Investor returns in the U.S. single‑family rental (SFR) market are under pressure in 2026, according to the latest annual report from property data firm ATTOM. The 2026 Single‑Family Rental Market Report finds that potential rental yields on three‑bedroom homes have declined in a majority of U.S. counties, driven largely by record‑high home prices that are compressing profitability for landlords.
ATTOM’s analysis examined 416 counties with sufficient data, combining average rent figures, median home sales prices, and Bureau of Labor Statistics (BLS) wage data to evaluate market returns. Rental yields fell from 2025 to 2026 in 54.8% of the 341 counties with comparable data, even though rental rates increased faster than home prices in 55 percent of jurisdictions analyzed.
“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.”
Last year marked a historic high for the national median sales price of single‑family homes at $360,000, increasing acquisition costs for investors. This surge in prices has squeezed yields, particularly in some traditionally strong markets, despite landlords benefiting from rent growth and rising wages in many areas.
Examining Regional Returns
The report highlights several counties in the Midwest as among the most attractive for potential returns in 2026. Saint Clair County, Ill. led the nation with an estimated 14.5% gross rental yield, followed by Mobile County, Ala. (13.6%), and Peoria County, Ill. (12.5%). Among large metropolitan counties, Suffolk County, N.Y. (10.8%) and Cook County, Ill. (9.8%) topped projections.
By contrast, high‑cost regions such as Santa Clara County, Calif. and Walton County, Fla. posted some of the lowest potential yields (near 3%), underscoring the challenges investors face in expensive coastal markets.
The report also notes that wages rose faster than both rents and home prices in a majority of counties, offering some support for housing affordability.
The largest counties where wages outpaced rents were found in:
- Los Angeles County, Calif.
- Harris County, Texas
- Maricopa County, Ariz.
- San Diego County, Calif.
- Orange County, Calif.
"With rental yields tightening and home prices at record levels, investors need more strategic financing. The right mortgage broker, backed by strong lending partners, can structure DSCR rental loans and present the investor with options that keep deals viable in tougher markets," said Kyle Concannon, VP of product and wholesale, Constructive Capital. "As rental yields tighten nationwide, investors are being forced to think beyond price and rent growth. Mortgage brokers with their lending partners help bridge that gap by structuring financing that reflects today’s economic reality."
