ATTOM has released its Q1 2025 Single-Family Rental Market report, ranking the best U.S. markets for buying single-family rental properties in 2025. The report analyzed single-family rental returns in 361 U.S. counties with sufficient rental and home-price data. The report shows that the annual three-bedroom gross rental yield (annualized median gross rent income divided by median purchase price) among the 361 counties analyzed is projected to be 7.45% in 2025—down slightly from an average of 7.52% in those same markets during 2024.
Investment returns for landlords have slipped as home prices are rising faster than rents across slightly more than half the country. From 2024-2025, median single-family home prices rose more than median three-bedroom rents in 54% of the markets analyzed. The gaps–usually more than three percentage points–pushed rental yields downward.
“The fallout from rising single-family home values is proving beneficial for long-time landlords, as increasing property prices drive rents higher. However, for new investors entering the rental market, conditions are becoming more challenging nationwide,” said Rob Barber, CEO at ATTOM. “Unless home prices stabilize or more properties become available for sale, this trend is likely to persist in the near future.”
Over the past year, median single-family home prices have gone up in about two-thirds of the counties with enough data to review, with increases generally ranging up around 10%. At the same time, typical three-bedroom rents have increased in barely more than half those areas, with gains mostly topping out at roughly 7%.
Where Are the Top Rental Returns Located?
Counties with the highest potential annual gross rental yields on three-bedroom properties for 2025 include:
- Suffolk County, New York, in the New York City metro area (18%)
- Atlantic County, New Jersey, in the Atlantic City area (16.8%)
- Jefferson County, Alabama, in the Birmingham area (13.6%)
- Mobile County, Alabama (12.9%)
- Ector County, Texas, in the Odessa area (12.5%)
Aside from Suffolk County, the highest potential annual three-bedroom gross rental yields in 2025 among counties with a population of at least one million were reported in:
- Wayne County (Detroit), Michigan (10.9%)
- Cuyahoga County (Cleveland), Ohio (10.1%)
- Allegheny County (Pittsburgh), Pennsylvania (9.8%)
- Cook County (Chicago), Illinois (9.2%)
Rental Returns Decrease Nationwide
Potential annual three-bedroom gross rental yields for 2025 have gone down compared to 2024 in 57% of the counties analyzed in the report. The biggest drop-offs were reported in:
- Litchfield County, Connecticut (outside Hartford) (yield down from 17.1% in 2024 to 11.7% in 2025)
- Champaign County, Illinois (down from 12.5% to 9.3%)
- Monroe County (Rochester), New York (down from 12.6% to 9.8%)
- Santa Barbara County, California (down from 10% to 7.4%)
- Mercer County (Trenton), New Jersey (down from 11.8% to 9.8%)
The biggest decreases in potential annual gross rental yields from 2024-2025 among counties with a population of at least one million are in:
- Los Angeles County, California (yield down from 7.1% in 2024 to 6.1% in 2025)
- Palm Beach County (West Palm Beach), Florida (down from 7.6% to 6.8%)
- Wayne County (Detroit), Michigan (down from 11.7% to 10.9%)
- Riverside County, California (down from 9.5% to 8.7%)
- Allegheny County (Pittsburgh), Pennsylvania (down from 10.4% to 9.8%)
Lowest Rental Returns in the West
Counties with the lowest potential annual gross returns for 2025 on three-bedroom rentals are:
- Santa Clara County, California, in the San Jose metro area (2.9%)
- San Mateo County, California, in the San Francisco area (3.3%)
- Williamson County, Tennessee, in the Nashville area (3.4%)
- Walton County, Florida, in the Crestview-Fort Walton Beach area (3.7%)
- Alameda County, California, in the San Francisco area (3.8%)
Aside from Santa Clara and Alameda counties, the lowest potential annual gross three-bedroom rental yields in 2025 among counties with a population of at least one million are in:
- Honolulu County, Hawaii (4.1%)
- Fairfax County, Virginia in the Washington, D.C., metro area (4.2%)
- Kings County (Brooklyn), New York (4.2%)
Wages Rising Faster Than Rents
Average wages are growing faster than median three-bedroom rents in 69% of the counties analyzed, including:
- Los Angeles County, California
- Cook County (Chicago), Illinois
- Harris County (Houston), Texas
- Maricopa County (Phoenix), Arizona
- San Diego County, California
Median three-bedroom rents are increasing faster than average wages in 31% of the counties measured, including:
- Suffolk County, New York (outside New York City)
- Franklin County (Columbus), Ohio
- Oakland County, Michigan (outside Detroit)
- Hennepin County (Minneapolis), Minnesota
- Cuyahoga County (Cleveland), Ohio
Home Prices Rising Faster Than Rents
Median home prices are going up more than median three-bedroom rents in 196 of the 361 counties analyzed (54%), including:
- Los Angeles County, California
- Cook County (Chicago), Illinois
- Maricopa County (Phoenix), Arizona
- San Diego County, California
- Orange County, California (outside Los Angeles)
Median three-bedroom rents prices are rising faster than median home prices in 165 of the counties analyzed (46%), including:
- Harris County (Houston), Texas
- King County (Seattle), Washington
- Santa Clara County (San Jose), California
- Sacramento County, California
- Philadelphia County, Pennsylvania
Average wages are increasing faster than median home prices in 60 percent of the counties analyzed, including:
- Harris County (Houston), Texas
- Maricopa County (Phoenix), Arizona
- Orange County, California (outside Los Angeles)
- Dallas County, Texas
- Riverside County, California
Median home prices are increasing faster than average wages in 40% of the counties analyzed, including:
- Los Angeles County, California
- Cook County (Chicago), Illinois
- San Diego County, California;
- Miami-Dade County, Florida
- Kings County (Brooklyn), New York
Best SFR Growth Markets
The report identified 28 “SFR Growth” counties where average wages grew over the past year and potential 2025 annual gross three-bedroom rental yields exceed 10%. The 28 SFR Growth markets include:
- Wayne County (Detroit), Michigan
- Suffolk County, New York (outside New York City)
- Cuyahoga County (Cleveland), Ohio
- Shelby County (Memphis), Tennessee
- Hidalgo County (McAllen), Texas
