HouseCanary's Q1 Rental Index - Real Estate Investing Today

The latest HouseCanary quarterly Canary Rental Index (CRI), reports that the nationwide effective gross yield (EGY) is remaining steady at 7.7% – which HouseCanary says effectively means that investors can expect a return on their investment of around 7.7%. The CRI measures Effective Gross Yield, defined as the current fair market annualized rent minus estimated property tax, divided by the current fair market home value for all non-owner occupied single-family properties in the U.S. They examine how rental yield varies from state to state by pinpointing the effective gross yield (EGY) that investors can expect on average in any given state. The EGY calculation includes rental expenses (like the price of the home and state and local tax levies), then determines what kind of return on investment a rental investor can expect given the local fair-market rental value of homes.

“Where there’s smoke, there’s fire. So where home prices are rising, there must be great opportunities for rental investors to make money. Right? Not necessarily…”