, consolidated financials, entity structure Often up to ~75% LTV; 5–10-year terms (balloon or fixed and ARM) Middle of the pack Operators consolidating multiple rentals under one loan Disclaimer: This information is provided for educational purposes. Always check the current guidelines, fees, prepayment terms, and local insurance and tax impacts before bidding or refinancing.   Should You Use a Direct Lender, Broker, or Bank for Your DSCR Loan? When financing a rental, the company you work with can significantly impact the speed, pricing, and amount of paperwork required. This is how the three options differ and when each is most suitable.   What Is a Direct Lender? A direct lender is the company that funds the loan itself. In plain terms: The lender makes the loan; a broker does not. Brokers act as intermediaries who help you shop with multiple lenders. How does this play out with DSCR loans? Direct lenders primarily underwrite based on the property’s debt service coverage ratio, order the appraisal and rent schedule, and issue terms directly. Banks can also be direct lenders, but many DSCR programs are offered by non-bank lenders that specialize in investment properties. Banks engage in mortgage banking — originating, holding, or selling loans.   Example of a Direct Lender: LendingOne LendingOne is a direct private lender focused on real estate investors, offering DSCR rental loans among other investor products. It lends on non-owner-occupied 1-4 unit properties and provides an online application and borrower portal. For specifics on programs, see DSCR Rental Loans.   Comparing Direct Lenders, Brokers, and Banks Approval speed Direct lender: Often faster because underwriting, disclosures, and conditions stay in one shop. Broker: Timeline varies; brokers coordinate with a wholesale lender’s underwriting. Bank: Processing may be slower due to more thorough documentation and portfolio or committee reviews. Loan Variety Direct lender: Deep menu of investor-focused products (DSCR, bridge, flip) within its own credit box. Broker: Broad market access; can shop multiple wholesale lenders for niche scenarios. Bank: Strong for conventional or agency and portfolio products; may have fewer DSCR options. Rates and fees Direct lender: Competitive for its programs; pricing set in-house. Broker: Can help you compare offers; broker compensation and fees may apply in addition to lender fees. Bank: Often sharp pricing if you qualify under bank or agency rules. Documentation Direct lender: DSCR loans emphasize property income (from leases and market rent) plus credit, reserves, and entity documents. Broker: Documentation depends on the target lender’s program. Bank: Heavier personal income and DTI documentation for many programs. How to Decide Choose a direct lender if you want a streamlined DSCR process and clear, program-specific guidance from the funding source. Choose a broker if you want help shopping for multiple DSCR and investor programs with a single intake. Choose a bank if you easily qualify for conventional or portfolio terms and want potential relationship pricing or servicing under one roof.   Financing Options for DSCR Loans Within DSCR financing, loan structure directly impacts payment stability, cash flow, and when it makes sense to refinance. Here’s what investors should keep in mind: Fixed-rate (usually 30-year): Stable payment for the full term; good for long holds and budgeting. Often starts a bit higher than ARMs; you’d refinance to benefit from future rate drops. Adjustable-rate (5/6, 7/6, 10/6 ARMs): Offers a lower start rate, which is fixed for an initial period; then adjusts with caps. Works when you plan to sell or refinance in 3-10 years or expect rates to ease. Interest-only (IO) periods: Interest only for 5-10 years, then amortizing. Improves near-term cash flow and DSCR; no principal paid during IO; payment jumps when amortization begins. Some lenders size DSCR to the post-IO payment. Term & amortization: 30-year standard; some offer 40-year with an IO period. Confirm which payment (IO vs. post-IO) is used to qualify. Down payment/LTV: Purchases typically have a 75-80% LTV (approximately 20-25% down). Cash-out refinancing often caps lower. Results vary by DSCR, credit, reserves, property, and market. Prepayment: Step-downs are common (e.g., 3-2-1 or 5-4-3-2-1). Match the penalty window to your hold period. Recourse, entity, assumability: Most close to an LLC with personal guarantees; non-recourse exists at tighter terms. Assumability is lender-specific and not always offered. Short-term rentals: Many programs allow STRs but may underwrite to market rent or an average history. Model higher expenses (management, cleaning, vacancy) in DSCR.   DSCR Loan Pros and Cons DSCR Pros Easier qualification for many investors: Underwrites to the property’s cash flow rather than your personal income, tax returns, or W-2s — helpful for self-employed borrowers or those with complex finances. Faster path to scale: Because income docs are lighter, approvals can be quicker than traditional bank mortgages (still subject to appraisal and underwriting). Entity-friendly: Allows LLC or partnership ownership, making it straightforward to buy with partners and separate business from personal assets. Investment-focused: Explicitly designed for non-owner-occupied properties, aligning the loan with portfolio goals. DSCR Cons Higher cash to close: Down payments are often larger than conventional mortgages (and cash-out limits may be tighter). Pricing and fees: Expect higher interest rates, closing costs, and lender fees versus many bank and agency loans due to the risk profile and reduced personal income verification. Prepayment penalties: Many programs include a step-down prepayment, which can limit the flexibility of early sale or refinance. Not government-backed: Fewer protections than agency loans; terms vary by lender, and guidelines can change. Cash-flow risk: If rents soften or expenses rise, such as taxes, insurance, or HOA fees, the DSCR can fall below 1.0, increasing the risk of financial stress or foreclosure. Market fit matters: Not ideal for properties with unstable income or in volatile markets where vacancy or rent swings are common.   