Methodology
How Rental Yield Is Calculated
Gross rental yield measures the annual rental income as a percentage of the property value before expenses. It provides a standardized way to compare the income-generating potential of properties across different markets.
Data Sources
Zillow
Industry-standard home value and rental data covering millions of properties nationwide. Provides smoothed, seasonally adjusted estimates at the ZIP code level.
Redfin
Comprehensive market data sourced from MLS listings and transaction records. Offers granular insights into home values, sales trends, and rental activity.
Update Frequency
Zillow and Redfin update their data monthly. Our pipeline processes new data as it becomes available, typically within 1–2 days of release. Current data covers 7,700+ ZIP codes across all 50 states and Washington D.C. where both home value and rent data are available.
Limitations & Caveats
- •Gross yield does not account for operating expenses (property taxes, insurance, maintenance, vacancy, management fees).
- •Net yield is typically 2–4% lower than gross yield depending on local conditions.
- •Rental data is not available for all ZIP codes — our coverage is limited to areas where sufficient rental data exists.
- •Home values and rents are index-derived estimates, not transaction prices. Actual purchase/rental prices may vary.
- •Past performance does not predict future returns. Real estate markets are cyclical and subject to local economic conditions.
- •This data is for informational purposes only and should not be considered investment advice.