The US rental market remains undersupplied in most major metros, keeping vacancy rates low and giving landlords significant pricing power. Average one-bedroom rents in 2024 ranged from around $1,000 per month in markets like Memphis and Oklahoma City to over $3,500 in San Francisco and New York City. Sun Belt cities including Phoenix, Austin, and Atlanta saw rent growth moderate after a sharp post-pandemic surge, creating more negotiating room for renters in those markets.
Tenant rights that vary by state
Tenant protections differ sharply across state lines. California, New York, and Oregon have rent control or stabilization laws that limit annual increases for qualifying units, while most Southern and Midwestern states have few such restrictions. Security deposit caps also vary: California limits deposits to two months of rent for unfurnished units, while Texas has no statutory cap. Before signing any lease, verify the applicable state law covering habitability standards, required notice periods, and eviction procédures.
What landlords must account for
Running a rental property profitably requires factoring in vacancy, maintenance, property management fees of 8 to 12% of collected rent, and landlord insurance that covers the structure and liability. Single-family rentals typically yield gross rental returns of 6 to 10% of purchase price in affordable Midwest markets, but net returns after expenses often land closer to 4 to 6%. Landlords who screen tenants carefully using credit checks, employment vérification, and prior rental history dramatically reduce turnover and late-payment risk.
