25 Best Counties To Buy A Single-Family Rental Investment Property In 2023

Shifts in the housing market mean purchasing a single-family rental property in 2023 will likely provide a good return on the investment.

After a run-up in home prices during the COVID-19 pandemic, the real estate market is starting to normalize in some places. Rents are rising faster than home purchase prices in most of the country as renters look to get more space and may have been priced out of the competitive home buying market as mortgage interest rates increased.

Rocket Homes ^SMexamined data from ATTOM, a property data provider, to see which counties would offer the greatest returns on investment on single-family rental homes in 2023. U.S. counties with a population of 100,000 or more were considered.

To calculate the annual gross rental yield, the projected annualized gross rent income of a three-bedroom property was divided by the home purchase price. A higher percentage means the property owner will recover a larger share of the purchase price within the first year.

This year, prospective landlords are projected to get an average 7.5% annual gross rental yield in the 212 counties analyzed. That's an increase from 6.7% in 2022, the first time since 2019 that the average annual rental yield increased. The single-family rental yield increased in nine out of every 10 counties analyzed compared to the year before. Counties are ranked by projected annual rental yield for 2023.

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#25. East Baton Rouge, Louisiana

- Part of the Baton Rouge, Louisiana, metro area
- Median home price: $212,725
- Median rent for a three-bedroom home: $1,700 a month
- 2023 Annual gross rental yield: 9.6%

East Baton Rouge Parish is home to Louisiana's capital, Baton Rouge, and sits more than 90 miles northwest of New Orleans. About 40% of the county's 450,544 residents are renters, compared to 35% of the national population, according to the Census Bureau.

#24. Sarasota, Florida

- Part of the North Port, Florida, metro area
- Median home price: $435,037
- Median rent for a three-bedroom home: $3,500 a month
- 2023 Annual gross rental yield: 9.7%

Sarasota County is located between Tampa and Fort Myers on Florida's Gulf Coast. Among the county's 462,286 residents, 24.1% are renters (compared to 35% nationally). More than 37% of the population is made up of senior citizens who may be looking to rent rather than own a home in retirement.

#23. Jefferson, Alabama

- Part of the Birmingham, Alabama, metro area
- Median home price: $136,000
- Median rent for a three-bedroom home: $1,095 a month
- 2023 Annual gross rental yield: 9.7%

Jefferson County sits in central Alabama, and the county seat is Birmingham. Among the county's 665,409 residents, 36.1% are renters (compared to 35% nationally). Rocket Homes reported 2,813 houses for sale in Jefferson County in May.

#22. Will, Illinois

- Part of the Chicago metro area
- Median home price: $260,000
- Median rent for a three-bedroom home: $2,100 a month
- 2023 Annual gross rental yield: 9.7%

Will County is located south of Chicago, along the Indiana border. Among the county's 696,757 residents, 18.3% are renters (compared to 35% nationally). Will County is home to Governors State University, Lewis University and the University of St. Francis, so college students account for some of the renters.

#21. Washtenaw, Michigan

- Part of the Ann Arbor, Michigan, metro area
- Median home price: $309,000
- Median rent for a three-bedroom home: $2,500 a month
- 2023 Annual gross rental yield: 9.7%

Washtenaw County is in southeast Michigan, home to Ann Arbor, the University of Michigan, and Eastern Michigan University. Among the county's 366,376 residents, 38.6% are renters (compared to 35% nationally). Student housing accounts for some of the area's renters.

#20. Richmond, Georgia

- Part of the Augusta, Georgia, metro area
- Median home price: $154,450
- Median rent for a three-bedroom home: $1,250 a month
- 2023 Annual gross rental yield: 9.7%

Richmond County sits in eastern Georgia, along the South Carolina border, and is home to the city of Augusta. Among the county's 206,640 residents, 48.6% are renters (compared to 35% nationally).

#19. Clayton, Georgia

- Part of the Atlanta metro area
- Median home price: $221,000
- Median rent for a three-bedroom home: $1,800 a month
- 2023 Annual gross rental yield: 9.8%

Clayton County is located south of Atlanta and is part of the city's metro area. Among the county's 296,564 residents, 48% are renters (compared to 35% nationally). Commuters who work in Atlanta but cannot afford the higher housing prices there may rent in Clayton County.

