Attom Says Rental Yields Are Falling In 55% Of Us Counties

Rental returns for single-family investors are shrinking in many U.S. markets as record-high home prices push acquisition costs higher, according to report released Thursday by ATTOM.

The property data and analytics firm’s 2026 Single-Family Rental Market report analyzed rental returns across 416 counties with sufficient rent and home sales data. The analysis combined average rents, median home prices from public sales records and wage data from the U.S. Bureau of Labor Statistics.

The report said that rental yields declined from 2025 to 2026 in 54.8% of the 341 counties with comparable data for both years.

The pullback in profitability for investors has come even as rents continue to rise in many areas. Median rents increased faster than median home prices in 229 (55%) of the counties analyzed.

The national median home sales price reached a record $360,000 last year, raising the upfront cost for investors and squeezing potential profits.

“Many landlords have been able to offset higher acquisition costs with rent growth, but returns are tightening in a majority of counties,” Rob Barber, CEO of ATTOM, said in a statement. “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.”

Midwest markets showed some of the strongest potential rental returns for 2026. Counties with the highest projected yields for three-bedroom rental properties included St. Clair County, Illinois (14.5%); Mobile County, Alabama (13.6%); Peoria County, Illinois (12.5%); St. Louis County, Minnesota (11.6%); and Trumbull County, Ohio (11.5%).

Among counties with populations above 1 million, the highest projected returns were in Suffolk County, New York (10.8%); Cook County, Illinois (9.8%); Cuyahoga County, Ohio (9.5%); Harris County, Texas (8%); and Oakland County, Michigan (7.8%).

Some high-cost markets posted the lowest projected yields. Counties with the weakest returns included Walton County, Florida (3.1%); Santa Clara County, California (3.1%); Williamson County, Tennessee (3.3%); Loudoun County, Virginia (3.6%); and San Mateo County, California (3.7%).

Wage growth has helped offset some affordability pressures. Wages rose faster than rents in 63% of counties analyzed and outpaced home price increases in about two-thirds of markets.

ATTOM identified 18 counties where wage growth coincided with potential rental yields above 10%, including Suffolk County, New York; Onondaga County, New York; Lucas County, Ohio; Mobile County, Alabama; and Collier County, Florida.

“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, vice president of product and wholesale at Constructive Capital.

“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,” he added.