Yield is an important financial metric that helps you understand a property’s potential return on investment. It’s calculated by expressing the annual rental income as a percentage of the property’s purchase price or current market value. In simple terms, it shows how much of the property’s value could be earned back each year through short-term rental income.
Yield is calculated as Revenue Potential / Purchase Price.
We add a projected yield value to all for-sale listings by dividing the projected revenue figure by the listed purchase price. For example, if we forecast a property to generate $24,000 in annual rental income and it was purchased for $240,000, the yield would be 10%. To put it simply, that means you would make back your total investment in 10 years. This calculation provides a quick snapshot of the gross return on investment.
Click Find a Market to open the country view, then use the metric drop-down on the map to select Yield. This will highlight the markets with the strongest yield performance, showing where the highest percentage returns are being generated.
You can also click the small arrow icon at the bottom of the map to expand the map.
Click For-Sale Properties in the left-side navigation panel to view all properties currently for sale in the selected market.
In the tile view, you’ll see a snapshot of each property’s projected 12-month performance, including yield. The map view also color-codes properties from highest (dark blue) to lowest (light blue) projected yield, making it easy to compare investment potential by location.
You can also switch to Submarkets on the map to view the potential yield in smaller, neighborhood and district areas.
For all US for-sale listings displayed on the platform, we provide a projected yield percentage, revenue, average daily rate, and occupancy rate.
For more information about yield, why it’s an important metric in the STR industry, and what makes a strong yield rate, check out the related article on our blog.