Is a DSCR Loan Right for You? DSCR loans offer incredible flexibility and are fast becoming the preferred loan vehicle for residential real estate investors today. Working with a lender well-versed in DSCR financing will give you the expertise and options you need to achieve your investment goals. Ultimately, DSCR loans may be a better option for self-employed investors, investment partnerships, or in scenarios where the property’s income potential comfortably exceeds its expenses. However, a conventional mortgage may be a more suitable and affordable choice for first-time buyers or anyone who plans to live in the property. For more information, explore the loans available for your next real estate investment. CTA button: Speak with a LendingOne Loan Advisor  

During the Pandemic Housing Boom, flipping surged as skyrocketing price appreciation drew investors in. The 2022 interest rate shock ended that frenzy, forcing many newcomers out and leaving more seasoned operators to adapt to tighter margins. ​​In early 2025, our first-ever LendingOne–ResiClub Fix and Flip Survey showed a market still digesting the fallout from the 2022 rate shock. Activity had cooled from the pandemic, but many flippers said they still planned to do deals in 2025. In today’s article, we’ll share the full results from the LendingOne-ResiClub Fix and Flip Survey for Q3 2025. The flipper survey was fielded from August 20 to September 15, 2025. The results reveal many of the same themes as our Q1 2025 survey—but the story has evolved. “Our latest survey reveals a fix-and-flip market that is both resilient and realistic,” says LendingOne CEO Matthew Neisser. “The broader macroeconomic environment, with elevated interest rates, higher inflation, and rising costs for materials and labor, has clearly ended the pandemic frenzy. However, the lack of housing inventory and the ongoing demand for updated homes have created a new landscape for experienced investors. They are continuing to find opportunities, particularly in the Midwest and Northeast, even as they face increased pressures. Meanwhile, flippers in the Southwest and Southeast, while seeing more market softness, remain optimistic about a market rebound. This strategic mindset, combined with a widespread plan to hold a portion of their flips as rental properties, highlights the adaptability of today’s professional flipper in a more challenging, yet opportunity-rich, environment.” Total Number of U.S. Home Flips by Quarter Topline Findings  1. Home Flipper Sentiment and Intent  Shifts from Q1 2025:  Market sentiment is split but steady compared to Q1: 56% of U.S. home flippers describe their primary market as somewhat strong (44%) or very strong (12%). Expectations for demand have softened: 28% of flippers now anticipate weaker demand over the next year, up from 21% in Q1 2025. Fix and Flip Activity: A strong majority of flippers (88%) still plan to complete at least one project in the next 12 months. Nearly two-thirds (64%) of flippers plan to convert at least one project into a rental property. Market Outlook: 64% of survey participants expect the fix and flip market to stay the same (42%) or weaken (22%) in 2025.  Optimism runs the highest in the South: 41% of flippers in the Southwest and 42% in the Southeast expect their market to strengthen over the next 12 months—the highest among all regions. 2. Financial Considerations Renovation Costs:  Budgets vary widely, but Northeast flippers tend to spend the most, with half (50%) investing more than $100,000 per project. 56% of respondents say kitchen upgrades deliver the best ROI. 41% of U.S. home flippers report a typical margin of 20–29%. 3. The biggest concerns across U.S. markets, according to home flippers  Organization and timeline stress: Working with contractors continues to be one of the most challenging parts of fix and flip projects (28%), followed by staying on timeline (23%), obtaining financing (21%), and budget management (17%). Two-thirds (66%) of flippers say their projects typically take 4–6 months from purchase to resale. In the Northeast, however—where regulation is heavier—12% report project timelines of 10 months or longer. Regional variation and pain points: Nationally, competition for properties (28%) and interest rates (27%) are cited as the biggest current challenges. In the Northeast and Midwest, competition is even more acute, with 39% and 37% respectively naming it their top concern. The Midwest is viewed as the strongest region, with 23% of flippers calling their market very strong and 50% calling it somewhat strong. The Southwest is seen as the weakest region, with 17% describing their market as very weak and 43% as somewhat weak. How likely home flippers are to conduct a flip in the next 12 months. Q1 vs Q3 comparison. How flippers describe the current state of their primary fix and flip market. Q1 vs Q3 comparison. How flippers describe demand for fix and flip properties in their market over the next year. Q1 vs Q3 comparison. How many projects flippers plan to convert to rentals using the BRRRR method How flippers see the market evolving over the next 12 months How flippers describe demand for fix and flip properties in their market over the next 12 months Average budget flippers report for a renovation project Profit margins flippers report on completed projects Renovations that provide the best ROI Biggest challenges flippers face with fix and flip projects Timeline of flips from purchase to resale How flippers describe the current state of their primary market Biggest challenges flippers face in their current market

