Positive data indicators in the growing single-family rental (SFR) market signal ample opportunities for investors to profit and flourish in this space. Which markets provide the most opportunity for SFR investors?
RentRange identified the top 25 metropolitan statistical areas (MSAs) with the largest rental rate increases from last year and highest gross yields, or the total annual income an investor receives from an investment property divided by the price or value for the property, for the first quarter of 2016.
“The single-family rental market across the U.S. continues to offer significant opportunity for investors,” said Wally Charnoff, CEO of RentRange. “The robust data available today empowers even non-institutional investors to analyze geographies and select the investment locations throughout the U.S. that are most opportune, as opposed to being limited to their own backyard.”
RentRange’s report showed that six out of the top 25 SFR markets (and three out of the top four) with the highest rental price increases were located in Florida for Q1, a slight increase over-the-quarter, indicating a steady trend of SFR increases in the Sunshine State, according to RentRange.
Syracuse, Milwaukee, New Orleans, and Gainesville led all rental markets in highest average gross yield, according to RentRange. All four of those markets experienced double-digit rental increases and all but Gainesville reported double-digit average gross yields (Gainesville barely missed double digits in that category with 9.74 percent).
“The single-family rental market across the U.S. continues to offer significant opportunity for investors.”
Wally Charnoff, CEO, RentRange
Although markets in southern states dominated RentRange’s overall list for Q1, markets in both Wisconsin (Milwaukee and Madison) and New York (Syracuse and Buffalo) are beginning to dent the lists for both rental price increases and average gross yield.
The Five Star Institute President and CEO Ed Delgado recently announced the formation of the Single-Family Rental Association (SFRA), a member-led conduit for connection and training in the growing single-family rental market. The SFRA will lead the single-family rental sector in identifying emerging trends, discussing solutions, and formulating best practices. Click here to apply for membership.
“The Single-Family Rental Association will be leading the dialogue on best practices and new business opportunities in the single-family rental market,” Delgado said. “The SFRA will fill the gap as a resource for a sector that has been largely underserved and often misrepresented.”
The SFRA will offer ongoing training and education, networking, and business opportunities, in conjunction with the Five Star Institute’s Second Annual Single-Family Rental Summit on November 1-3, 2016 at the Frisco Conference Center at the Embassy Suites Hotel, Frisco, Texas.
Click here to register for this event.
Editor's note: The Five Star Institute is the parent company of DS News and DSNews.com.