Single-Family Rental Returns Analysis: 2026 Sees Decline in Rental Yields

The U.S. single-family rental market in 2026 is facing tighter yields as rising property prices continue to squeeze investor profits. According to ATTOM’s annual Single-Family Rental Market Report, a substantial number of counties across the U.S. are seeing declining rental returns despite higher rents.

Between 2025 and 2026, the majority of U.S. counties experienced tightening rental yields, with 54.8% of counties showing a decline in potential rental returns. This trend is reflective of the high property acquisition costs, which are reducing profitability for landlords, despite strong rent increases in many markets.

As a result, investors looking to purchase single-family rental properties must now focus more selectively on areas where both rent growth and affordability trends continue to align for strong returns.

Key Findings: Rising Property Prices vs. Rent Increases

The report found that median rents increased faster than median home prices in about 55% of U.S. counties. However, even in these areas, the rental yields have still been compressed due to the rise in home prices. This indicates that even though rents are higher, investors are paying more upfront for properties, reducing their overall returns.

“While rents are growing in many markets, the rising home prices are still outpacing these increases, leading to lower yields for property owners,” said Rob Barber, CEO of ATTOM. “The reality for investors is that, despite rising rents, the higher cost of acquiring homes is cutting into profitability.”

Top U.S. Counties for Rental Yields

The report provided insight into the counties where single-family rental properties still offer strong returns, with Midwestern counties leading the charge in 2026.

Among the counties with the highest potential gross rental yields for three-bedroom homes are:

• Saint Clair County, IL: 14.5%
• Mobile County, AL: 13.6%
• Peoria County, IL: 12.5%
• Saint Louis County, MN: 11.6%
• Trumbull County, OH: 11.5%

These regions offer investors higher rental yields compared to other parts of the country, making them attractive areas for those looking to purchase single-family rental properties in 2026.

Lowest Rental Yields in 2026

On the other end of the spectrum, high-demand, high-price counties are seeing the lowest rental yields in 2026. These include areas where home prices have significantly outpaced rent growth, leading to reduced returns for investors.

Counties with the lowest rental yields include:

• Walton County, FL: 3.1%
• Santa Clara County, CA: 3.1%
• Williamson County, TN: 3.3%
• Loudoun County, VA: 3.6%
• San Mateo County, CA: 3.7%

These regions, while desirable for homebuyers, offer limited rental return potential due to the high cost of purchasing properties.

Counties With the Biggest Declines in Rental Yields

The report also identified counties that experienced the largest drops in rental yields between 2025 and 2026. In many of these regions, rents have not kept pace with the skyrocketing property prices, leading to a sharp reduction in investor returns.

The counties with the largest declines in rental yields are:

• Atlantic County, NJ: From 17.5% in 2025 to 8.5% in 2026
• Suffolk County, NY: From 17.7% to 10.8%
• Indian River County, FL: From 11.9% to 7.9%
• Maui County, HI: From 8% to 4.2%
• Caddo Parish, LA: From 10.3% to 7.2%

These counties reflect a broader trend of declining yields due to rising property prices outpacing rental income increases.

Areas With the Biggest Increases in Rental Yields

While many areas are seeing rental yields tighten, some markets have experienced slight improvements.

Counties with the biggest increases in rental yields include:

• Alameda County, CA: From 3.8% to 4.5%
• Cook County, IL: From 9.2% to 9.8%
• Hillsborough County, FL: From 6.8% to 7.2%
• Sacramento County, CA: From 5.7% to 6.1%
• Fresno County, CA: From 6.5% to 6.9%

These areas have benefited from a combination of steady rent growth and relatively moderate property price increases, providing more favorable conditions for rental property investors.

The Role of Wages in Rental Yield

Another important factor affecting single-family rental yields is wage growth. In 63% of counties, typical wages grew faster than three-bedroom rents from 2025 to 2026, which may help support strong rental demand in these areas.

Additionally, wages grew faster than home prices in 66.8% of counties, which could help improve affordability and encourage demand for rental properties, even as homeownership becomes more difficult for some buyers due to high property costs.

Counties with the Best Growth Potential

ATTOM also highlighted 18 counties with projected rental yields above 10% in 2026, where rental income growth outpaces both home price increases and wage growth.

These “SFR Growth” counties represent some of the best markets for investors seeking strong returns on rental properties:

• Suffolk County, NY
• Onondaga County, NY
• Lucas County, OH
• Mobile County, AL
• Collier County, FL

Conclusion: A Mixed Rental Market in 2026

In 2026, the single-family rental market continues to show mixed signals. While some regions still offer attractive rental yields, the overall trend of tightening rental returns across the U.S. reflects the challenge posed by record-high property prices.

Investors looking for strong returns will need to be selective in their property choices and focus on markets where rental growth and affordability trends continue to align. Midwestern counties, in particular, offer promising returns, while coastal and high-demand urban areas have seen a reduction in rental yield potential due to rising home prices.

As rental yields tighten, investors must consider wage growth, rent-to-price ratios, and local market conditions to maximize their returns in the evolving housing landscape of 2026. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.