Real estate investment can be a marathon, not a sprint, and for Cedric, it was a journey of careful planning, calculated risks, and continuous learning. Alongside his wife Bea, Cedric has built a portfolio of four income-producing properties since 2017, evolving his strategy from a bold, sight-unseen purchase to a meticulously planned approach focused on cash flow and long-term appreciation. A Bold Beginning: Learning from a High-Risk First Step Cedric and his wife spent years considering real estate investment, poring over books and resources, before finally taking the plunge in 2017. Their very first transaction was an unconventional one: a tax sale auction. They purchased a property sight unseen, relying only on exterior photos available online. “We decided to hit the button and hit the gas pedal,” Cedric recalls, describing the competitive bidding process. They won the auction, but the immediate thought was, “Okay, now what?” The property was in rough shape, requiring significant work. Adding to the challenge, they were living in a different state. After a 14-month process to secure a clear title, they sold the property for a profit of approximately $14,000, making a quick decision not to repeat that specific high-risk method. “It was definitely high risk,” Cedric admits, acknowledging they “got lucky” that it worked out. This initial experience, though profitable, solidified their desire for a more traditional and manageable approach. Shifting Gears: Embracing Strategic Financing Following their initial, high-octane purchase, Cedric and his wife pivoted. They decided to leverage their existing knowledge from buying personal residences. Their second, third, and fourth properties, all purchased between January 2020 and February 2025, followed a more conventional path. Initially, they financed properties in their personal name through traditional, big bank lenders and directly with builders, then transferred ownership to their LLC. However, Cedric recognized the inefficiency of this multi-step process. He sought a direct solution, leading him to LendingOne. With LendingOne, Cedric was able to secure a DSCR loan, financing his fourth property entirely under his LLC from start to finish. This streamlined approach allows him to build his portfolio more efficiently. Today, all four of his properties are fully occupied rentals, managed by a dedicated property management company. Navigating Obstacles with Tenants Cedric has faced his share of challenges. The most significant occurred with a tenant in their first conventionally purchased property in 2020. After nine months of smooth sailing, the tenant became consistently late on payments. An eviction process was initiated, but the tenant caught up. However, the issue resurfaced three months later, eventually leading to the tenant moving out. While there was some minor damage, the relatively easy resolution was a “blessing.” This experience prompted a shift in their tenant screening process. Cedric now meticulously tracks tenant history and targets individuals with a higher minimum credit score requirement. This adjustment has proven effective, leading to more consistent rent payments and fewer issues. Long-Term Vision to Scale Cedric, who recently retired, has clear long-term goals for his real estate investments. His short-term objective is to reach five properties in the next few years. Beyond that, he aims for the business to become self-sustaining. His strategy involves leveraging the equity from his existing properties as down payments for future acquisitions, aiming to grow his portfolio to at least 10 properties. This methodical expansion is designed to ensure continued cash flow and financial independence. Key Advice for Aspiring and Growing Investors Cedric offers four vital pieces of advice for those looking to get into or grow their real estate investment portfolio: Utilize a property management company: For handling day-to-day operations, rent collection, and eviction processes if needed. Timing is everything: Look to buy when the market is depressed, as he did during the onset of COVID-19 in 2020, which led to significant appreciation. Location, Location, Location: Focus on properties in good school districts (A-rated or 8/10+) and look for at least three-bedroom, two-bathroom layouts. Run the Numbers (Cash Flow is King!): Meticulously calculate all potential income against expenses (mortgage, insurance, HOA fees, property management) to ensure the property generates positive cash flow. He aims for at least a 20% gross profit margin to build cash reserves for repairs and maintain a healthy business bank account. A Smooth Lending Experience: The LendingOne Difference Cedric recounts a notably smooth experience with LendingOne, particularly compared to past interactions with other lenders. He found the process “smoother than I expected it to be,” highlighting the ease of online document submission and the efficient communication with his loan officer, Edrony, and underwriter, Pierre. Cedric explained that working with LendingOne was straightforward: “I just went to the website, uploaded… talked with Edrony… supplied additional information… and everything worked out.” He praised the entire process from application to closing as “100% fantastic.” This positive feedback underscores LendingOne’s commitment to efficient and client-focused service.

