Fancy being a landlord? Here are 10 metros offering double-digit rental returns

Stocks are pricey and bonds aren’t yielding much. But renting out homes can offer big bucks via a steady stream of double-digit returns

Real estate data provider Attom Data collected the top 25 zip codes for single-family rentals, all of which offer hefty yields.

The housing market has been stymied by a lack of inventory to satisfy buyer demand — and the rental market faces many of the same challenges. In fact, as Attom noted in its release, many would-be buyers have been turned off by the lack of available homes to buy and the high prices for the supply that is available.

Read: Why aren’t there enough houses to buy?

Below are the top ten metros in which to be a landlord for a single-family rental. Attom’s expanded list of the top 25 such areas can be found here – MarketWatch skipped duplicate cities for this smaller top ten version.

Zip – metro area	Gross rental yield*	3-bedroom fair market rent	Annual net cash flow
30238 – Atlanta, Georgia	17.7%	$1,330	$11,777
77373 – Houston, Texas	13.5%	$1,730	$12,912
34472 – Ocala, Florida	13.1%	$1,240	$10,405
76140 – Fort Worth, Texas	12.7%	$1,620	$12,979
34608 – Tampa, Florida	11.6%	$1,300	$11,005
78617 – Austin, Texas	11.6%	$1,710	$13,733
85339 – Phoenix, Arizona	11.3%	$2,070	$17,642
33068 – Miami, Florida	11.2%	$1,870	$15,502
38058 – Memphis, Tennessee	10.9%	$1,280	$11,154
28214 – Charlotte, North Carolina	10.8%	$1,460	$12,347
*Gross rental yield is annualized gross rent divided by median home price. Annual net cash flow is net cash flow based on cash purchase of home – but including property taxes, insurance, and estimated maintenance/management costs.

Nearly half of the zips on Attom’s top 25 have seen greater purchasing by institutional investors in 2017 compared to a year ago, but the other 14 have seen flat or declining interest from institutional investors, the company said in a release.

Read: Inflation is too low for the Fed, but rent is too high for the rest of us