What Is a Good Rental Yield in 2025? Benchmarks by Market
See what rental yield percentages count as good, average, or excellent in 2025 by property type and location.
- rental yield
- benchmarks
- 2025
- property investment
What Is a Good Rental Yield in 2025? Benchmarks by Market
Rental yield is the foundation of property investment returns. But “good” depends on where you are investing, what you are buying, and whether you prioritize cash flow or appreciation. This guide sets realistic yield benchmarks for 2025.
Yield Benchmarks by Property Type
| Property Type | Good Gross Yield | Excellent Gross Yield |
|---|---|---|
| Single-family home | 6-8% | 9%+ |
| Duplex/triplex | 7-9% | 10%+ |
| Apartment building | 8-10% | 12%+ |
| Student housing | 9-12% | 14%+ |
| Vacation rental | 10-15% | 18%+ |
Yield Benchmarks by Location
United States:
- Midwest/South: 8-12% gross typical
- Northeast: 5-8% gross typical
- West Coast: 3-6% gross typical
United Kingdom:
- Northern England: 7-10% gross typical
- Midlands: 6-8% gross typical
- London: 3-5% gross typical
Australia:
- Regional cities: 6-8% gross typical
- Sydney/Melbourne: 3-5% gross typical
Gross vs Net: The Real Number
Gross yield is what agents advertise. Net yield is what you keep. A property with 10% gross yield might only deliver 6% net after expenses. Always calculate net yield before buying.
Common expense ratios:
- Management: 8-12%
- Maintenance: 5-10%
- Insurance: 2-4%
- Vacancy: 5-10%
- Property tax: 1-3%
Total expenses typically run 25-40% of gross rent.
Yield vs Appreciation Trade-off
High-yield markets often appreciate slowly. Low-yield markets may see strong price growth. There is no universal right answer. Cash-flow investors prioritize yield. Wealth-builders prioritize appreciation.
Using Our Calculator
Input your specific numbers into our rental yield calculator. It handles gross yield, net yield, and monthly cash flow automatically. Adjust expense ratios to match your market.
2025 Market Outlook
Interest rates remain elevated compared to 2021, compressing yields in leveraged purchases. All-cash buyers have an advantage. Markets with job growth and limited housing supply continue to perform well despite higher rates.
Target net yields above 4% for single-family and above 6% for multifamily. Anything below 3% net is difficult to justify unless appreciation is virtually guaranteed.