2025 YTD SFR Rental Acquisitions Overview
Investor purchase activity, gross yields by geography, and property characteristics year to date in 2025
This data-driven analysis examines single-family residential rental purchases in 2025 for which we have rental yield data. Our comprehensive report includes:
A ranking of cities with the most residential rental purchases made, along with ranges of gross yields offered in those cities
A breakdown of the differences in purchasing behavior between institutional investors and non-institutional investors
Analysis of how property characteristics impact yields
Over 50,000 single-family rentals purchased in 2025
Executive Summary
Analysis of 50,000+ rental properties purchased in 2025 reveals a median gross yield below 10%
Core SFR markets dominated the top 10 for acquisitions—Phoenix, Dallas, and Atlanta—alongside Los Angeles and the Inland Empire (San Bernardino/Riverside)
While institutional investors are primarily on the sidelines, both individuals and smaller operators are very active
Investor strategies are highly varied - from new construction rentals in Texas to 4% cap rate deals in the Inland Empire
Data Overview
At SFR Analytics, we leverage nationwide deed, assessor, and rental listing data to track the single-family rental market. To generate this analysis, we have:
Collected rental portal data to track listing history
Matched those properties with our deed data to see purchase history and more information about the buyers
This analysis covers properties sold in 2025 that were subsequently listed for rent (note: our coverage excludes some rentals, particularly those not listed on public online portals.)
Analysis & Results
We analyzed 50,000+ rental properties purchased in 2025 to assess investor yields across regions.
Nationwide Gross Yields
Nationwide, the median gross yield on single-family rentals is ~9%, with only 35% having over 10%. This represents a 1-point decline from 2024's median of ~10%.
Across states, the relationship between purchase price and gross yields holds despite meaningful differences in purchase price. States like Ohio and Georgia have a much higher concentration of 10%+ gross yield properties compared to states like California.
Gross Yield by City
Lower-priced Rust Belt and Southern markets continue offering the highest yields, with Cleveland, Saint Louis, Detroit, Toledo, and Birmingham leading the charge.
Phoenix, Miami, and Vegas continue to be lower yield markets attracting a lot of investor activity.
Most Active MSAs by Purchase Count
Houston, Dallas, and Atlanta led all metros in rental property acquisitions during 2025.
SFR Funds vs Small Investors
Institutional acquisitions remain muted while small investors stay highly active. Institutional investors typically follow strict acquisition criteria, while individual investors employ more flexible strategies.
Summary
Small-scale investors with flexible acquisition criteria now dominate the single-family rental market.
Gross yields have declined slightly but remain relatively stable.
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