When it comes to the real estate market and renting out properties therein, the most important aspect for a potential landlord is the rental yield potential. With yield being the measure of the percentage of income return you get from an asset, rental yield is the amount of rent a property earns over a year. Therefore, as the annual rental return from a property, the higher the yield the higher the return. Calculating which areas are good and bad for rental yield in the United States can be a rather baffling task, and so to save you the bother we’ll give you a rundown.
Those renting properties in North Dakota may very well find themselves fortunate as the state boasts the highest rental yield percentage in the United States, at 16.7 percent. The medium property price in North Dakota is a comfortable $29,800 while it’ll cost you on average, $414 a week to rent such a property there, resulting in a price to rent ratio of 5.99.
UK investors looking to buy a house in the United States and real estate investors looking for out of state investments can thus look towards the Peace Garden State for great rental yield potential.
Oklahoma and West Virginia also boast high rental yield percentages at 12.3 percent and 11.9 percent respectively.
However, some of the big states also hover above the United States average, which rests at 7.2 percent. For example, the rental yield percentage in New York lies at 8.1 percent, and that of Florida is 8.5 percent.
California has justifiably developed a bit of a reputation for holding a very rigid and expensive housing market. This is reflected in their rental yield percentage laying some one percent under the nation’s average, at 6.1 percent.
And what about the state with the nation’s worst rental yield percentage? Colorado with a percentage of just 4.4 percent. With an average property price of $155,300, and an average rental price of $571 a week, Colorado is the state to stay well clear of if you’re a property investor.
Utah and Oregon aren’t far behind with rental yield percentages of 4.7 percent each.
For UK based Rental Yields, search for your postcode here.