Price reductions on home listings have returned to a level not seen in nearly three years, with 21% of U.S. active listings this summer seeing a cut—up more than five percentage points from July 2024. For investors—particularly in the single-family rental space—this environment can mean stronger negotiating power and a greater chance to acquire properties at a discount. That’s why LendingOne analyzed Realtor.com’s metro-level inventory data to find where price cuts are most common and where they’re rising fastest.  Topline Findings National price cut rate reached 21% in July 2025, matching the post-pandemic high from September 2022 Price cut activity is highest in Sun Belt metros, where home prices skyrocketed during the Pandemic Housing Boom Price cuts are becoming more common in most of the largest U.S. metros, with 42 of 50 seeing more active listing prices cut than one year ago Price reductions are back at post-pandemic highs The rising share of homes with a price cut reinforces the shift toward a more buyer-friendly market that began after mortgage rates surged and the Pandemic Housing Boom ended.  Share of U.S. Home Listings with Price Reductions A single price cut doesn’t necessarily mean home values are dropping; some sellers simply overshoot the market or the true value of their property. The real signal comes from the trend. So when the share of listings with cuts rises beyond normal seasonal patterns, it suggests the market is cooling and buyers have gained leverage. Right now, that’s exactly what’s happening. Elevated mortgage rates and swelling inventory in certain metros are forcing more sellers to adjust their asking prices.  Here’s the share of U.S. home listings seeing a price reduction, by July:  July 2017 → 19.24% July 2018 → 20.59% July 2019 → 17.70% July 2020 → 11.11% July 2021 → 9.77% July 2022 → 19.13% July 2023 → 15.50% July 2024 → 19.52% July 2025 → 20.58% The U.S. metros with the deepest price cut activity Some markets are seeing price cut shares far above the national average—often those that experienced rapid pandemic-era price growth and are now adjusting to affordability limits. Share of U.S. home listings with price reductions Among the largest 100 U.S. metros, these are the 10 that saw the largest price reduced share of listings in July 2025: Denver-Aurora-Centennial, CO → 32.9% Colorado Springs, CO → 32.2% Portland-Vancouver-Hillsboro, OR-WA → 31.3% Austin-Round Rock-San Marcos, TX → 31.2% Dallas-Fort Worth-Arlington, TX → 31.2% Phoenix-Mesa-Chandler, AZ → 30.9% Salt Lake City-Murray, UT → 29.7% Indianapolis-Carmel-Greenwood, IN → 29.5% Jacksonville, FL → 29.1% Tampa-St. Petersburg-Clearwater, FL → 28.9% In Mountain West metros like Denver and Colorado Springs, years of rapid price appreciation have left affordability stretched, and elevated mortgage rates are now forcing more sellers to drop prices. West Coast markets like Portland are dealing with slower in-migration and persistent affordability challenges,  Meanwhile, Sun Belt metros, on top of dealing with the Pandemic Housing Boom price shocks, are facing intense competition from a surge in both new construction and resale listings. For investors, these areas can offer higher negotiating leverage now—especially if rental demand remains strong despite softer sales activity. Where price cuts are ramping up While metros like Denver and Austin have among the largest shares of listings being cut, the Sun Belt isn’t catching a break. Many metros here are seeing the fastest gains in price cut activity as a flood of new supply collides with softer demand, forcing sellers to get aggressive.  Mountain West markets are also posting some of the biggest jumps, even after starting with already-high price cut rates. Affordability pressures remain intense, and the seasonal bump in inventory is only adding to seller urgency—conditions that can open the door for well-timed acquisitions. Even in the Midwest, markets like Columbus are seeing momentum build as inventory piles up after a strong post-pandemic run. For investors, that could mean more negotiating leverage and a wider selection of deals as head into the next year. The share of home listings with price cuts is rising in 42 of the 50 largest metro areas Big Picture Price cuts are back at post-pandemic highs, led by Sun Belt and Mountain West metros where high rates and swelling inventory are forcing sellers’ hands. For investors, that could mean an opportunity to lock in a great deal on their next rental.

