Pasco County emerges as top spot for rental investors

As home prices rise across the country, rental yields fluctuate, influencing the market dynamics for single-family rental investments in the Tampa Bay region. A new report highlights which counties are the best places to purchase an SFR.

According to ATTOM’s Q1 2025 Single-Family Rental Market report, the average gross rental yield for three-bedroom properties across the U.S. is projected at 7.45% for 2025, slightly down from 7.52% in 2024.

In Tampa Bay, the rental yield trends reflect broader national patterns, with investment returns slightly declining due to increasing home prices outpacing rental growth.

Hillsborough, Pinellas and Pasco counties have experienced rental yield shifts. While these counties continue to attract investors due to population growth and employment opportunities, rising property values are challenging new entrants in the rental market.

Takeaways from ATTOM’s report include:

Pinellas County: While rental yields have slightly declined, the area's appeal as a vacation and retirement destination ensures steady rental demand. In Pinellas, SFR sits at $425,000 with a gross rental yield of 7%.

Hillsborough County: Home prices have increased significantly, making it more expensive for investors to enter the market. However, rental demand remains strong due to job growth and an influx of new residents. According to ATTOM's data, the median sale price for an SFR in Hillsborough is $400,000, a 6.9% increase in rental yield with 5.1% year-over-year wage growth.

Pasco County: Offers relatively affordable home prices compared to neighboring counties, making it an attractive option for investors seeking higher rental yields. SFR here has a median home price of $295,100 with a gross rental yield of 8.75%.

Home prices in Tampa Bay have risen steadily over the past year, with median single-family home values increasing by nearly 10% in some areas. While this growth benefits existing property owners, it presents challenges for investors looking for high rental returns.

Meanwhile, median three-bedroom rents have not kept pace at the same rate, with gains averaging around 6% to 7% across the region.

Tampa Bay remains a strong market for SFR investors, but the landscape is shifting; see the full report here.