The best ZIP codes for gross rental yield in the 20 largest metros are concentrated in lower-priced neighborhoods of Detroit, St. Louis, Philadelphia, Chicago and Houston, where annual rent equals 14% to 36% of the typical home value, based on Zillow rent and home value indexes on DataPorium as of August 31, 2026 [1]. In the most expensive coastal metros, even the best ZIP codes yield far less: 6.4% in San Diego, 6.5% in San Francisco and 6.1% in Boston [1]. For comparison, the typical U.S. rent of $1,948 a month against a typical home value of $369,678 implies a national gross yield of about 6.3% [3].
How gross rental yield is calculated
Gross rental yield is one year of rent divided by the price of the property, before any costs. This table uses Zillow's Observed Rent Index (all homes plus multifamily, smoothed) and Zillow's Home Value Index (all homes, smoothed and seasonally adjusted) for each ZIP code in August 2026 [1]. The formula is 12 times the monthly rent index divided by the home value index. 1,555 ZIP codes had both a rent and a value index. Because the rent index includes apartments while the value index covers owner homes, the ratio is a screening tool that points to where rents are high relative to prices, not a promise of returns on a specific property.
ZIP codes were screened within each metro's core area, listed in the table, using the ZIP lists in DataPorium's real estate data [2]. DataPorium has no ZIP-level Zillow rent or value data for Baltimore, so the table substitutes St. Louis, the 21st-largest metro.
Best ZIP codes for gross rental yield by metro: the 2026 data table
For each metro, the table shows the number of ZIP codes screened, the median gross yield across them, and the ZIP codes with the highest yields as of August 2026 [1].
| Metro | Area screened | ZIPs | Median gross yield | Top ZIP | Rent / home value | Top yield | Next two ZIPs |
|---|---|---|---|---|---|---|---|
| New York | Five boroughs of New York City | 111 | 4.4% | 10462 (Bronx) | $2,528 / $259,983 | 11.7% | 10463 (10.7%), 10452 (9.9%) |
| Los Angeles | Los Angeles County | 267 | 3.7% | 90067 (Los Angeles) | $11,198 / $1,583,317 | 8.5% | 93535 (7.7%), 93552 (7.5%) |
| Chicago | Cook County | 125 | 6.8% | 60419 (Dolton) | $2,376 / $158,920 | 17.9% | 60426 (14.8%), 60621 (14.5%) |
| Dallas | Dallas and Tarrant counties | 148 | 6.1% | 75216 (Dallas) | $1,934 / $171,089 | 13.6% | 75215 (11.0%), 76164 (10.6%) |
| Houston | Houston's core county | 143 | 6.8% | 77033 (Houston) | $1,689 / $143,026 | 14.2% | 77020 (13.7%), 77016 (12.7%) |
| Washington | District of Columbia and Prince George's County | 55 | 5.7% | 20006 (Washington) | $1,974 / $225,092 | 10.5% | 20770 (9.3%), 20036 (8.7%) |
| Philadelphia | Philadelphia | 46 | 7.6% | 19132 (Philadelphia) | $1,450 / $75,458 | 23.1% | 19133 (21.1%), 19140 (16.2%) |
| Miami | ZIP codes with a Miami mailing address | 51 | 6.1% | 33179 (Miami) | $2,298 / $272,669 | 10.1% | 33136 (9.8%), 33172 (9.7%) |
| Atlanta | Fulton County | 48 | 5.5% | 30303 (Atlanta) | $1,892 / $200,404 | 11.3% | 30311 (10.1%), 30296 (9.6%) |
| Boston | Suffolk County (Boston, Chelsea, Revere, Winthrop) | 30 | 5.0% | 02125 (Dorchester) | $3,287 / $645,632 | 6.1% | 02150 (6.1%), 02119 (6.1%) |
| Phoenix | City of Phoenix | 41 | 4.5% | 85041 (Phoenix) | $2,181 / $365,920 | 7.2% | 85040 (6.9%), 85043 (6.4%) |
| San Francisco | San Francisco | 25 | 3.8% | 94103 (San Francisco) | $4,446 / $823,085 | 6.5% | 94105 (6.3%), 94102 (6.1%) |
| Riverside | City of Riverside | 7 | 4.6% | 92501 (Riverside) | $2,608 / $562,368 | 5.6% | 92506 (4.9%), 92507 (4.7%) |
| Detroit | City of Detroit | 16 | 15.1% | 48234 (Detroit) | $1,258 / $54,117 | 27.9% | 48203 (26.2%), 48227 (23.3%) |
| Seattle | King and Pierce counties | 107 | 3.9% | 98387 (Spanaway) | $2,798 / $505,396 | 6.6% | 98375 (6.4%), 98360 (6.2%) |
| Minneapolis | Hennepin and Ramsey counties | 78 | 5.6% | 55435 (Minneapolis) | $1,953 / $209,757 | 11.2% | 55101 (11.1%), 55444 (10.3%) |
| San Diego | San Diego County | 80 | 3.7% | 92108 (San Diego) | $3,150 / $586,156 | 6.4% | 92139 (5.7%), 92101 (4.9%) |
| Tampa | Hillsborough and Pinellas counties | 93 | 6.5% | 33711 (Saint Petersburg) | $2,237 / $275,667 | 9.7% | 33573 (9.6%), 33534 (8.7%) |
| Denver | Denver, Arapahoe and Adams counties | 69 | 4.5% | 80247 (Denver) | $1,737 / $252,498 | 8.3% | 80603 (7.9%), 80216 (6.7%) |
| St. Louis | City of St. Louis | 15 | 8.8% | 63120 (St. Louis) | $1,148 / $38,498 | 35.8% | 63115 (25.8%), 63113 (20.2%) |
Where the highest gross yields are
The highest yields in the screen are in ZIP codes where home values are very low. In Detroit, 48234 combines a typical rent of $1,258 with a typical home value of $54,117, a gross yield of 27.9% [1]. St. Louis (63120, 35.8%), Philadelphia (19132, 23.1%) and the Chicago suburb of Dolton (60419, 17.9%) follow the same pattern [1]. Across the 20 metros, 75 of 1,555 ZIP codes had a gross yield of 10% or more.
