Where to Find the Best Rental Returns in 2025: Midwest, South Lead the Way
David Garner
David Garner🏘️ Where to Find the Best Rental Returns in 2025: Midwest, South Lead the Way
ATTOM’s latest Q1 2025 Single-Family Rental Market Report reveals some key insights for property investors.
By analysing 361 U.S. counties with robust rental and home price data, the report spotlights where opportunities and risks are growing in the single-family rental (SFR) market.
I’ve purchased over 120+ rental properties in the US as a foreigner, and for those of us looking for profitable property investments in the USA, I can tell you this sort of data is invaluable.
🔍 National Snapshot: SFR Returns Slip Slightly
- Average Gross Rental Yield (3-bed homes): 7.45% (down from 7.52% in 2024)
- Reason for Decline: In 54% of counties, home prices outpaced rent growth, reducing yields
- Market Trend: 57% of counties saw rental returns decrease year-over-year
“Unless home prices stabilize or more properties become available, this trend is likely to persist in the near future.” — Rob Barber, CEO at ATTOM
📊 Top 2025 Markets for Gross Rental Yield
| Rank | County (Metro Area) | Rental Yield (%) |
|---|---|---|
| 1 | Suffolk, NY (NYC area) | 18.0% |
| 2 | Atlantic, NJ (Atlantic City) | 16.8% |
| 3 | Jefferson, AL (Birmingham) | 13.6% |
| 4 | Mobile, AL | 12.9% |
| 5 | Ector, TX (Odessa) | 12.5% |
🏙️ Top Metro Areas with High Yields (Pop. 1M+)
| County (Metro) | Yield (%) |
| Wayne, MI (Detroit) | 10.9% |
| Cuyahoga, OH (Cleveland) | 10.1% |
| Allegheny, PA (Pittsburgh) | 9.8% |
| Cook, IL (Chicago) | 9.2% |
🔻 Counties with the Largest Rental Yield Drops (YoY)
| County (Metro Area) | 2024 | 2025 |
| Litchfield, CT (Hartford) | 17.1% | 11.7% |
| Champaign, IL | 12.5% | 9.3% |
| Monroe, NY (Rochester) | 12.6% | 9.8% |
| Santa Barbara, CA | 10.0% | 7.4% |
| Mercer, NJ (Trenton) | 11.8% | 9.8% |
🚫 Lowest 2025 SFR Yields
| County (Metro Area) | Yield (%) |
| Santa Clara, CA (San Jose) | 2.9% |
| San Mateo, CA (San Francisco) | 3.3% |
| Williamson, TN (Nashville) | 3.4% |
| Walton, FL | 3.7% |
| Alameda, CA (San Francisco) | 3.8% |
🌟 SFR Growth Markets in 2025 (Yields >10% & Rising Wages)
| County (Metro Area) |
| Wayne, MI (Detroit) |
| Suffolk, NY (NYC area) |
| Cuyahoga, OH (Cleveland) |
| Shelby, TN (Memphis) |
| Hidalgo, TX (McAllen) |
These growth markets offer a compelling combination of high rental yields and wage growth, making them prime opportunities for investors seeking long-term potential.
Personally, I’m buying more investment properties in Cleveland and Kansas City this year. The market fundamentals look great, houses are still affordable for local market buyers, and rental yields are good enough to ensure good quality properties cashflow pretty well!
🧭 Investor Takeaway
The 2025 landscape is increasingly complex. While rental returns are tightening in many areas, select Midwest and Southern counties continue to deliver strong cash flow. Meanwhile, many West Coast and high-cost metro markets are seeing sharply diminished returns.
🔑 Pro Tip: Investors should look beyond headlines and national averages, drilling down into local trends. Markets like Cleveland, Detroit, and Mobile remain compelling for cash flow, while others may require more appreciation-based strategies.
Stay tuned for more market breakdowns and real estate investment insights at Aluguel de fluxo de caixa.
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“Having personally invested in over 120 US rental properties from overseas, I know the true value of getting the right advice and support.
David Garner – Cashflow Rentals
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