Late last month the real estate information company RealtyTrac published a report detailing the best and worst markets in the nation for rental returns.
Their measure of gross rental yields was determined using the median sales price for over 1500 counties in the nation, and the average fair market rent for a three bedroom home for 2014 as determined by the Department of Housing and Urban Development (HUD).
That fair market rent was multiplied by 12 months, then that total was divided by the media sales price in each county.
Wayne County, Michigan– home to Detroit, topped the nation for highest rental returns with an estimated yield of 30 percent.
Of course, the higher the risk, the higher the reward. And Detroit’s lingering economic doldrums may make it difficult to fill rental vacancies.
New York County, New York (home to New York city) had the worst rate of return in the nation at just three percent.
In the Twin Cities, the seven county metro area seemed to hover at yields of 7-8 percent.
That’s still a pretty good return compared to a savings account.