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Where to Invest in Single-Family Rentals in 2025: Top 10 Counties for Strong Yields and Wage Growth

With inflation cooling, interest rates stabilizing, and rental demand still outpacing supply in many markets, 2025 is shaping up to be a promising year for real estate investors—especially those focused on single-family rentals (SFRs).

But not all markets are created equal. According to the latest Q1 2025 Single-Family Rental Market Report by property data firm ATTOM, a handful of U.S. counties stand out for offering both strong rental yields and solid wage growth. In this article, we break down the top places to invest in SFRs this year—and what makes them worth a closer look.

Related: US Mortgage Rates Continue to Decline on May 28th 2025

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🏠 Why Single-Family Rentals Remain a Solid Investment

Before we dive into the data, let’s quickly recap why single-family rentals are so attractive in today’s market:

• ✅ Steady cash flow from monthly rent payments

• ✅ Appreciation potential as property values continue rising

• ✅ Tax advantages, including deductions for depreciation, interest, and repairs

• ✅ Tangible asset ownership, offering more control than REITs or stocks

That said, location is everything. Wage growth, housing affordability, and local economic trends can make or break an SFR investment.

Related: US Homebuyers are Using This Simple Trick to Save Thousands in Mortgage Interest

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The 2025 Rental Yield Landscape: What Investors Should Know

Across the 361 counties analyzed in ATTOM’s report, the average gross annual rental yield for three-bedroom homes is 7.45%, slightly down from 7.52% in 2024. This dip is largely due to home prices rising faster than rents in many markets.

• 📈 In 54% of counties analyzed, home prices outpaced rent growth

• 🏠 Median home prices rose in nearly two-thirds of counties with available data

• 🔻 Rental yields declined in 60% of all counties studied

Translation? Investors need to be more selective than ever. Markets where both rental income and local wages are rising stand to outperform.

Related: The Top 10 Most and Least Affordable Housing Markets in the US in 2025

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Methodology: How ATTOM Picked the Top SFR Markets

To pinpoint the most promising locations for single-family rental investments, ATTOM zeroed in on counties that met two key criteria:

1. Wage Growth: Average wages rose year-over-year, signaling local economic strength

2. Rental Yield: Projected gross rental yield for a 3-bedroom property in 2025 exceeded 10%

Out of the 361 counties evaluated, only 28 made the cut, and these are the top 10 performers based on a combination of growth metrics and rental return potential.

Related: Growing Housing Affordability Gap Creating Golden Opportunity for Investors

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🔟 Best U.S. Counties for Single-Family Rental Investment in 2025

1. Suffolk County, New York

Wage Growth: 7%
2025 Rental Yield: 18%
Why it’s hot: Located just outside New York City, Suffolk offers urban proximity with suburban affordability—great for long-term renters seeking value.

2. Atlantic County, New Jersey

Wage Growth: 2%
Rental Yield: 18%
Investor note: Affordable coastal real estate paired with a steady tourism economy make this county worth watching—especially outside Atlantic City’s core.

3. Jefferson County, Alabama

Wage Growth: 9%
Rental Yield: 16%
Why it’s solid: Home to Birmingham, the county boasts a diversified economy and strong population trends. That wage growth figure is especially encouraging.

4. Mobile County, Alabama

Wage Growth: 5%
Rental Yield: 19%
Market insight: With major employers in aerospace and shipping, Mobile offers affordability and rental demand—plus a low cost of living for investors.

5. Ector County, Texas

Wage Growth: 5%
Rental Yield: 15%
Outlook: Oil-driven economies like Odessa’s can be cyclical, but for those comfortable with that risk, the returns can be lucrative.

6. Indian River County, Florida

Wage Growth: 2%
Rental Yield: 12%
Reality check: While the rental yield is solid, slower wage growth may temper long-term rent appreciation. Ideal for income-focused investors.

7. St. Louis City, Missouri

Wage Growth: 7%
Rental Yield: 12%
Why it works: A cultural hub with low housing costs and economic resilience. Investors looking for stability with upside should take note.

8. Litchfield County, Connecticut

Wage Growth: Not available
Rental Yield: 17%
Highlight: Quiet and rural but close to NYC and Hartford, Litchfield offers an appealing mix of scenic living and investor-friendly pricing.

9. Charlotte County, Florida

Wage Growth: 4%
Rental Yield: 16%
Bonus: Strong appeal to retirees and snowbirds keeps demand up. Lower volatility than other Florida counties adds a layer of stability.

10. Saint Clair County, Illinois

Wage Growth: 8%
Rental Yield: 16%
Investor note: Its proximity to St. Louis gives it a unique metro-suburban balance. Affordable housing and rising incomes make it a compelling pick.

Related: Local Market Expertise is Essential for Overseas Property Investors

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Buyer Beware: Due Diligence Still Matters

Just because a county shows promise on paper doesn’t mean it’s a guaranteed win. Smart investors should:

• 🔍 Research local rents, vacancy rates, and property values

• 🧰 Inspect property conditions and calculate potential repair costs

• 📜 Understand local laws, especially landlord-tenant regulations

• 💸 Evaluate financing terms, including DSCR loan availability for non-resident investors

A county’s average doesn’t mean every deal there is a good one. Property-level due diligence is key.

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Investor Insights: My Personal Take

From my own experience of buying 120+ rental properties in the United States as a foreigner, I believe the real winners in 2025 will be investors who balance yield with long-term fundamentals. That means:

• Prioritizing neighbourhoods access to stable jobs markets

• Understanding local-market affordability

• Looking for population inflows and economic diversification

• Choosing markets with investor-friendly legislation and scalable opportunities

Also, physically visiting your target market—or at least having a trusted boots-on-the-ground team—can help avoid surprises.

I take a data-driven approach to analyze the neighbourhood, then combine that with ‘eyes-on’ walkthroughs of the street and property in collaboration with my trusted local partners.

Don’t forget to get a full spectrum of inspections – general, roof, sewer scope – before you close. And ALWAYS get an independent apprasial.

Related: Successful Foreign Investors Use Local Market Data to Identify Opportunities

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Final Thoughts

Single-family rentals remain a powerful vehicle for building long-term wealth and generating passive income. But in 2025’s shifting market, location selection is more critical than ever.

There are regional markets that will continue to see price appreciations due to supply constraints and good affordability. At the same time, other markets are already seeing prices fall as buyers simply just can’t afford to close at current pricing.

The 10 counties highlighted by ATTOM stand out for a reason: they offer a reasonable mix of affordability, rental returns, and wage growth. Whether you’re a first-time investor or scaling a portfolio, these markets are well worth a deeper look.

As always, do your own due diligence—and invest wisely.

FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate