rewrite this title How Single-Family Rental Data Can Help You Maximize ROI as a Real Estate Investor

In This Article

In today’s real estate environment, data isn’t optional—it’s essential. Whether you’re a first-time landlord or a seasoned investor looking to scale your portfolio, understanding where and when to invest is just as important as what you invest in. Tracking single-family rental (SFR) data for three-bedroom homes can provide insight into a segment that continues to attract stable, long-term tenants like families, professionals, and relocators.

To help investors identify markets with the most potential, annual SFR reports deliver critical insights across the county, state, and national levels. These reports combine rental pricing, wage data, rent-to-income ratios, gross rental yields, and home price trends—giving you a clear, comparative view of where opportunities may lie.

Let’s dive into the key data points found in these reports and how they can inform your investment decisions.

Three-Bedroom Rental Amounts and YoY Percentage Changes

One of the most telling indicators of a healthy rental market is how much tenants are paying—and how that’s changing year over year. Equity’s SFR reports provide median monthly rents for three-bedroom homes, along with year-over-year (YoY) percentage changes for each geography.

Why three-bedroom homes? They are the sweet spot for many tenants—large enough for families or roommates, yet still manageable and affordable. If you see a county where three-bedroom rents are rising 5% to 8% YoY, that can signal strong demand and potential pricing power for an investor.

You can also use this data as a benchmark for pricing other units. For example, in many markets, a two-bedroom home rents for 70%–85% of the three-bedroom rate. So, if the median three-bedroom rent in your target county is $2,000, you might reasonably expect a two-bedroom to command $1,400–$1,700, depending on local supply and tenant demographics. This insight allows you to forecast cash flow and compare rental growth across multiple markets—an invaluable edge when evaluating your next investment opportunity.

Wage Data and Rent-to-Income Ratios

Beyond rents, Equity’s reports also provide average weekly wage data from the Bureau of Labor Statistics, converted into monthly income estimates. This is critical because rent alone doesn’t tell the full story—affordability does.

With wage data in hand, the reports calculate rent-to-income ratios—the percentage of a typical tenant’s income that would go toward rent. As a rule of thumb, a 30% rent-to-income ratio is considered affordable. Higher ratios may suggest tenant stress and higher turnover risk; lower ratios signal a sustainable rental market.

For example:

County A: Median rent = $1,800 / Monthly income = $6,000 —> Rent-to-income ratio = 30%

County B: Median rent = $1,800 / Monthly income = $4,500 —> Rent-to-income ratio = 40%

In this case, County A is more likely to offer long-term stability and reliable cash flow. 

The reports also track YoY changes in affordability, helping you monitor whether markets are improving or deteriorating. This can help you identify areas where rents are outpacing income growth, which may increase your vacancy risk.

Gross Rental Yield

No metric matters more for ROI-seeking investors than gross rental yield. This figure, included in Equity’s SFR reports, is calculated as:

Gross Rental Yield = (Annual Rent ÷ Purchase Price) × 100

So, a $200,000 home generating $20,000 in annual rent would have a 10% gross rental yield.

Yield helps you quickly compare markets at a glance. Markets like Cuyahoga County, Ohio, or Wayne County, Michigan, often offer yields over 10%, reflecting strong cash flow opportunities. By contrast, high-cost coastal markets like Los Angeles or Miami may have yields closer to 4% to 5%, where appreciation might be the play rather than immediate income.

While gross yield doesn’t account for expenses, it’s a powerful starting point for market comparison and portfolio strategy.

You might also like

Home Prices, YoY Percentage Changes, and Comparative Trends

Home prices are another critical input in your investment analysis. The SFR reports provide median home prices alongside YoY appreciation data, letting you see how quickly values are rising.

Even more valuable, the reports compare:

Home prices vs. wages: If home prices are rising faster than wages, homeownership becomes less attainable, increasing rental demand.

Rents vs. home prices: When rents grow faster than home prices, rental yields improve—good news for investors.

Rents vs. wages: If rents rise faster than wages, affordability suffers, which could eventually dampen demand or increase turnover.

For example, if a county saw:

Home prices +8% YoY

Rents +10% YoY

Wages +4% YoY

This suggests a market where rental ROI is improving, but affordability may be tightening. As an investor, that could be a short-term opportunity—but also a flag to monitor affordability before investing heavily.

How Investors Can Use SFR Data Strategically

The power of Equity’s SFR reports lies in how the data layers together. By combining rental growth, wage trends, rental yields, and price dynamics, you can:

Pinpoint high-yield markets that offer immediate cash flow (e.g., counties with 10%+ yields)

Avoid tenant turnover risk by targeting balanced rent-to-income ratios (25% to 30%)

Watch YoY trends to spot rising-star markets before they hit the radar of larger investors

Optimize your portfolio by allocating capital to markets where rents are rising faster than home prices, indicating more attractive returns

Rather than chasing headlines, this data-centric approach allows you to make strategic, risk-aware investment decisions based on real numbers—not emotion.

Ready to Invest Smarter? Use Equity’s SFR Reports

Tracking three-bedroom SFR data may be the smartest move you make this year.

With detailed insights on rent trends, yields, affordability, and appreciation, Equity’s Single-Family Rental Reports, powered by ATTOM Data Solutions, give you a competitive edge in identifying the most promising markets for ROI.

Whether you’re a seasoned investor scaling your portfolio or a first-timer seeking your first property, these reports deliver actionable data at the county, state, or national level to help you invest with clarity.

Explore the reports to uncover new insights and start investing smarter.

Equity Specialty Services, LLC is a services company which offers services such as document preparation services, IRA Power Loans services and other services to assist an investor with its investments.  Equity Specialty Services, LLC is not authorized to advise you as to which documents you should use or may need or which services are recommended.  Equity Specialty Services, LLC does not offer investment, tax, or legal advice, and no services offered by us should be considered to replace the need for qualified investment, tax, and legal professionals. Please consult your legal or financial advisor before making any financial decisions. Under the guidelines for legal document preparation services, you must make all legal decisions yourself — including decisions about the type of documents you need.  Equity Specialty Services, LLC may receive or give referral fees for services it offers to investors. 

BiggerPockets/PassivePockets is not affiliated in any way with Equity Trust Company or any of Equity’s family of companies. Opinions or ideas expressed by BiggerPockets/PassivePockets are not necessarily those of Equity Trust Company nor do they reflect their views or endorsement. The information provided by Equity Trust Company is for educational purposes only. Equity Trust Company, and their affiliates, representatives and officers do not provide legal or tax advice. Investing involves risk, including possible loss of principal. Please consult your tax and legal advisors before making investment decisions. Equity Trust and BiggerPockets/PassivePockets may receive referral fees for any services performed as a result of being referred opportunities.