IRVINE, CA—Memphis, TN sits atop a ranking of the most and favorable single-family rental (SFR) markets measured by cap rate, with a cap rate of 7.3%, while the lowest cap rate in the study is San Francisco's 2.7%. This according to a recent ranking by HomeUnion, an online real estate investment management firm enabling value investing in SFR properties.
Cap rates are the relationship between an investment property's net operating income (rents minus expenses) and the market value of the property.
“Other asset classes underperformed in 2015, while single-family rental investors saw healthy returns in terms of income and appreciation in markets across the country,” explained Steve Hovland, manager, research services at HomeUnion. “Favorable supply and demand fundamentals and shifting views about renting among Millennials and seniors, created increased occupancy rates, which resulted in higher rent prices.”
| Metro Area | Cap Rate |
| San Francisco | 2.7% |
| San Jose | 2.7% |
| Orange County (California) | 3.0% |
| Los Angeles | 3.2% |
| New York City | 3.5% |
| Seattle | 3.5% |
| Oakland | 3.5% |
| San Diego | 3.6% |
| Sacramento | 3.6% |
| Portland | 3.9% |
“With continued turmoil in the securities markets, individual investors are increasingly looking for 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.”
HomeUnion is an online real estate investment management firm, bringing value investing to the individual investor in single-family rental properties. Based in Irvine, CA, it provides all the services needed for individuals to invest remotely in SFR properties. The company uses a combination of data-driven proprietary analytics to incorporate over 120 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves more than 20 locations and expanding. HomeUnion's role spans the lifecycle of the investment transaction: from identifying sound investments; handling all aspects of acquisition; maximizing income; protecting asset value; and selling it when the time comes.
IRVINE, CA—Memphis, TN sits atop a ranking of the most and favorable single-family rental (SFR) markets measured by cap rate, with a cap rate of 7.3%, while the lowest cap rate in the study is San Francisco's 2.7%. This according to a recent ranking by HomeUnion, an online real estate investment management firm enabling value investing in SFR properties.
Cap rates are the relationship between an investment property's net operating income (rents minus expenses) and the market value of the property.
“Other asset classes underperformed in 2015, while single-family rental investors saw healthy returns in terms of income and appreciation in markets across the country,” explained Steve Hovland, manager, research services at HomeUnion. “Favorable supply and demand fundamentals and shifting views about renting among Millennials and seniors, created increased occupancy rates, which resulted in higher rent prices.”
| Metro Area | Cap Rate |
| San Francisco | 2.7% |
| San Jose | 2.7% |
| Orange County (California) | 3.0% |
| Los Angeles | 3.2% |
| 3.5% | |
| Seattle | 3.5% |
| Oakland | 3.5% |
| San Diego | 3.6% |
| Sacramento | 3.6% |
| Portland | 3.9% |
“With continued turmoil in the securities markets, individual investors are increasingly looking for 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.”
HomeUnion is an online real estate investment management firm, bringing value investing to the individual investor in single-family rental properties. Based in Irvine, CA, it provides all the services needed for individuals to invest remotely in SFR properties. The company uses a combination of data-driven proprietary analytics to incorporate over 120 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves more than 20 locations and expanding. HomeUnion's role spans the lifecycle of the investment transaction: from identifying sound investments; handling all aspects of acquisition; maximizing income; protecting asset value; and selling it when the time comes.
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