Top 5 Hottest SFR Markets

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Sign up for DS News Daily Single-Family Rentals 2017-07-11 Brianna Gilpin in Daily Dose, Featured, Market Studies, News About Author: Brianna Gilpin Related Articles Tagged with: Single-Family Rentals Home / Daily Dose / Top 5 Hottest SFR Markets Demand Propels Home Prices Upward 2 days ago Previous: Things That Go Down, Must Go Up? Next: Celebrating the Women Leaders in Housing and Mortgage Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days agocenter_img Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save July 11, 2017 1,347 Views The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Top 5 Hottest SFR Markets Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected]  Print This Post The single-family rental home market is consistently growing across the nation, according to HouseCanary, Inc. Rental Investment Index second quarter update.Composed of nearly 20 million homes, the HCRI Index allows single-family rental home investors, lenders, and renters to keep track of the health of the single-family-for-lease market based on median Effective Gross Yields on national, state, and ZIP code levels.Due to difficulties in benchmarking this market, the HCRI helps investors identify accurate information regarding this surprisingly growing rental market.“The ability to know where to invest with this level of granularity has never been possible before, and it is going to revolutionize this market,” said Dave Garland, a single-family rental investor, and Partner at Second Century Ventures.Effective Gross Yields were highest in the Midwest and the South, making states in these regions the top performers nationwide. Mississippi leads the states at 12.9 percent, followed by Indiana and Ohio.However, according to HouseCanary, the most notable update this quarter is the difference in yields within the highest and lowest Metropolitan Statistical Areas (MSAs).Rochester, New York earns the spot of the national leader in Effective Gross Yield with 17.2 percent. The following top MSAs include Memphis, Tennessee, Cleveland, Ohio, Buffalo-Cheektowaga-Niagara Falls, New York, and Birmingham-Hoover, Alabama. These cities with the highest percentage of yields all surpassed 12 percent effective yields on average, higher than any state last quarter.The lower part of the list is filled with MSAs from California, six cities specifically, where housing prices continuously increase faster than the growth in rents. In fact, California cities make up the three lowest effective yields, all below 5 percent.Overall, 28 of the top 50 MSAs in the country surpassed the nationwide average Effective Gross Yield of 8 percent this quarter.last_img read more