This week, analysts at LendingOne set out to find the top single-family rental markets where, despite spiked mortgage rates and spiked home prices, investors can still find cash-flowing properties.
LendingOne’s top-line findings:
- A lack of inventory presents a double-edged sword for investors. On one hand, it helps to maintain the value of investors' current portfolios; on the other hand, it makes it more challenging to find cash-flowing properties.
- Many of the best cash-flowing opportunities right now are in lower-cost Midwest and Northeast markets.
- Single-family rental investors are finding fewer cash-flowing opportunities in high-cost coastal markets like San Francisco, as well as pandemic boomtowns like Salt Lake City and Austin.
Among the 50 largest U.S. counties, these 5 have the highest annual gross yields:
- Wayne County, Michigan: 12.0%
- Allegheny County, Pennsylvania: 11.2%
- Cuyahoga County, Ohio: 10.2%
- Cook County, Illinois: 10.1%
- Riverside County, California: 9.7%
Among the 50 largest U.S. counties, these 5 have the lowest annual gross yields:
- Santa Clara County, California: 3.0%
- Honolulu County, Hawaii: 4.1%
- Fairfax County, Virginia: 4.2%
- Kings County, New York: 4.4%
- Alameda County, California: 4.4%
