Unlock the Hidden Single-Family Rental Data Secrets That Slap Your ROI Into Overdrive—Here’s How Top Investors Are Crushing It!
Gross Rental Yield
No metric matters more for ROI-seeking investors than gross rental yield. This figure, included in Equity’s SFR reports, is calculated as:
Gross Rental Yield = (Annual Rent ÷ Purchase Price) × 100
So, a $200,000 home generating $20,000 in annual rent would have a 10% gross rental yield.
Yield helps you quickly compare markets at a glance. Markets like Cuyahoga County, Ohio, or Wayne County, Michigan, often offer yields over 10%, reflecting strong cash flow opportunities. By contrast, high-cost coastal markets like Los Angeles or Miami may have yields closer to 4% to 5%, where appreciation might be the play rather than immediate income.
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