GITNUXREPORT 2025

Single Family Rental Statistics

Single-family rentals grow, attract Millennials, yield strong returns, and dominate markets.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

Around 18% of single-family rentals are owned by institutional investors

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The average down payment for investors purchasing SFRs is around 20%

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The top five states with the highest SFR investment activity are Texas, Florida, Georgia, North Carolina, and Arizona

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SFR properties are increasingly being purchased via cash transactions, accounting for about 70% of deals

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The typical SFR investor owns approximately 4 properties

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The average annual return on investment (ROI) for single-family rental properties is estimated at 8-12%

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Institutional investors own roughly 38% of the top 50 largest SFR portfolios in the U.S.

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Over 50% of SFR landlords own fewer than 3 properties, indicating a predominantly small-scale investor base

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The average investor in SFRs is a middle-aged male, approximately 45 years old, with a household income over $100,000

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The total value of all single-family rental homes in the U.S. is estimated to exceed $4 trillion, making it a critical component of the housing economy

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The share of SFRs owned by private investors has declined slightly as institutional ownership has increased, from about 43% to 38% over the past decade

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Single-family rental properties are increasingly integrated into real estate investment trusts (REITs), representing about 10% of the SFR market

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The single-family rental (SFR) market has grown to account for approximately 17 million units in the United States

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SFR investments increased by roughly 15% annually from 2018 to 2022, demonstrating strong growth momentum

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Single-family rental markets are projected to grow at a Compound Annual Growth Rate (CAGR) of 4.8% through 2028

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The share of rental homes that are single-family units rose by about 12% from 2010 to 2020

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SFR properties are increasingly being purchased through online platforms, representing about 80% of transactions

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The majority of new construction homes converted to SFRs are built in the last 15 years, indicating recent development trends

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The average share of rent paid via digital platforms has increased to over 60%, reflecting rising tech adoption in property management

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The probability of a single-family rental property being located in a designated flood zone is about 15%, impacting insurance and risk management

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Federal tax incentives and policies favor SFR investment, leading to an estimated 15% uplift in ROI through tax benefits

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The impact of interest rate fluctuations affects SFR affordability, with mortgage rates influencing potential investment returns

Statistic 23

The average property age for SFR units is approximately 40 years

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The median monthly rent for single-family homes in the U.S. is approximately $1,500

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The average property size for SFR units is around 1,500 square feet

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The average cap rate for SFR properties is approximately 6.5%, reflecting the return on investment capacity

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The majority of SFR properties are located in suburban areas, accounting for about 65% of the market

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The average cost per square foot for SFR properties is approximately $150, varying significantly by region

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SFR properties have seen an average appreciation rate of around 3% annually over the last decade

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Approximately 90% of SFR homes are owner-occupied before being converted into rentals, indicating high initial owner investment

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The average annual maintenance cost for an SFR property is estimated at $3,000, influencing overall ROI calculations

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The SFR sector has experienced an annual rent growth rate of about 5.4% over the past five years

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Rentals constitute roughly 35% of the U.S. housing market

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Millennials are the fastest-growing demographic among SFR renters, representing over 45% of tenants

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Single-family rental occupancy rates typically exceed 95%, indicating high demand and low vacancy rates

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Approximately 27% of renters in SFRs are classified as cost-burdened, spending more than 30% of their income on housing

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The average length of tenant occupancy in SFR properties is about 3 years, indicating stable tenancy periods

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The majority of SFR tenants are middle-income households earning between $50,000 and $75,000 annually

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The median age of SFR tenants is approximately 35 years, indicating a relatively young demographic

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SFRs constitute about 12% of the total rental housing stock in Metro areas

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The rental yield for SFR properties typically ranges from 7% to 9%, depending on location and property type

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About 60% of SFR tenants are long-term renters, staying more than 2 years, contributing to stability

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The multifamily housing sector still accounts for approximately 60% of rental housing, with SFR markets being the fastest-growing segment

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Single-family rentals tend to have higher occupancy rates in Sun Belt states compared to the Northeast, with occupancy over 96%

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The average length of time a tenant stays in a SFR property is slightly longer in suburban areas, around 3.5 years, versus urban areas at approximately 2.5 years

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SFR rental price increases tend to be more moderate than multifamily complexes, with annual increases around 4%

