Glossary
Rental yield
Rental income compared with the purchase price and ownership costs.
What it means
Rental yield estimates how much rental income a property can produce relative to its price.
Gross yield compares annual rent with the purchase price. Net yield also subtracts taxes, insurance, HOA fees, repairs, vacancy, and management.
For real estate decisions, net yield is usually more useful than headline rent because ownership costs vary sharply by city, building, and property type.