Delaware County ranked in the upper half among best markets for buying single family rental properties in 2021, according to a new report by ATTOM.

The Q1 2021 Single Family Rental Market report ranked 495 counties with a population of at least 100,000 using rental data from the U.S. Department of Housing and Urban Development and home price data from publicly recorded sales.

Delaware County ranked in No. 152 with an annual gross rental yield for 2021 of 8.4 percent.

That represents a significant drop of 17 percent in yield year-over-year, but the lower yields are not unique to Delco,

“The single-family home rental business is less profitable this year compared to last year across most of the country, with yields on the average deals decreasing,” said Todd Teta, chief product officer at ATTOM Data Solutions.

“That’s happening as home prices on properties that investors are paying for, in most areas, are rising considerably faster than rents, which is cutting into their profit margins.”

“Nevertheless, returns on single-family rentals still generally remain strong and there are pockets, especially in the Midwest, where yields top 10 percent. “

The median sales price of single-family rental properties in the first quarter of 2021 was $241,000.

Delaware County also reported year-over-year wage growth of eight percent.

Read the entire report at the ATTOM.

The Fruitful Investor talks about why single family rental properties are a good investment.