Report: Single-Family Rental Yields Tighten 

The finest U.S. markets for purchasing single-family rental properties in 2026 are ranked in ATTOM’s annual Single-Family Rental Market report.

Of the 341 counties with adequate data for both years, some 54.8% (187) had decreasing rental yields from 2025 to 2026. These declines in profitability occur even though in over half of the counties, rent hikes have outpaced increases in housing prices. Between 2025 and 2026, median rents increased more quickly than median sales prices in 55% (229) of the 416 counties with enough rent and price data for analysis.

“Many landlords have been able to offset higher acquisition costs with rent growth, but returns are tightening in a majority of counties,” said Rob Barber, CEO of ATTOM. “Even though rents and wages are rising in many markets, record-high home prices are compressing yields. Investors will need to be more selective, focusing on markets where rent growth and affordability trends continue to support strong returns.”

Low Rental Return Projections Vary by Region

ATTOM’s latest SFR Market report also showed that midwestern counties are anticipated to have the highest rental returns nationwide.

The counties with the highest potential gross rental yields for three-bedroom apartments in 2026 were:

1. Saint Clair County, IL (14.5%)
2. Mobile County, AL (13.6%)
3. Peoria County, IL (12.5%)
4. Saint Louis County, MN (11.6%)
5. Trumbull County, Ohio (11.5%)

The counties with the lowest potential rental yields in 2026 were:

1. Walton County, FL (3.1%)
2. Santa Clara County, CA (3.1%)
3. Williamson County, TN (3.3%)
4. Loudoun County, VA (3.6%)
5. San Mateo County, CA (3.7%)

Further, potential rental yields on three-bedroom apartments decreased in an estimated 54.8% (187) of the 341 counties with enough data for analysis between 2026 and 2025.

The counties with the largest declines in potential yields were:

1. Atlantic County, NJ (down from 17.5% in 2025 to 8.5% in 2026)
2. Suffolk County, NY (down from 17.7% to 10.8%)
3. Indian River County, FL (down from 11.9% to 7.9%)
4. Maui County, HI (down from 8% to 4.2%)
5. Caddo Parish, LA (down from 10.3% to 7.2%)

Among those largest counties, the biggest increases in potential rental yields were in:

1. Alameda County, CA (up from 3.8% to 4.5%)
2. Cook County, IL (up from 9.2% to 9.8%)
3. Hillsborough County, FL (up from 6.8% to 7.2%)
4. Sacramento County, CA (up from 5.7% to 6.1%)
5. Fresno County, CA (up from 6.5% to 6.9%)

Wages also play a large role in rental returns. In 63% (262) of the 416 counties, typical incomes grew faster than three-bedroom rents between 2025 and 2026. Additionally, in 66.8% (278) of the 416, wages increased faster than median home sale prices.

According to ATTOM’s report, there were eighteen “SFR Growth” counties whose projected rental yields in 2026 surpassed 10% and average earnings increased during the previous year, being considered best single-family rental markets to purchase in. Those counties included:

1. Suffolk County, NY
2. Onondaga County, NY
3. Lucas County, Ohio
4. Mobile County, AL
5. Collier County, FL

Overall, potential rental yields are falling in most U.S. counties, as record-high property prices increase investors’ purchase costs. Higher property values are reducing overall returns in many areas, even if rents are increasing more quickly than home prices in 55% of counties, with Midwestern counties leading with the highest prospective rental yields in 2026.

Note: The report examined single-family rental returns in the 416 counties with sufficient rental and home sales price data to analyze. The analysis for this report incorporated data compiled by ATTOM on average rents, as well as median home prices from public-record sales deeds in counties with sufficient single-family home sales data.