Tops on the list was a Toledo, Ohio zip code (119.4 percent).
This ranking was part of an overall study by ATTOM Data Soulutions (Q1 2017 Single-Family Rental Market Report) that ranked the best markets for buying single-family rentals among 375 U.S. counties (each with a population of 100,000) and more than 6,000 zip codes (each with a population of 2,500 or more).
RealtyTrac presented the findings on its site this week.
“While good returns on single family rentals are hard to come by in high-priced coastal markets and in some other housing hot spots such as Denver and parts of Dallas, Austin and Nashville, solid returns on single family rentals will continue to be available in many parts of the Southeast, Rust Belt and Midwest for investors purchasing in 2017,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “And single family rentals should continue to yield strong returns in many parts of the country going forward given the market undercurrents of low rent-ready housing inventory and low homeownership rates. Average fair market rents increased in 2017 in 86 percent of the markets we analyzed even while average wage growth outpaced rent growth in 67 percent of markets — a recipe for sustainable growth in the rental market.”
According to the report, a three-bedroom single-family home in Jefferson County in 2017 will cost $1,258 per month, an annual gross rental yield of 11.8 percent this year. Jefferson County ranked No. 53 out of 375 counties.
The Huntsville metro area will see rents for a three-bedroom house at $1,088 during 2017, with a 9.1 percent yield rate.
Mobile County had the highest ranking of any Alabma county at No. 25 out of 375 counties with a 14.1 percent annual gross rental yield and a $1,244 per month rental rate for a three-bedroom home.
Baldwin County ranked No. 102 on the list with a $1,524 per month rental rate with a 10.1 percent annual gross rental yield in 2017.