By and large, renters who remain in their homes longer signal more than just personal preference—they often indicate market stability, constrained supply, and a lower turnover rate. For real estate investors, that can translate into stronger cash flow, lower maintenance costs, and higher tenant reliability over time. According to a recent Redfin report, a third (33.6%) of U.S. renters have lived in the same home for at least five years, up from 28.4% a decade ago. On a regional level, however, the popularity of long-term rentership varies—often shaped by local affordability, supply constraints, and demographic trends. To better understand how renter stability is evolving, LendingOne analyzed Redfin’s historical tenure data to pinpoint the markets with both the largest current share of long-term renters and the most significant growth since 2013. Topline findings Inland California markets like Riverside, Stockton, and Bakersfield have seen long-term renter shares rise by over 15 percentage points since 2013. Midwest metros like Dayton and Grand Rapids are also seeing a rise in long-term rentership, driven by aging populations, affordability pressures, and limited supply. New York and Los Angeles have the highest share of renters staying 5+ years overall—driven by rent control, low turnover, and high ownership barriers that influence renters to stay put. Where long-term rentership is climbing the most In some markets, long-term renting has become the new normal. Specifically, California metros are seeing the biggest gains in long-term rentership due to a combination of housing shortages, rising home prices, and affordability pressures that make it harder for renters to move.  Limited new construction has further contributed to renters staying in place longer. In inland markets especially, these factors are locking tenants into longer stays—even as population and investor interest have grown. Long-term rentership gains popularity in 48 of the largest 50 U.S. metros Among the largest 100 U.S. metros, these are the 10 markets with the biggest percentage point jumps in long-term rentership from 2013 to 2023: Riverside, CA: +18.0% Stockton, CA: +16.7% Bakersfield, CA: +16.2% Sacramento, CA: +16.0% Oxnard, CA: +15.1% Fresno, CA: +14.9% Dayton, OH: +14.5% Las Vegas, NV: +13.5% New Orleans, LA: +11.2% Grand Rapids, MI: +11.1% The markets where long-term rentership is already the norm While some markets have seen the largest gains in long-term renters over the past decade, others already have a deeply rooted renter base. In these metros, renters staying five years or longer is the norm. These markets tend to share certain traits: older housing stock, tighter rental supply, and higher barriers to homeownership, whether due to pricing or lending challenges. For real estate investors, these markets may offer even more stability, with long-term tenants helping to ensure predictable income and lower turnover-related costs. However, investors in these markets should proceed with caution. While high-tenure markets offer predictable income and lower turnover, they can also come with drawbacks. Strict rent controls and regulatory hurdles in these areas may limit rent increases, while older housing stock can mean higher maintenance costs. Long-term rentership share in the largest 50 U.S. metros Among the largest 100 U.S. metros, these are the 10 markets with the largest share of long-term renters in 2023: New York, NY: 51.1% Los Angeles, CA: 47.8% Stockton, CA: 46.0% Springfield, MA: 43.7% Fresno, CA: 43.1% Riverside, CA: 42.8% New Haven, CT: 42.7% Oxnard, CA: 42.0% Allentown, PA: 40.8% San Francisco, CA: 40.5% Why national renter tenure is on the rise A growing number of renters are staying in place longer—not necessarily because they want to, but because moving has become more difficult. Affordability pressures are a significant driver. Home prices have surged since pre-pandemic, with the typical U.S. home price rising 49% from June 2019 to June 2025, according to LendingOne’s analysis of Zillow Home Value Index data. The result: many households are finding it harder to move, let alone transition into homeownership. Year-over-year shift in home prices across the 50 largest metro area housing markets In some regions, limited rental supply is also keeping turnover low, as tenants face fewer viable options when leases end. Additionally, an aging renter population and shifting lifestyle preferences are contributing to longer stays. Big Picture The rise in long-term rentership reflects a meaningful shift in the structure of the U.S. housing market. For many households, renting is no longer just a temporary phase—it’s a reality shaped by affordability constraints, demographic changes, and lifestyle preferences.  For investors, that shift presents both opportunities and risks. Markets with rising tenure may offer more predictable income, reduced turnover, and steadier occupancy. But they can also require longer-term strategies, especially in places with slower rent growth, tighter regulations, or an aging housing stock.

Real estate investors who locked in properties during the early years of the pandemic were rewarded with strong appreciation and, in many cases, growing rental income. But they weren’t immune to rising fixed costs—especially property taxes. Rapid home price growth during the Pandemic Housing Boom pushed up assessed values in many markets. Depending on location, those tax hikes may now be eating into operating margins and cash flow. To understand where investors are most impacted by property taxes—and where they can find the lowest rates—LendingOne analyzed the latest U.S. Census Bureau data to calculate the effective property tax rate, defined as median property taxes paid as a percentage of median home value, across hundreds of metros. Key Findings Rochester, NY has the highest effective property tax rate in the country at 2.45%, with other high-tax metros including Buffalo, Chicago, and Albany following, each with effective rates above 1.75%. Midwestern and Northeastern metros dominate the top of the list, where lower home values meet higher local tax rates. Florida metros have seen sharp increases in total tax bills, but their effective rates remain lower compared to older high-tax regions. Effective Property Tax Rate Among the largest 100 metros by occupied housing units, these ten had the highest effective property tax rates in 2023: Rochester, NY: 2.45% Chicago-Naperville-Elgin, IL-IN: 1.93% Buffalo-Cheektowaga, NY: 1.91% Albany-Schenectady-Troy, NY: 1.79% Laredo, TX: 1.64% Cleveland-Elyria, OH: 1.62% Syracuse, NY: 1.56% Scranton–Wilkes-Barre, PA: 1.55% Toledo, OH: 1.52% Milwaukee-Waukesha, WI: 1.50% In markets like Rochester