Of all major U.S. cities, Detroit's single-family rental market offers the highest return on investment due to its lower home prices and high renter demand.
The single-family rental market is growing in popularity as renters look for more long-term housing options. But some markets are proving to offer higher returns on investment than others, according to a recent survey from rental price comparison platform Rentometer, which analyzes rental yields across U.S. cities to identify the best and worst markets for investors. Among large cities, Detroit offers the highest rental yield at 21.95%, thanks to the low average home price of $71,503 and solid rental demand. Cleveland follows with a 16.59% yield. There, the average home price is just $110,000.
With a revitalized downtown and improving infrastructure, Cleveland remains a solid option for buy-and-hold investors. According to Mortgage Professional America, a growing number of out-of-state investors are driving demand in Cleveland's housing market, attracted by its low entry prices and steady rental income potential. Read more
