{"id":184927,"date":"2025-09-26T17:26:10","date_gmt":"2025-09-26T23:26:10","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=184927"},"modified":"2025-09-26T17:26:12","modified_gmt":"2025-09-26T23:26:12","slug":"four-key-metrics-from-single-family-rent-data-that-tell-you-everything-you-need-to-know-about-a-market","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/four-key-metrics-from-single-family-rent-data-that-tell-you-everything-you-need-to-know-about-a-market","title":{"rendered":"Four Single-Family Home Metrics That Tell You What You Need to Know About a Market"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">Real estate investing can be both exciting and complex. <\/span><span data-preserver-spaces=\"true\">With multiple factors influencing returns\u2014rents, wages, and home prices <\/span><span data-preserver-spaces=\"true\">among them<\/span><span data-preserver-spaces=\"true\">\u2014knowing where to invest, what to charge, and how to track changes over time can make a <\/span><span data-preserver-spaces=\"true\">meaningful<\/span><span data-preserver-spaces=\"true\"> difference.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">That\u2019s where single-family rental (SFR) data comes in. This article breaks down what these reports show, why each metric matters, and how you might use the information to anticipate where trends may <\/span><span data-preserver-spaces=\"true\">be headed<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">1. <span data-preserver-spaces=\"true\">Gross Rental Yield: A Key First Filter\u00a0<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Gross rental yield offers a quick way to compare income potential between markets. For example, if one county shows an 8% yield and another only 5%, that may influence where you spend time researching.&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Formula:\u00a0<\/span><em><span data-preserver-spaces=\"true\">Gross Rental Yield = (Annual Rent \u00f7 Property Purchase Price) \u00d7 100 \u00a0<\/span><\/em><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Example: Imagine two counties with similar home prices. One has rising rents and strong yields, while the other shows stagnant rents. An investor may decide that the first market <\/span><span data-preserver-spaces=\"true\">deserves deeper<\/span><span data-preserver-spaces=\"true\"> due diligence.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Actionable steps investors could take&nbsp;<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Screen multiple geographies by gross rental yield to narrow down a list of potential markets.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Use yield trends to prioritize where to perform property-level analysis.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Explore gross rental yield in your market with the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.trustetc.com\/real-estate-solutions\/real-estate-reports\/?utm_source=bigger_pockets&amp;utm_medium=blog&amp;utm_campaign=awareness_education&amp;utm_term=sfr_reports_blog&amp;utm_content=sfr_reports_cta\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Equity Trust SFR Reports<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2. <span data-preserver-spaces=\"true\">Tracking Three-Bedroom Rents and Year-Over-Year Changes\u00a0<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Median rent values for three-bedroom homes provide insight into affordability and demand. Year-over-year (YoY) changes highlight momentum.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Why this data matters:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Rising rents may point to strong tenant demand.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Declining rents may suggest oversupply or affordability challenges.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\"><em>Example:<\/em> A city where rents increased 6% in the last year, while neighboring counties stayed flat, may indicate stronger tenant demand there.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Actionable steps investors could take<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">If rents are rising steadily, an investor might explore whether the market has sustainable drivers (such as job growth, population inflows).\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If <\/span><span data-preserver-spaces=\"true\">rents are falling, investors cou<\/span><span data-preserver-spaces=\"true\">ld evaluate wh<\/span><span data-preserver-spaces=\"true\">ether to wait, negotiate more aggressively on purchase price, or focus on other markets.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">3. <span data-preserver-spaces=\"true\">Wages: The Tenant Affordability Factor\u00a0<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">In its single-family rental reports, ATTOM Data Solutions integrates average weekly wage data from the Bureau of Labor Statistics (BLS).&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tenant wages determine the ability to afford rent. If wages don\u2019t keep pace with rent increases, affordability pressure may lead to higher turnover or vacancy.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Actionable steps investors could take<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">In areas where wages are rising faster than rents, tenants may <\/span><span data-preserver-spaces=\"true\">be better positioned<\/span><span data-preserver-spaces=\"true\"> to handle modest rent increases.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If rents are rising faster than wages, investors may <\/span><span data-preserver-spaces=\"true\">decide to<\/span><span data-preserver-spaces=\"true\"> focus on tenant retention strategies, such as modest rent increases tied to lease renewals.<\/span><span data-preserver-spaces=\"true\">\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">4. <span data-preserver-spaces=\"true\">Median Home Prices and Year-Over-Year Changes\u00a0<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Median home price trends help investors understand whether a market is heating up or cooling down.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Example:<\/span><span data-preserver-spaces=\"true\"> If home prices in a county increased 10% YoY while rents increased 3%, gross rental yields may compress. On the other hand, if home prices remained stable while rents rose, yields may improve.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Actionable step:<\/span><span data-preserver-spaces=\"true\"> Compare price changes <\/span><span data-preserver-spaces=\"true\">against<\/span><span data-preserver-spaces=\"true\"> rental and wage data before <\/span><span data-preserver-spaces=\"true\">moving forward<\/span><span data-preserver-spaces=\"true\"> with property-level analysis.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">The Power of Comparing Metrics&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400;\">The real value of the SFR reports is the ability to see how data sets interact.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Home prices vs. wages&nbsp;<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">If home prices are rising faster than wages, affordability may decline, potentially keeping more households in the rental market.