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The median annual gross rental income for SFRs varies significantly by region, ranging from $12,000 in some rural areas to over $36,000 in major markets

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Rental property owners cite maintenance and vacancy management as the top challenges, impacting profitability

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The national vacancy rate for single-family rentals is approximately 4.2%, indicating a highly competitive market

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SFR homes are increasingly being used as short-term rentals, especially in vacation destinations, accounting for about 10% of the market share

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The median household income of SFR tenants is around $65,000 annually, reflecting a middle-income demographic

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The average vacancy duration for SFR units is approximately 1 month, influencing turnover costs

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The US housing market vacancy rate overall is around 6%, but SFR vacancy is notably lower, indicating a tight rental market

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The median deposit for tenants in SFR homes is approximately one month’s rent, around $1,500, affecting entry costs for renters

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Key Highlights

The single-family rental (SFR) market has grown to account for approximately 17 million units in the United States
The SFR sector has experienced an annual rent growth rate of about 5.4% over the past five years
Rentals constitute roughly 35% of the U.S. housing market
Around 18% of single-family rentals are owned by institutional investors
The average property age for SFR units is approximately 40 years
The median monthly rent for single-family homes in the U.S. is approximately $1,500
The average down payment for investors purchasing SFRs is around 20%
The top five states with the highest SFR investment activity are Texas, Florida, Georgia, North Carolina, and Arizona
SFR properties are increasingly being purchased via cash transactions, accounting for about 70% of deals
The typical SFR investor owns approximately 4 properties
Millennials are the fastest-growing demographic among SFR renters, representing over 45% of tenants
The average annual return on investment (ROI) for single-family rental properties is estimated at 8-12%
Single-family rental occupancy rates typically exceed 95%, indicating high demand and low vacancy rates

The booming single-family rental market in the United States, now comprising approximately 17 million units and growing at a 4.8% CAGR through 2028, is reshaping residential investment and housing stability for middle-income tenants nationwide.

Investment Trends and Investor Profiles

Around 18% of single-family rentals are owned by institutional investors
The average down payment for investors purchasing SFRs is around 20%
The top five states with the highest SFR investment activity are Texas, Florida, Georgia, North Carolina, and Arizona
SFR properties are increasingly being purchased via cash transactions, accounting for about 70% of deals
The typical SFR investor owns approximately 4 properties
The average annual return on investment (ROI) for single-family rental properties is estimated at 8-12%
Institutional investors own roughly 38% of the top 50 largest SFR portfolios in the U.S.
Over 50% of SFR landlords own fewer than 3 properties, indicating a predominantly small-scale investor base
The average investor in SFRs is a middle-aged male, approximately 45 years old, with a household income over $100,000
The total value of all single-family rental homes in the U.S. is estimated to exceed $4 trillion, making it a critical component of the housing economy
The share of SFRs owned by private investors has declined slightly as institutional ownership has increased, from about 43% to 38% over the past decade
Single-family rental properties are increasingly integrated into real estate investment trusts (REITs), representing about 10% of the SFR market

Investment Trends and Investor Profiles Interpretation

As institutional investors amass nearly 40% of the nation’s $4 trillion single-family rental market—predominantly in cash, across key states, and with a typical portfolio of just four properties—the landscape reveals a shifting balance: small-scale landlords, mostly middle-aged men earning six figures, remain vital, yet their influence gradually gives ground to larger players and REITs, highlighting a housing economy where strategic investment is as much about scale as it is about stability.

Market Growth and Demographics

The single-family rental (SFR) market has grown to account for approximately 17 million units in the United States
SFR investments increased by roughly 15% annually from 2018 to 2022, demonstrating strong growth momentum
Single-family rental markets are projected to grow at a Compound Annual Growth Rate (CAGR) of 4.8% through 2028
The share of rental homes that are single-family units rose by about 12% from 2010 to 2020
SFR properties are increasingly being purchased through online platforms, representing about 80% of transactions
The majority of new construction homes converted to SFRs are built in the last 15 years, indicating recent development trends
The average share of rent paid via digital platforms has increased to over 60%, reflecting rising tech adoption in property management

Market Growth and Demographics Interpretation

With approximately 17 million units and an annual growth rate of nearly 5%, the single-family rental market is transforming into both a sprawling real estate powerhouse and a Silicon Valley tech trend, proving that even in housing, evolution is the only constant.

