A rental advertised at a 14.5% gross yield deserves a closer look. Before you make an offer, ask how much rent you can collect, what the property will cost to operate, and what you will owe each month.
You can have an impressive rent-to-price ratio and very little money left after expenses and financing. Let's work through the 2026 county figures, then put a hypothetical purchase through a full cash-flow calculation.
The ten markets in the ATTOM list
ATTOM's March 6, 2026 article lists these ten single-family rental growth counties, using a screen that combines rising average wages with projected gross rental yields above 10%. That qualification matters: the list is a filtered growth-market selection, rather than an unrestricted ranking of every U.S. county.
| Market | Projected 2026 gross rental yield |
|---|---|
| Saint Clair County, Illinois | 14.5% |
| Mobile County, Alabama | 13.6% |
| Peoria County, Illinois | 12.5% |
| Saint Louis County, Minnesota | 11.6% |
| Trumbull County, Ohio | 11.5% |
| Florence County, South Carolina | 11.4% |
| Saint Louis City, Missouri | 11.3% |
| Suffolk County, New York | 10.8% |
| Collier County, Florida | 10.6% |
| Onondaga County, New York | 10.6% |
Source: ATTOM's 2026 rental-growth county list. Figures checked September 15, 2026. Saint Louis City is separate from Saint Louis County, Missouri; the Minnesota entry is also a different market.
Understand what ATTOM measured
ATTOM's March 5 report covers 416 counties. It combines recorded single-family home sales prices with licensed three-bedroom rental data and second-quarter 2025 wage data. Its year-over-year yield comparison covers a smaller group: 341 counties with data for both years. Projected yields fell in 187 of those counties, or 54.8%.
These are county-level projections. They do not establish the rent, expenses or financing available for a particular house. The public release does not supply enough underlying property-level observations to reproduce the county estimates independently. We verified the published figures and methodology, not ATTOM's underlying dataset. Read ATTOM's report and methodology.
Use the list to choose where to investigate. Then replace the county figures with evidence for the address you want to buy. A three-bedroom house with deferred maintenance may need a different rent estimate and repair budget from a renovated house down the street.
Calculate gross rental yield before you add financing
For a property-level screening calculation:
Gross rental yield = annual scheduled rent ÷ purchase price × 100.
Take a hypothetical $200,000 purchase with $29,000 in scheduled annual rent, about $2,417 a month. Its gross yield is $29,000 ÷ $200,000 = 14.5%.
That calculation assumes the full scheduled rent. It has no allowance for vacancy, unpaid rent, taxes, insurance, management, repairs or debt payments. It also excludes your purchase closing costs and initial renovation spending from the denominator.
Suppose you spend another $6,000 to close and $12,000 to make the property rent-ready. Your acquisition and initial work total $218,000. The same $29,000 rent divided by that amount is about 13.3%. Label it as gross rent relative to acquisition and initial work costs so you do not confuse it with the purchase-price measure.
Neither percentage tells you what you can take home. You need an operating budget for that.
Follow a 14.5% gross yield through the expenses
Everything in this example is hypothetical. These are teaching assumptions, not ATTOM county averages, local quotes, recommended reserve levels or a funding offer. We assume a stabilized full year after the initial work, one rental house, no HOA, and a tenant who pays the utilities. Leasing and routine turnover costs are included in the repair allowance; replace those assumptions with actual quotes.
| Annual income or cost | Amount |
|---|---|
| Scheduled rent | $29,000 |
| Vacancy and collection loss: 5% of scheduled rent | −$1,450 |
| Expected collected rent | $27,550 |
| Management: 8% of collected rent | −$2,204 |
| Property taxes | −$3,600 |
| Property insurance | −$1,800 |
| Routine repairs, leasing and turnover allowance | −$2,400 |
| Other operating costs | −$600 |
| Net operating income, before financing and capital reserve | $16,946 |
| Annual reserve contribution for major replacements | −$1,800 |
| Cash available before debt payments | $15,146 |
Net operating income, or NOI, is the income left after the operating expenses used in this calculation, before financing and income taxes. We show the major-replacement reserve separately because it is money retained for future work, not a claim that you incurred that expense this year. Lender and appraisal treatments can differ; reconcile their worksheets with yours.
The NOI divided by the $200,000 purchase price is 8.47%, a purchase-price cap-rate calculation under these assumptions. After the replacement reserve, the cash available before debt is about 7.57% of that price.
Keep those labels attached to the numbers. A gross yield, a cap rate and cash available after a reserve answer different questions.