#18. Burlington, New Jersey

- Part of the Philadelphia metro area
- Median home price: $303,000
- Median rent for a three-bedroom home: $2,500 a month
- 2023 Annual gross rental yield: 9.9%

Burlington County is in central New Jersey and borders Philadelphia. Among the county's 466,103 residents, 24.4% are renters (compared to 35% nationally). Rocket Homes reported 1,888 houses for sale in Burlington County in May.

#17. Jefferson, Texas

- Part of the Beaumont, Texas, metro area
- Median home price: $174,396
- Median rent for a three-bedroom home: $1,450 a month
- 2023 Annual gross rental yield: 10%

Jefferson County is located in southeast Texas along the Gulf Coast and is home to Beaumont. Among the county's 250,830 residents, 38.3% are renters (compared to 35% nationally).

#16. Cuyahoga, Ohio

- Part of the Cleveland metro area
- Median home price: $154,442
- Median rent for a three-bedroom home: $1,300 a month
- 2023 Annual gross rental yield: 10.1%

Cuyahoga County sits in northeast Ohio along the shore of Lake Erie and includes the city of Cleveland. Among the urban county's 1.24 million residents, 41.8% are renters (compared to 35% nationally). Rocket Homes reported 4,904 houses for sale in Cuyahoga County in May.

#15. Polk, Iowa

- Part of the Des Moines, Iowa, metro area
- Median home price: $210,000
- Median rent for a three-bedroom home: $1,775 a month
- 2023 Annual gross rental yield: 10.1%

Polk County in central Iowa is the most populous county in the state and home to the state capital, Des Moines. Among the county's 501,089 residents, 33.1% are renters (compared to 35% nationally). Rocket Homes reported 2,713 houses for sale in Polk County in May.

#14. Jefferson, Louisiana

- Part of the New Orleans metro area
- Median home price: $230,000
- Median rent for a three-bedroom home: $2,000 a month
- 2023 Annual gross rental yield: 10.4%

Jefferson Parish is in southeast Louisiana and borders New Orleans. Among the county's 425,884 residents, 37.5% are renters (compared to 35% nationally). Housing prices are lower in Jefferson Parish than nearby New Orleans, so renters may live in the county and commute to the city.

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#13. Gloucester, New Jersey

- Part of the Philadelphia metro area
- Median home price: $275,000
- Median rent for a three-bedroom home: $2,400 a month
- 2023 Annual gross rental yield: 10.5%

Gloucester County is located in central New Jersey and borders Philadelphia, like Burlington County, New Jersey (#18 on this list). Among the county's 306,601 residents, 19.6% are renters (compared to 35% nationally). Rocket Homes reported 1,059 houses for sale in Gloucester County in May.

#12. Montgomery, Alabama

- Part of the Montgomery, Alabama, metro area
- Median home price: $131,000
- Median rent for a three-bedroom home: $1,150 a month
- 2023 Annual gross rental yield: 10.5%

Montgomery County sits in south-central Alabama and is home to the state capital, Montgomery. Among the county's 226,361 residents, 42.8% are renters (compared to 35% nationally).

#11. Camden, New Jersey

- Part of the Philadelphia metro area
- Median home price: $266,000
- Median rent for a three-bedroom home: $2,350 a month
- 2023 Annual gross rental yield: 10.6%

Camden County is in central New Jersey, between Burlington County (#18 on this list) and Gloucester County (#13 on this list). It also borders Philadelphia. Among the county's 524,907 residents, 34.8% are renters (compared to 35% nationally). Rocket Homes reported 1,822 houses for sale in Camden County in May.

#10. Orleans, Louisiana

- Part of the New Orleans metro area
- Median home price: $225,000
- Median rent for a three-bedroom home: $2,000 a month
- 2023 Annual gross rental yield: 10.7%

Orleans Parish includes New Orleans, and it sits on the shore of the Mississippi River near the Gulf of Mexico. Among the county's 369,749 residents, 52% are renters (compared to 35% nationally). Orleans Parish is the only majority-renter county on this list.

