Total Returns to Single Family Rentals

59 Pages Posted: 22 Mar 2021

See all articles by Andrew Demers

Andrew Demers

Structured Portfolio Management, LLC

Andrea L. Eisfeldt

UCLA Anderson School of Management

Date Written: February 13, 2021


The market value of US Single Family Rental assets totals more than $2.3 trillion. We believe that we provide the first systematic analysis of total returns to Single Family Rentals over a long time period, in a broad and granular cross section. We find that total nominal returns are approximately equalized across US cities, at about 8.5%, the same order of magnitude as equity returns. On average, net rental yields and house price appreciation have each contributed around half of the 8.5% total return. However, these two components are negatively correlated in the cross section. High price tier cities accrued more capital gains, while low price tier cities had higher net rental yields. Within cities, we show that lower-price-tier zip codes have higher total returns as a result of both higher yields and higher house price appreciation.

Keywords: house price appreciation, rental yields, single family rental, SFR, buy-to-rent, BTR

Suggested Citation

Demers, Andrew and Eisfeldt, Andrea L., Total Returns to Single Family Rentals (February 13, 2021). Available at SSRN: or

Andrew Demers

Structured Portfolio Management, LLC ( email )

100 Washington Blvd
Stamford, CT 06902
United States

Andrea L. Eisfeldt (Contact Author)

UCLA Anderson School of Management ( email )

110 Westwood Plaza
Los Angeles, CA 90095-1481
United States

HOME PAGE: http://

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