It's a challenging market for single-family home rentals for both landlords and tenants, according to real estate data provider ATTOM. Its latest report on SFRs showed that profit margins are down year-over-year across most of the country. Furthermore, margins are "slightly more likely" to drop in areas that already have lower yields.

Using its own data and that licensed from third parties, the company analyzed SFR rental yields in 212 U.S. counties with populations of at least 100,000. Average gross rental yields—annualized 2022 gross rent divided by median purchase prices in the first quarter of 2022—before expenses on three-bedroom SFRs purchased this year decreased in 72% of counties.

That said, there's still value to be had. According to the data from ATTOM, yields before expenses for single-family rentals "are at least 7 percent this year in 98 (46 percent) counties."