#9. New Haven, Connecticut

- Part of the New Haven, Connecticut, metro area
- Median home price: $297,250
- Median rent for a three-bedroom home: $2,700 a month
- 2023 Annual gross rental yield: 10.9%

New Haven County is located in southern Connecticut on the Atlantic coast. It's home to two of the state's larger cities: New Haven and Waterbury. Among the county's 864,835 residents, 38.4% are renters (compared to 35% nationally). Rocket Homes reported 2,639 houses for sale in New Haven County in May.

#8. Atlantic, New Jersey

- Part of the Atlantic City, New Jersey, metro area
- Median home price: $293,250
- Median rent for a three-bedroom home: $2,700 a month
- 2023 Annual gross rental yield: 11.0%

Atlantic County sits on the Jersey Shore and is home to Atlantic City. Among the county's 275,638 residents, 33.1% are renters (compared to 35% nationally). Rocket Homes reported only 450 houses for sale in Atlantic County in May.

#7. Shelby, Tennessee

- Part of the Memphis, Tennessee, metro area
- Median home price: $150,500
- Median rent for a three-bedroom home: $1,395 a month
- 2023 Annual gross rental yield: 11.1%

Shelby County is in western Tennessee, bordering Arkansas and Mississippi. Memphis is in Shelby County, the most populous county in the state. Among the county's 916,371 residents, 44.4% are renters (compared to 35% nationally). Fourteen higher education institutions and satellite campuses are in Shelby County, so rental housing may cater to students.

#6. Cook, Illinois

- Part of the Chicago metro area
- Median home price: $265,000
- Median rent for a three-bedroom home: $2,550 a month
- 2023 Annual gross rental yield: 11.5%

Cook County is home to Chicago, the third most populous city in the U.S. Among the county's 5.1 million residents, 42.5% are renters (compared to 35% nationally). Rocket Homes reported 20,736 houses for sale in Cook County in May.

#5. Charlotte, Florida

- Part of the Punta Gorda, Florida, metro area
- Median home price: $340,500
- Median rent for a three-bedroom home: $3,400 a month
- 2023 Annual gross rental yield: 12.0%

Charlotte County is located north of Fort Myers on Florida's Gulf Coast. Among the county's 202,661 residents, just 17.9% are renters (compared to 35% nationally). More than two in five residents are 65 and older, so rentals may cater to retirees.

#4. Mercer, New Jersey

- Part of the Trenton, New Jersey, metro area
- Median home price: $265,000
- Median rent for a three-bedroom home: $2,800 a month
- 2023 Annual gross rental yield: 12.7%

Mercer County is home to New Jersey's capital, Trenton, and Princeton University. Among the county's 380,668 residents, 37% are renters (compared to 35% nationally). The county is about 50 miles from Philadelphia and New York City, so people may rent in Mercer County and commute to one of the larger cities for work.

#3. Wayne, Michigan

- Part of the Detroit metro area
- Median home price: $125,000
- Median rent for a three-bedroom home: $1,350 a month
- 2023 Annual gross rental yield: 13.0%

Wayne County is home to Detroit in Southeast Michigan. Among the county's 1.8 million residents, 36.6% are renters (compared to 35% nationally). Detroit's foreclosure crisis has driven up the number of renters in the city and fueled relatively low home sales prices.

#2. Collier, Florida

- Part of the Naples, Florida, metro area
- Median home price: $735,000
- Median rent for a three-bedroom home: $9,000 a month
- 2023 Annual gross rental yield: 14.7%

Collier County sits south of Fort Myers and Cape Coral on Florida's Gulf Coast. Among the county's 397,994 residents, 26.3% are renters (compared to 35% nationally). Rentals may cater to retirees, as one-third of the county's population is 65 and older.

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#1. Indian River, Florida

- Part of the Sebastian, Florida, metro area
- Median home price: $360,000
- Median rent for a three-bedroom home: $4,500 a month
- 2023 Annual gross rental yield: 15%

The highest gross rental yield is in Indian River County on Florida's Atlantic Coast. Among the county's 167,352 residents, 20.4% are renters (compared to 35% nationally). More than 34% of residents are 65 and older, so renters may include retirees not interested in purchasing a house.

Data reporting by Elena Cox. Story editing by Jeff Inglis. Copy editing by Paris Close.