Why the highest yields deserve caution
Very high gross yields usually reflect higher risk and higher costs rather than free money. Low-value ZIP codes tend to have older housing, more vacancy and turnover, higher repair and insurance costs per dollar of value, and, in some cities, high property tax rates relative to value. A typical home value of $38,498 is a signal to investigate why prices are so low before assuming the rent can be collected in full. Investors may consider these figures a starting point for due diligence, not a measure of net return. Two Tampa-area ZIP codes, 33716 and 33763, showed gross yields of 12.8% and 11.4%, but their value indexes are weighted toward condominiums, so the table lists the next ZIP codes instead. Denver's 80247 and Los Angeles's 90067 are also condominium-heavy [1].
Median yields: Sun Belt and Midwest lead, the coasts trail
Looking beyond the single best ZIP code, the median gross yield shows how each metro prices rental housing overall. Detroit (15.1%), St. Louis (8.8%), Philadelphia (7.6%) and Chicago (6.8%) had the highest medians, while San Diego (3.7%), Los Angeles (3.7%) and San Francisco (3.8%) had the lowest [1]. Houston (6.8%), Tampa (6.5%) and Dallas (6.1%) stand out among large growth metros, where home prices are moderate relative to rents.
Financing costs matter as much as the yield. With the 30-year fixed mortgage rate at 7.03% in the week of September 24, 2026, a leveraged purchase only adds to returns where the net yield, after taxes, insurance, maintenance and vacancy, exceeds the cost of borrowing [4]. In coastal metros with median gross yields near 4%, that test is hard to pass, and returns depend on price appreciation. In the higher-yield metros, cash flow carries more of the return, which suits investors who prioritize income over growth.
The highest gross rental yields are found where home values are lowest, which is also where risks and costs are highest.
Key takeaways
- Detroit's 48234 (27.9%), St. Louis's 63120 (35.8%) and Philadelphia's 19132 (23.1%) had the highest gross yields in the screen as of August 2026 [1].
- Detroit, St. Louis and Philadelphia had the highest median ZIP yields; San Diego, Los Angeles and San Francisco had the lowest [1].
- The best ZIP code in San Diego yielded 6.4% and in San Francisco 6.5%, below the median ZIP in many Midwest and Texas metros [1].
- The typical U.S. rent was $1,948 and the typical home value $369,678 in August 2026, a national gross yield of about 6.3% [3].
Frequently asked questions
What is a good gross rental yield?
There is no single threshold: investors typically compare the gross yield with their borrowing cost plus expected taxes, insurance, maintenance and vacancy. The U.S. average implied by Zillow's August 2026 figures was about 6.3% [3].
Which ZIP codes have the highest rental yield in 2026?
In the 20 largest metros screened, 63120 in St. Louis (35.8%), 48234 in Detroit (27.9%) and 19132 in Philadelphia (23.1%) had the highest gross yields as of August 2026 [1].
How do you calculate gross rental yield?
Multiply the monthly rent by 12 and divide by the property value. A home worth $300,000 that rents for $2,000 a month has a gross yield of 8%.
Why are rental yields low in California?
Home values in coastal California are high relative to rents, so even the best ZIP codes in San Diego and San Francisco yield about 6% gross, and the median ZIP about 4% [1].
Sources & References
- [1] DataPorium Housing Market Insights (Zillow Observed Rent Index and Home Value Index by ZIP code, August 2026)
- [2] DataPorium Real Estate (ZIP code and property tax data)
- [3] Zillow, August 2026 Market Report (press release, September 8, 2026)
- [4] Federal Reserve Bank of St. Louis (FRED), 30-Year Fixed Rate Mortgage Average in the United States (MORTGAGE30US)
