A recent article from RealtyTrac has Nashville pegged as one of their Top 25 Hidden Gems for Single Family Rental Market. Davidson County sits at number 6 on their list with a nice 10.2% Gross Yield for rental investment homes in Nashville. Determining factors for the list included gross rental yield, the expected return on investment before accounting for taxes, maintenance fees and other costs.
Gross Yield, which is determined by dividing the gross annual rental income by the purchase price or market value of the property, is a basic way to compare rental properties.
“Buying single-family homes as rentals still yields solid returns in many markets across the nation, but it is difficult for individual investors and even small-to medium-sized institutional investors to find reasonably priced inventory in markets dominated by the 800-pound gorillas in the single-family rental space,” said Daren Blomquist, vice president at RealtyTrac, in a news release. “With this analysis we’ve identified the top overlooked markets where single-family rentals still make good financial sense but where there is little to no competition from the big players.”
This comes as good news for anyone who has been sitting on the fence trying to decide whether or not to jump into the investment home arena in Nashville. While no investment is guaranteed, this information is very comforting to know that the rental market here in Nashville is among tops in the nation.