Policy, Regulations, and Economic Factors

The probability of a single-family rental property being located in a designated flood zone is about 15%, impacting insurance and risk management
Federal tax incentives and policies favor SFR investment, leading to an estimated 15% uplift in ROI through tax benefits
The impact of interest rate fluctuations affects SFR affordability, with mortgage rates influencing potential investment returns

Policy, Regulations, and Economic Factors Interpretation

While nearly one in seven single-family rentals face flood zone risks and interest rate shifts threaten their affordability, savvy investors are still cashing in on tax incentives that boost ROI by 15%, proving it's a game of strategic risk and reward.

Property Characteristics and Valuation

The average property age for SFR units is approximately 40 years
The median monthly rent for single-family homes in the U.S. is approximately $1,500
The average property size for SFR units is around 1,500 square feet
The average cap rate for SFR properties is approximately 6.5%, reflecting the return on investment capacity
The majority of SFR properties are located in suburban areas, accounting for about 65% of the market
The average cost per square foot for SFR properties is approximately $150, varying significantly by region
SFR properties have seen an average appreciation rate of around 3% annually over the last decade
Approximately 90% of SFR homes are owner-occupied before being converted into rentals, indicating high initial owner investment
The average annual maintenance cost for an SFR property is estimated at $3,000, influencing overall ROI calculations

Property Characteristics and Valuation Interpretation

With most single-family rentals boasting a 40-year age and a solid 6.5% cap rate, savvy investors find that these 1,500-square-foot suburban gems—initially owner-occupied and appreciating around 3% annually—offer a practical balance of steady income, regional value variation, and manageable maintenance costs amid a median rent of $1,500.

Rental Market Dynamics and Tenant Profile

The SFR sector has experienced an annual rent growth rate of about 5.4% over the past five years
Rentals constitute roughly 35% of the U.S. housing market
Millennials are the fastest-growing demographic among SFR renters, representing over 45% of tenants
Single-family rental occupancy rates typically exceed 95%, indicating high demand and low vacancy rates
Approximately 27% of renters in SFRs are classified as cost-burdened, spending more than 30% of their income on housing
The average length of tenant occupancy in SFR properties is about 3 years, indicating stable tenancy periods
The majority of SFR tenants are middle-income households earning between $50,000 and $75,000 annually
The median age of SFR tenants is approximately 35 years, indicating a relatively young demographic
SFRs constitute about 12% of the total rental housing stock in Metro areas
The rental yield for SFR properties typically ranges from 7% to 9%, depending on location and property type
About 60% of SFR tenants are long-term renters, staying more than 2 years, contributing to stability
The multifamily housing sector still accounts for approximately 60% of rental housing, with SFR markets being the fastest-growing segment
Single-family rentals tend to have higher occupancy rates in Sun Belt states compared to the Northeast, with occupancy over 96%
The average length of time a tenant stays in a SFR property is slightly longer in suburban areas, around 3.5 years, versus urban areas at approximately 2.5 years
SFR rental price increases tend to be more moderate than multifamily complexes, with annual increases around 4%
The median annual gross rental income for SFRs varies significantly by region, ranging from $12,000 in some rural areas to over $36,000 in major markets
Rental property owners cite maintenance and vacancy management as the top challenges, impacting profitability
The national vacancy rate for single-family rentals is approximately 4.2%, indicating a highly competitive market
SFR homes are increasingly being used as short-term rentals, especially in vacation destinations, accounting for about 10% of the market share
The median household income of SFR tenants is around $65,000 annually, reflecting a middle-income demographic
The average vacancy duration for SFR units is approximately 1 month, influencing turnover costs
The US housing market vacancy rate overall is around 6%, but SFR vacancy is notably lower, indicating a tight rental market
The median deposit for tenants in SFR homes is approximately one month’s rent, around $1,500, affecting entry costs for renters

Rental Market Dynamics and Tenant Profile Interpretation

With a 5.4% annual rent growth amidst a 4.2% vacancy rate and high demand from millennial middle-income tenants, the single-family rental sector proves to be a resilient, fast-growing niche that balances moderate price increases with considerable stability—and while affordability remains a concern for over a quarter of renters, owners enjoy occupancy rates exceeding 95%, making SFRs a crucial—and competitive—pillar of the U.S. housing landscape.