Skip to main content

New Report Analyzes Single-Family Rental Housing Yields by ZIP Code

Phil Hall
Oct 19, 2017
Atlanta’s housing market recorded fewer sales and higher prices in June, according to new data from the Atlanta Realtor’s Association

When it comes to purchasing single-family rental homes, the magic number is 30238—which is the ZIP Code for the market where buyers of these properties see the greatest potential in rental yields and cash flows.
According to a report from ATTOM Data Solutions, the rental markets in 4,854 ZIP Codes and 439 counties with sufficient rental and home price data were studied for their financial yields, vacancy rates and tax and maintenance costs. Among the top 25 ZIP Codes with the strongest potential annual gross rental yield—defined as annualized gross rent income divided by median purchase price for single family homes—during the third quarter were 30238 in the Atlanta metro area (17.7 percent); 77373 in the Houston metro area (13.5 percent); 34472 in the Ocala, Fla., metro area (13.1 percent); 76140 in the Dallas-Fort Worth metro area (12.7 percent); and 30228 in the Atlanta metro area (12.6 percent).
Daren Blomquist, Senior Vice President at ATTOM Data Solutions, noted these markets were “located in neighborhoods with relatively low vacancy rates and with home price growth and population growth—which should continue to put upward pressure on rental rates.”
As for who is purchasing these properties, institutional investors accounted for 2.9 percent of all single-family home sales in the third quarter, up from 2.3 percent in the previous quarter but down from 3.1 percent one year earlier. However, the institutional investor share of single family home purchases increased from a year ago in 136 of the 439 counties (31 percent) and in 1,804 of the 4,854 zip codes (37 percent) analyzed in the report. And at the other end of the spectrum, the lowest potential rental property returns were in coastal metro areas with pricey housing markets, led by ZIP Codes in the Miami, Los Angeles, Santa Barbara, New York and San Jose localities. 
Oct 19, 2017
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021
Interfirst Mortgage Launches ONE, Backed By Non-Owner Occupied Properties

ONE is a unique product built on a single interest rate with no adjustments and qualifies off the cash flow of the rental property.

Industry News
Jul 16, 2021
Global Digital Lending Market Projected To Reach $27B By 2028

The Global Digital Lending Platform Market was valued at $7.14 billion in 2020 and is projected to reach $27.07 billion by 2028.

Analysis and Data
Jul 14, 2021
FOMC Discusses Raising Interest Rates

Inflationary pressures have finally forced the Federal Open Market Committee (FOMC) to discuss raising interest rates and tapering its bond-buying program.

Analysis and Data
Jul 14, 2021
Fathom Holdings Inc. Creates New Hispanic Division

Fathom Holdings Inc., a technology-driven real estate platform, announced the creation of their Hispanic Division to more adequately serve this fast-growing demographic. 

Industry News
Jul 07, 2021