and Buffalo, relatively affordable home prices can be appealing to investors—but high effective tax rates mean property taxes take a disproportionately large bite out of net operating income. Effective tax rate vs. tax bill growth: What matters for investors It’s important to distinguish between high effective tax rates and high (or fast-rising) tax bills. Several metros saw their effective property tax rates fall from 2019 to 2023 as home values rose faster than taxes paid. But the actual dollar outlay remains high. Atlantic City, NJ: down from 2.87% to 1.70% East Stroudsburg, PA: down from 2.36% to 1.44% Keene, NH: down from 2.63% to 1.84% Laredo, TX: down from 2.26% to 1.64% Lebanon-Claremont, NH-VT: down from 2.16% to 1.61% Despite the percentage drop, investors in these areas may still be paying more in absolute dollars—especially if they acquired property during the boom years. That’s because the effective tax rate is a ratio of taxes paid to property value—so if home prices surge but tax bills don’t rise at the same pace, the rate can decline while the actual amount owed increases.  For example, an investor who purchased a $250,000 home in 2020 that’s now assessed at $350,000 may face a larger tax bill, even if the effective rate has dropped from 2.2% to 1.8%. In other words, a falling effective tax rate doesn’t always translate to real savings—it can simply reflect rising home values outpacing reassessments. A high effective tax rate means a larger share of a property’s value is lost to taxes each year—an important metric for investors focused on cash flow yield, especially in lower-priced markets. A high or fast-growing tax bill can put pressure on out-of-pocket operating costs, even if the rate isn’t especially high. This is more common in fast-growing Sunbelt metros, where appreciation outpaced reassessments early in the pandemic. For investors, both can impact returns—but effective tax rate is the more stable, structural indicator of how burdensome local taxes really are. Effective tax rates in the largest 50 U.S. metros Florida metros are seeing rising tax burdens—but still lower rates Florida metros like Lakeland, Tampa, and Palm Bay have posted some of the biggest five-year increases in property tax bills, reflecting sharp home price growth and new assessments. But their effective rates remain modest relative to legacy metros. This nuance matters for investors. A market like Tampa may look affordable from a tax rate perspective, but investors entering at today’s prices should still factor in elevated tax bills as part of their underwriting. Median annual property taxes for the largest 40 U.S. metros The highest tax bills remain concentrated in expensive markets While effective tax rates highlight structural tax burdens, the biggest absolute tax bills are still found in high-priced coastal metros. New York-Newark-Jersey City, NY-NJ-PA: $9,615 San Jose-Sunnyvale-Santa Clara, CA: $9,553 Bridgeport-Stamford-Norwalk, CT: $8,840 San Francisco-Oakland-Berkeley, CA: $8,380 Austin-Round Rock-Georgetown, TX: $7,066 These metros aren’t necessarily effective tax rate outliers—but high assessed values push annual property tax payments well above the national average. Big Picture For real estate investors, property taxes are one of the largest recurring expenses—and a key driver of deal-level cash flow. Markets like Rochester, Chicago, and Buffalo have structurally high tax burdens relative to property value, making them especially important to underwrite carefully. Meanwhile, rising assessed values in markets like Florida are pushing up tax bills, even if the rate appears modest. The most successful investors in today’s market are those who go beyond surface-level affordability and dig into the real, local cost of ownership—and that means paying close attention to property taxes.

The last few years have brought sharp shifts in the rental market, with multifamily rents cooling in high-growth metros like Austin, Denver, and Phoenix.  However, in many of these same markets, single-family rents have held up better than their multifamily counterparts, creating a steady performance gap between the two sectors. National single-family rents rose +3.8% between May 2024 and May 2025, while multifamily rents rose +2.6%, according to LendingOne’s analysis of Zillow rental data. It’s a trend LendingOne continues to track closely, helping investors navigate where resilience—and opportunity—still exist. To see which markets are seeing single-family rental growth outpace multifamily rental growth the most in 2025, LendingOne analyzed year-over-year rental growth data from the Zillow Observed Rent Index (ZORI)* for the largest 100 U.S. metros. Single Family vs Multifamily Year-Over-Year Rental Growth Topline Findings Among the 100 largest markets, year-over-year single-family rental growth is outpacing multifamily rental growth in 75 markets.  In Sunbelt markets like Phoenix, Austin, and Denver, multifamily rents are falling, while single-family rents are holding up better—despite high overall supply. The strongest rental markets overall remain in the Northeast and Midwest, where both single-family and multifamily supply remains constrained and demand continues to be strong. Why is there Rental Growth Divergence? While national rents are still rising, growth has decelerated significantly since the peak of the Pandemic Housing Boom, when year-over-year single-family rent growth topped +13.4% in March 2022 and year-over-year multifamily rent growth peaked at +16.3% in February 2022. In the past year, markets like Denver, Charlotte, and Colorado Springs have seen single-family rents hold firm—or even accelerate—while multifamily rents have flattened or declined. So why is the multifamily market now seeing more softness than the single-family rental market? As of July 2025, the multifamily market is still absorbing a massive wave of new supply. According to RealPage, over 439,000 units were completed in 2023, followed by a record 671,953 units in 2024—the highest annual total since 1974. While construction is slowing—RealPage projects about 431,000 completions in 2025—many of those units are still coming online. Therefore, the divergence in single-family rental and multifamily rental growth is particularly pronounced across the Sunbelt, where multifamily developers have added supply at a rapid pace—but single-family rental demand remains steady. Difference in year-over-year single-family and multifamily rental growth Year-Over-Year Multifamily Rental Growth The softness in multifamily isn’t universal. Some markets with limited new construction and tighter housing stock are still seeing strong multifamily rent growth. In these metros, both