Add the loan payment and the cash you contributed
Assume a $160,000 loan, an 8% fixed interest rate and full amortization over 30 years, with no balloon. The calculated monthly principal-and-interest payment is about $1,174, or $14,088 a year using rounded payments. This is an illustrative loan, not a statement of current rates or eligibility.
Subtract that payment from the $15,146 available before debt:
$15,146 − $14,088 = $1,058 a year, or about $88 a month.
Taxes and insurance are already in our operating table. If your lender collects them through escrow, do not subtract them again inside the debt-payment line. The CFPB explains the distinction between principal and interest and the total mortgage payment.
Now account for the cash you had to bring:
| Initial cash commitment | Amount |
|---|---|
| Down payment | $40,000 |
| Closing costs, including assumed loan charges | $6,000 |
| Initial rent-ready work | $12,000 |
| Opening cash reserve | $6,000 |
| Total cash committed | $64,000 |
The $6,000 opening reserve remains cash you control, but we include it in committed capital. It is separate from the $1,800 annual contribution to major replacements. Under our stated convention, the annual cash available for distribution divided by committed cash is $1,058 ÷ $64,000 = about 1.65%.
This is a stabilized, pre-tax cash-on-cash illustration after the planned annual reserve contribution. The actual acquisition year can look worse if renovations delay rent. Add that period's payments, utilities and other holding costs to your cash plan.
We have excluded appreciation, selling costs, income taxes and the equity gained through principal repayment from the cash-distribution result. Taxable rental income is a separate calculation: the IRS explains rental expenses and depreciation in Publication 527. A tax deduction does not give you cash to pay this month's contractor.
Test the assumptions that could change your decision
A budget that leaves $88 a month deserves close attention. You do not need a complicated forecast to see where it is vulnerable. Change one input and keep the others fixed.
| Scenario | Annual cash after debt and planned reserve |
|---|---|
| Base example | $1,058 |
| Insurance costs $1,200 more per year | −$142 |
| Scheduled rent is 10% lower | About −$1,477 |
In the lower-rent case, scheduled rent falls to $26,100. The 5% vacancy allowance becomes $1,305, and management falls to $1,983.60 because we charge it on collected rent. All fixed operating costs, the replacement reserve and debt payments stay unchanged. The calculation is $24,795 collected rent − $1,983.60 management − $8,400 other operating costs − $1,800 reserve − $14,088 debt = −$1,476.60.
A major repair also creates a timing problem. Even when you budget for replacements across several years, a large bill can arrive before you have saved enough. Inspect the roof, HVAC and other expensive components, then match your opening reserve to the actual condition and your access to cash.
Changing loan terms may improve the monthly result, but compare the whole obligation: cash due at closing, fees, amortization, rate changes, maturity and any balloon payment. A smaller monthly payment alone does not show whether you can repay the remaining balance when it is due.
Build the property file before choosing the market winner
Start with an address and collect the evidence that can change your offer:
- Rent: compare nearby properties with similar bedrooms, condition, parking and amenities. Separate advertised rent from a signed lease and actual collections. For an occupied property, request the lease, ledger, concessions and deposit records.
- Taxes: check the parcel record and ask the local assessor how a sale, reassessment or change in exemptions could affect the bill. Do not assume the seller's payment will be yours.
- Insurance: request an address-specific landlord quote with the intended occupancy, coverage limits and deductibles. Confirm what requires separate coverage.
- Repairs and management: get an inspection, a priced scope and a management proposal that identifies leasing, renewal, inspection and maintenance charges.
- Local operation: verify rental registration, inspections, zoning and applicable association restrictions with the relevant authorities and documents. Ask local managers for evidence of leasing times and tenant demand.
- Financing: obtain proposed terms and a complete payment breakdown. List required reserves, closing charges and any work needed before the lender can fund.
For each important figure, write down who supplied it and when. Mark estimates as estimates. If you cannot support the rent yet, run a range rather than treating the most optimistic listing as your base case.
Bring the property and the numbers to the funding conversation
You do not need to know the name of the loan product before you contact us. Send the property location, purchase price, expected rent, expense estimates, repair budget, available cash and target closing date. Include any existing loan or seller terms and explain whether you intend to hold, improve or refinance the property.
Our rental and DSCR funding page explains where that conversation starts. Your operating budget should still include costs beyond whatever calculation a particular lender uses for approval.
If you are renovating before renting, map the payments through the work and lease-up period. The cash-to-close guide illustrates how reimbursements and holding costs can increase the cash you need; adapt its timing approach to your rental plan.
Tell us about your deal. We can discuss the funding need with the property's income, costs and repayment plan in view. Funding availability and terms depend on review.