Rental yields for single-family homes have declined slightly in the past year, but in many regions of the U.S., purchasing a single-family rental is still a worthwhile investment. According to property data provider ATTOM's Q1 2025 Single-Family Rental Market Report, the rental yield for the average three-bedroom property in the U.S. is 7.45%, compared with 7.52% in 2024. Additionally, nearly 60% of counties analyzed in the report are expected to see rental yield decreases after a period of growth in some markets between 2023 and 2024.
These decreases are largely attributed to rising home prices, which have increased by around 10% in two-thirds of counties, while rent growth has lagged. Despite the overall decline, some markets remain attractive for investors. Suffolk County, N.Y., leads with an expected 18% yield, while Atlantic County, N.J., and Jefferson County, Ala., offer rental yields of 8% and 6%, respectively.
The Q1 single-family rental report noted that over the past year, the counties projected to have the lowest potential annual gross rental returns on three-bedroom properties in 2025 include Santa Clara County, CA, in the San Jose metro area (2.9%); San Mateo County, CA, in the San Francisco area (3.3%); Williamson County, TN, in the Nashville area (3.4%); Walton County, FL, in the Crestview-Fort Walton Beach area (3.7%); and Alameda County, CA, in the San Francisco area (3.8%). Read more