single-family and multifamily rents are rising briskly, suggesting localized supply constraints and resilient demand across the board. Many of these strong rental markets are concentrated in the Northeast. Among the largest 100 metros, these are the top 5 with the biggest year-over-year multifamily rental gains: Augusta, GA: +7.2% Syracuse, NY: +7.2% Worcester, MA: +6.6% Bridgeport, CT: +6.4% Providence, RI: +6.1% Year-Over-Year Single Family Rental Growth The single-family rental market is not experiencing the same flood of supply as the multifamily market has. As a result, single-family rentals are benefiting from more limited inventory, especially in suburban and secondary markets where renters are prioritizing space, privacy, and flexibility. Among the largest 100 metros, these are the top 5 with the biggest year-over-year single-family rental gains: : Augusta, GA: +6.7% Indianapolis, IN: +6.5% Cleveland, OH: +6.5% Providence, RI: +6.5% Columbia, SC: +6.3% Big picture:  Overall, while multifamily markets are digesting a record wave of new units, the single-family sector hasn’t seen the same inventory growth. That’s helped keep single-family rents more stable in many metros. In places like Denver, Phoenix, and Austin, multifamily rents are flat or falling, while single-family rents remain positive. Still, in supply-constrained markets—especially across the Northeast—both rents across the board are growing, supported by tight inventory and steady demand.  For real estate investors, this trend highlights the relative strength of single-family rentals in oversupplied markets—and the importance of tracking local supply conditions.

How SFR Investors Can Win in Today’s Market The housing market isn’t what it was three or four years ago—and it’s not going back anytime soon. For single-family investors, this means adapting to a “new normal” where higher mortgage rates, increased carrying costs, and a rise in resale inventory are reshaping the investment landscape. Well gone are the days of buyers lined up around the block and bidding wars on every listing. But that doesn’t mean opportunity has vanished—it just looks different now. Many of the conditions that are causing hesitation in the broader market may work in favor of investors who approach this cycle with discipline, creativity, and a long-term mindset.  From financing strategies to market-specific deal flow as listings sit longer, to improved pricing power on insurance for larger portfolios—today’s environment rewards those who are prepared to pivot. The good news? With the right approach, investors can still uncover solid opportunities to build wealth, grow cash flow, and position themselves ahead of the next upcycle. Here are five things investors can do to win in today’s housing market. Buy the Deal, Not the Fed Waiting on the Fed to cut rates is not an investment strategy—it’s a gamble.  While many would-be investors sit on the sidelines, hoping for a pivot that may come too late or too slowly, experienced investors are staying active and searching for deals that pencil out. They’re underwriting conservatively, negotiating more aggressively, and prioritizing deals that make sense in today’s market—based on current rates, rents, and risks. Rather than chasing hypothetical upside tied to future monetary policy, they’re baking in downside protection on the front end. It’s not about timing the Fed. It’s about structuring the deal so that it works with the hand you’re dealt today. More Inventory Is An Opportunity for Value Buyers  After a long stretch of near-record-low active inventory, single-family investors are finally seeing more resale homes come to market. For some, that might sound like bad news—more competition, less pricing power. However, the reality is that this normalization creates opportunities, particularly for disciplined buyers who focus on value. In some markets, specific properties are now remaining on the market for extended periods. Sellers growing fatigued by slow sales may be more willing to negotiate, opening doors for buyers to purchase homes below their previous peak prices. Especially in Q3 and Q4, expect pockets of deals that require some repairs or capital expenditures—classic value-add plays where investors can boost rents and equity over time. Investor Sentiment: More Bullish Despite the Headwinds Interestingly, when we fielded the LendingOne–ResiClub SFR Investor Survey this quarter, we found that investors are becoming more confident about buying—even as they acknowledge that the market feels slower and mortgage rates are higher than previously expected. In fact, in Q2 2025, 79% of single-family investors said they’re likely to purchase at least one more property in the next 12 months. That’s up from 61% in Q2 2024 and 77% in Q4 2024. This shift signals that many are embracing the new normal rather than waiting for old conditions to return. They recognize that market dynamics have changed permanently and are adjusting acquisition criteria accordingly, or they may be attracted by rising inventory and some markets turning into buyers’ markets. This pragmatic mindset bodes well for the single-family investment space. Rather than being paralyzed by uncertainty, investors who stay disciplined, focus on fundamentals, and pursue value will be best positioned to succeed. Insurance Stability Emerging After the Storm—Don’t Be Afraid to Policy Shop The last few years have seen a surge in property insurance costs, fueled by rising replacement values. However, according to our intel, this lagged inflationary spike is beginning to level off. This provides investors with better clarity for cash flow projections and long-term planning. And if you’re savvy, you’ll even be able to get it lowered a little. For those with multiple properties, now is an ideal time to explore portfolio-level insurance, which spreads risk across your holdings and can unlock significant discounts.  Even for smaller landlords, policy shopping—getting fresh quotes, reassessing coverage levels, and comparing carriers—can yield real savings in a market that’s no longer spiking month after month. It’s Time To Be Strategic!  Yes, the housing market today looks very different from the frantic boom of the pandemic years. But for single-family investors willing to think strategically and embrace change, it remains fertile ground for growth. Whether it’s taking advantage of ARMs, leveraging portfolio-level insurance savings, or hunting down value deals in rising inventory. The market’s “new normal”—and no one truly knows how long it’ll last—might require a little more patience and flexibility, but it also offers a real opportunity for those ready to adapt and invest with their eyes wide open.