\u00a0<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">If wages rise faster than home prices, more households could transition to ownership, reducing demand for rentals in the short term.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\"><strong>Actionable step:<\/strong> Use this comparison to gauge whether a market is more likely to see sustained renter demand or a shift toward homeownership.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Rents vs. home prices&nbsp;<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">If rents outpace home prices, yields may improve, signaling potential for stronger cash flow.\u00a0<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">If home prices rise faster than rents, yields may compress, which could push investors to either negotiate purchase prices more aggressively or look elsewhere.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\"><strong>Actionable step:<\/strong> Consider whether the rent-to-price balance supports the level of yield you want to target.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400;\">Rents vs. wages&nbsp;<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">If rents rise faster than wages, tenant affordability could become strained.\u00a0<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">If wages rise faster than rents, stability may increase, as tenants are better positioned to meet rent obligations.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400;\"><strong>Actionable step:<\/strong> Align lease renewal strategies with wage growth, ensuring long-term tenant retention.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">From National to Local: Why Drilling Down Matters&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">One of the most powerful features of the Equity Trust SFR reports is the ability to drill down from a national overview to your state, city, or county.&nbsp;<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">Example: <\/span><\/em><span data-preserver-spaces=\"true\">A national report might show stable rental growth, but within your state, one county could have double the growth rate of the average. Having visibility at multiple levels helps you align your IRA strategy with your preferred geography.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Anticipating Where Trends Are Going&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Real estate markets don\u2019t move in isolation. Major corporate expansions, infrastructure projects, and demographic shifts can reshape rental demand.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For instance, consider communities that are currently building large data centers for companies like Amazon, Microsoft, Meta Platforms, or OpenAI. <\/span><span data-preserver-spaces=\"true\">These projects may bring new jobs and <\/span><span data-preserver-spaces=\"true\">higher wage<\/span><span data-preserver-spaces=\"true\"> earners <\/span><span data-preserver-spaces=\"true\">into<\/span><span data-preserver-spaces=\"true\"> an area.<\/span><span data-preserver-spaces=\"true\"> While this doesn\u2019t guarantee an outcome, investors could ask:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">How might wages change in this market as new employers arrive?\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Will rising incomes outpace rents and home prices?\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Could demand for housing increase, and how might that impact SFR rental yields?\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">By framing questions around the data, investors may anticipate where trends are going rather than reacting after the fact.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Bringing It Together&nbsp;&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Equity Trust Company, a leading self-directed IRA custodian, provides access to interactive&nbsp;single-family rental reports,&nbsp;powered by annual data from ATTOM Data Solutions. <\/span><span data-preserver-spaces=\"true\">These reports <\/span><span data-preserver-spaces=\"true\">bring together<\/span><span data-preserver-spaces=\"true\"> national and local trends in one place, <\/span><span data-preserver-spaces=\"true\">helping<\/span><span data-preserver-spaces=\"true\"> investors evaluate opportunities.<\/span><span data-preserver-spaces=\"true\"> Dashboards enable you to compare key data, including:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Gross rental yield\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Median rent values and year-over-year changes\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Wages and their relationship to rents and home prices\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Median home prices with annual trends\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Ready to see the numbers for yourself? Access the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.trustetc.com\/real-estate-solutions\/real-estate-reports\/?utm_source=bigger_pockets&amp;utm_medium=blog&amp;utm_campaign=awareness_education&amp;utm_term=sfr_reports_blog&amp;utm_content=sfr_reports_cta\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">single-family rental reports<\/span><\/a><span data-preserver-spaces=\"true\"> and start exploring the markets that matter to you.<\/span><\/p>\n\n\n\n<p><em>Equity Trust Company is a directed custodian and does not provide tax, legal, or investment advice. Any information communicated by Equity Trust is for educational purposes only, and should not be construed as tax, legal, or investment advice. Whenever making an investment decision, please consult with your tax attorney or financial professional.&nbsp;<\/em><\/p>\n\n\n\n<p><em>BiggerPockets\/PassivePockets is not affiliated in any way with Equity Trust Company or any of Equity\u2019s family of companies. Opinions or ideas expressed by BiggerPockets\/PassivePockets are not necessarily those of Equity Trust Company, nor do they reflect their views or endorsement. The information provided by Equity Trust Company is for educational purposes only. Equity Trust Company, and their affiliates, representatives, and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal. Please consult your tax and legal advisors before making investment decisions. Equity Trust and Bigger Pockets\/Passive Pockets may receive referral fees for any services performed as a result of being referred opportunities.&nbsp;<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate investing can be both exciting and complex. With multiple factors influencing returns\u2014rents, wages, and home prices among them\u2014knowing where to invest, what to charge, and how to track [&hellip;]<\/p>\n","protected":false},"author":613768,"featured_media":184924,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7389],"tags":[],"class_list":["post-184927","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-analysis"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184927","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613768"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=184927"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184927\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/184924"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=184927"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=184927"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=184927"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}