Single-family rentals score big in some parts of Pa.

A few counties in Pennsylvania are giving landlords more bang for their buck in single-family home rentals, according to ATTOM Data Solutions’ Q1 2017 Single Family Rental Market report.

Monroe County offered one of the highest annual gross rental yields at 20.6 percent. Allegheny County also nabbed a high position on returns in a county with a population of at least 1 million at 10.6 percent, as did Philadelphia County at 10.1 percent.

“Single family rentals should continue to yield strong returns in many parts of the country going forward given the market undercurrents of low rent-ready housing inventory and low homeownership rates. Average fair market rents increased in 2017 in 86 percent of the markets we analyzed even while average wage growth outpaced rent growth in 67 percent of markets — a recipe for sustainable growth in the rental market,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

Delaware County was named one of the best markets for growth in single-family home rentals, averaging 14.1 percent return. Westmoreland County also saw some growth, with the annual average return hitting 14 percent.

The report analyzed 375 counties in the U.S., all of which had a population of at least 100,000. The average annual gross renal yield was 9 percent for the first quarter of 2017, down from 9.1 percent last quarter, according to the report.

For specific cities, in Pennsylvania, Chester, in Delaware County, has the best return, with the annual gross rental yield coming in at 54.6 percent. Meanwhile, New Hope, in Bucks County, only offers owners 2.7 percent return on their investment.

The price of single-family homes increased more than the average market rent in 57 percent of counties analyzed. Even with renters becoming buyers, single-family rental returns should continue to increase.