The single-family build-to-rent (BTR) category isn’t niche anymore—it’s mainstream. Annual BTR deliveries hit 39,000 homes in 2024, a 455% jump from pre-pandemic 2019 levels. As of April 2025, there are another 90,000 purpose-built single-family rental units in active development across the country’s 100 largest metros. There’s a good reason why build-to-rent supply is up: renter preferences are shifting. According to a 2024 survey by John Burns Research and Consulting (JBREC), 36% of BTR residents now say they prefer renting over owning, up from 27% in 2023. That jump signals that more of today’s BTR renters aren’t just settling for rentals because they’re priced out—they’re actively choosing the lifestyle, flexibility, and convenience that BTR communities offer. But who exactly are the folks choosing to live in build-to-rent communities? What motivates them to rent rather than buy—and what keeps them there? To answer these questions, LendingOne analyzed the latest data. Here are 3 things to know about BTR renters in 2025. 1. Renters Want More Space That shift is clear: BTR homes increasingly cater to families who need extra space for kids, work-from-home setups, or multigenerational living. It’s part of what makes BTR communities fundamentally different from traditional apartment offerings, and a reason renters who would have once transitioned to homeownership are staying put. More Spacious Single-Family Rentals Are the New Normal 2. Preference for Renting is Ticking Up Across All Life Stages In 2024, renters at all life stages reported a stronger preference for renting than they did just a year earlier. BTR is a particularly attractive option for millennials who are reaching the prime age for major life milestones like child-rearing. Young singles/couples who rent in BTR communities, in particular, saw a 12-point jump in their preference for renting (from 23% in 2023 to 35% in 2024). Young families also experienced a 12-point increase (from 17% to 29%). It’s also an appealing option for empty nesters who want the financial flexibility and lifestyle ease of renting versus owning. Mature families and older adults—once assumed to be natural buyers—are also embracing rental life. In 2024, nearly half (46%) of mature singles and couples living in BTR communities say they are there by preference, up from 42% the year before. While the extra space is a bonus for the older crowd, they are also drawn to the amenities that tend to come along with BTR communities, including swimming pools, fitness centers, tennis courts, and clubhouses. This preference shift reflects a broader cultural change: renting, especially in high-quality, well-managed BTR communities, is now seen as a lifestyle choice, not a compromise. Share of Build-to-Rent Residents that Prefer to Rent 3. Affordability Math has Some Americans Renting Longer While preferences are shifting, strained home affordability remains a primary driver of build-to-rent’s growing popularity. In nearly every major metro, the monthly mortgage payment for a median-priced single-family home significantly exceeds the average monthly rent for a comparable BTR home. In San Francisco, the gap is over $4,000. In San Diego and Seattle, it’s more than $2,900. Even in fast-growing Sunbelt markets like Austin, Raleigh, and Phoenix, a mortgage payment for a single-family home costs about $1,100 more per month than renting one. That gap explains why many would-be buyers are choosing to stay in rental homes longer. The math just doesn’t make sense for many households—especially younger families who may not have the savings or income stability needed to qualify for today’s higher mortgage rates. Strained affordability blocks some renters from homeownership Big Picture For some Americans, build-to-rent homes are no longer a stepping stone—they’re a destination. With demand driven by young families, working professionals, and downsizing retirees, BTR communities offer the space, flexibility, and lifestyle that today’s renters increasingly seek.  That appeal is reflected in the scale of the U.S. build-to-rent pipeline, which now exceeds 90,000 units across the 100 largest metros. Even in BTR-saturated markets like Phoenix, Dallas, and Atlanta, development remains active. For real estate investors, that persistence signals confidence in the category’s long-term staying power.