HomeUnion, an online real estate investment management company, ranks the best and worst rental markets for single-family homes based on cap rate. Housing Wire staffer Brena Swanson explains how to calculate the cap rate, the relationship between an investment property’s net operating income and the market value of the property, as she spotlights the list, which ranks Memphis as the best city.
HomeUnion's CEO explains why so many investors are so keen on single-family rental as an asset class:
“With continued turmoil in the securities markets, individual investors are increasingly looking to an alternative to low-yield bonds and risky stocks,” explained Don Ganguly, CEO of HomeUnion. “The SFR market is not correlated to the securities market, and with the right research, investors can find high-yield investments in markets anchored by solid, diverse economies and favorable demographics.”