But for now, that isn't the case and SFR is benefiting strongly from the current housing market constraints. Here are the top 10 metro areas for SFR, along with their year-to-date gross yields and their ratios of houses available for rent versus those for sale, based on data from Parcl and Moody's.

Rochester, NY — gross yield, 11.7%; rent-to-list ratio, 0.19
Harford, CT — gross yield, 8.6%; rent-to-list ratio, 0.15
Buffalo, NY — gross yield, 8.0%; rent-to-list ratio, 0.13
Pittsburgh, PA — gross yield, 8.0%; rent-to-list ratio, 0.50
Cleveland, OH — gross yield, 7.8%; rent-to-list ratio, 0.30
Cincinnati, OH — gross yield, 7.6%; rent-to-list ratio, 0.26
New Orleans, LA — gross yield, 7.5%; rent-to-list ratio, 0.46
Chicago, IL — gross yield, 7.4%; rent-to-list ratio, 0.25
Detroit, MI — gross yield, 7.0%; rent-to-list ratio, 0.33
Houston, TX — gross yield, 7.0%; rent-to-list ratio, 0.70

"When the number of properties currently available for rent compared to the number of properties currently available for sale is high, as captured by the rent-to-list ratio, gross yields tend to be lower," Moody's wrote. "There is also significant overlap between a high rent-to-list ratio and sizable institutional SFR portfolios in the metros. The converse is true for metros where the rent-to-list ratio is low. Houston notably stands out as a metro in which the gross yield cracks the top 10 yet has a high rent-to-list ratio and thousands of properties owned by institutional operators."

Instant Insights /

Here Are the Top Yielding SFR Markets in the U.S.

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