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what is a good rate of return on rental property

1Answers
JudeLee
11/28/2025, 06:30:30 AM

In the US, a typical good rate of return on a rental property ranges from 5% to 8% for gross rental yield, though this varies by location and property type. Investors often target an annual ROI comparable to or above the S&P 500 average of around 10%. A solid return should exceed the property’s expenses without being unusually high, which may signal hidden risks or issues with the investment.

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