It’s not apples to apples.
As you may recall, last week we looked at the affordability of popular U.S. investment destinations compared to major markets around the world. We argued that the U.S. offers the best “entry price” for real estate investment, both in absolute terms and when adjusted for affordability.
This week, in Part 2 of our Deep Dive Series, we look at the relative income potential of US real estate investment compared to other major global markets in 2026.
Investing in residential properties or buying-to-let is a form of business, and as a business owner, making a profit is the priority. A common metric used to measure the profitability of a US real estate investment is rental yield, the annual rental income a property generates as a percentage of its value.
US Real Estate Investment Yields by City
According to Global Property Guide’s 2026 rental yield research, the average gross rental yield across the United States stood at 6.71% in Q2 2026, up from 6.56% in Q4 2025. City-level averages vary considerably:
| City | Average Gross Rental Yield |
|---|---|
| Philadelphia | 8.87% |
| Houston | 8.75% |
| Chicago | 8.59% |
| Orlando | 8.37% |
| Atlanta | 7.59% |
| Washington, D.C. | 7.39% |
| Miami | 6.84% |
| San Francisco | 6.55% |
| Portland | 6.43% |
| Las Vegas | 6.28% |
| San Diego | 5.38% |
| Boston | 5.16% |
| New York | 5.03% |
| Seattle | 4.82% |
| Los Angeles | 4.59% |
Source: Global Property Guide, United States rental yields, last updated June 2026
As the table shows, secondary and Sun Belt markets like Philadelphia, Houston, Chicago, and Orlando continue to significantly outperform coastal gateway cities like New York, Seattle, and Los Angeles on a pure yield basis, a trend consistent with what we found in Global Property Guide’s data throughout 2025 and into 2026.
How US Real Estate Investment Compares to Global Markets
To put U.S. performance in context, Global Property Guide’s country-level rental yield comparison (last updated July 2026) shows the following average gross residential rental yields:
| Market | Average Gross Rental Yield |
|---|---|
| United Kingdom | 7.35% |
| United States | 6.71% |
| Canada | 5.72% |
| Australia | 4.69% |
| Hong Kong | 3.55% |
| Singapore | 3.06% |
| China | 2.63% |
Source: Global Property Guide, Residential Rental Yields by City, updated July 2026
A note on this comparison: the UK’s national average is boosted by higher-yielding regional markets outside London; London itself, along with Sydney, Vancouver, and other prime gateway cities in these countries, typically yields well below its national average, closer to the Hong Kong and Singapore end of the scale.
Myth Buster: Does the US Tax Regime Make Investing Difficult?
A common misconception is that the U.S. tax regime makes investing difficult or unfeasible for foreign investors. In practice, foreign national and expat investors can structure ownership (directly, through an LLC, or through other entities) to manage tax exposure effectively, and net yields in the U.S. remain competitive even after accounting for property and rental income tax. As a general rule of thumb, Global Property Guide notes that net yields typically run 1.5–2 percentage points lower than gross yields across most markets, U.S. and international alike, so the relative ranking between markets tends to hold even after taxes are factored in.
Let Someone Else Pay for Your Mortgage
One of the most compelling aspects of a strong US real estate investment is the potential for rental income to substantially offset, or even fully cover, your mortgage payment.
As of July 2026, the average 30-year fixed mortgage rate in the U.S. stood at 6.49%, according to Freddie Mac’s Primary Mortgage Market Survey. In higher-yield cities like Philadelphia, Houston, Chicago, and Orlando, where gross yields exceed 8%, rental income can cover a meaningful share of the monthly mortgage payment even at today’s rate environment, particularly for investors who put down a larger equity position to improve their debt coverage ratio.
By contrast, in lower-yield international markets like Hong Kong and Singapore (3.55% and 3.06% respectively), rental income covers a much smaller portion of financing costs relative to property value, reinforcing why so many investors in those markets look to the U.S. for stronger income-generating alternatives.
Beyond Yield: What Else to Consider
Rental yield, like affordability, is just one piece of the property investment puzzle. Other important factors include a market’s growth potential, capital gains outlook, and price appreciation trends, which we’ll cover in our next report.
Final Thoughts on US Real Estate Investment
Taken together, this analysis shows that US real estate investment continues to offer strong, competitive rental yields compared to major global markets, particularly in secondary metros and Sun Belt cities, while still holding up well against higher-yielding countries like the UK on a national average basis.
Next week, we’ll take a closer look at the underlying factors driving property value growth, and why they’re likely to affect U.S. real estate more favorably than other major global markets. You won’t want to miss it.
Stay tuned for the next installment of our Deep Dive series. Email us with any questions in the meantime.
Here’s a more detailed version of the CTA section:
Ready to Explore US Real Estate Investment?
The data is clear: U.S. real estate continues to offer some of the strongest income-generating opportunities among major global markets, but turning that opportunity into an actual property in your portfolio requires the right financing partner, especially if you’re investing from overseas.
At America Mortgages, we specialize in helping foreign nationals and U.S. expats secure financing for U.S. property, without requiring U.S. credit history, U.S. income, or U.S. residency. Whether you’re drawn to a high-yield market like Philadelphia or Houston, or considering a lower-yield but higher-growth city like New York or San Francisco, our team can help you evaluate financing options that align with your investment strategy.
We offer:
- Loan sizes from $150,000 to $5 million, suitable for both entry-level and high-value properties
- Up to 80% loan-to-value (LTV) on eligible purchases, refinances, and equity release
- DSCR loans for investment properties, where approval is based on the property’s rental income rather than your personal income
- Fixed-rate, adjustable-rate, and interest-only options, so you can structure repayment around your cash flow goals
- Support for over 150 U.S. bank and lender programs, giving you access to financing tailored to your specific profile and property type
Whether you’re purchasing your first U.S. investment property or expanding an existing portfolio, our specialists can walk you through how a specific city’s yield potential translates into real financing numbers for your situation.
Contact our team to schedule a call with a U.S. Mortgage Specialist, or email us directly at [email protected]to get started.
