MReport April 2017

TheMReport — News and strategies for the evolving mortgage marketplace.

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TH E M R EP O RT | 13 Source: More MSAs available at Top 50 MSAs Yield Rochester, NY 16.4% Memphis, TN-MS-AR 14.1% Kansas City, MO-KS 12.2% Cleveland-Elyria, OH 12.0% Birmingham-Hoover, AL 11.9% Indianapolis-Carmel- Anderson, IN 11.7% Buffalo-Cheektowaga-Niagara Falls, NY 11.5% St. Louis, MO-IL 11.2% Oklahoma City, OK 11.0% Columbus, OH 10.4% Cincinnati, OH-KY-IN 10.1% Detroit-Warren-Dearborn, MI 10.1% New Orleans-Metairie, LA 10.0% Pittsburgh, PA 10.0% Milwaukee-Waukesha-West Allis, WI 9.9% Houston-The Woodlands- Sugar Land, TX 9.8% Louisville/Jefferson County, KY-IN 9.4% Atlanta-Sandy Springs- Roswell, GA 9.2% Chicago-Naperville-Elgin, IL-IN-WI 9.1% Tampa-St. Petersburg- Clearwater, FL 9.0% Jacksonville, FL 8.9% Philadelphia-Camden- Wilmington, PA-NJ-DE-MD 8.9% San Antonio-New Braunfels, TX 8.9% Dallas-Fort Worth-Arlington, TX 8.7% Richmond, VA 8.6% Charlotte-Concord-Gastonia, NC-SC 8.6% Top 50 MSAs Yield Nashville-Davidson- Murfreesboro-Franklin, TN 8.1% Miami-Fort Lauderdale-West Palm Beach, FL 7.9% Virginia Beach-Norfolk- Newport News, VA-NC 7.8% Raleigh, NC 7.8% Orlando-Kissimmee-Sanford, FL 7.7% Baltimore-Columbia-Towson, MD 7.6% Minneapolis-St. Paul- Bloomington, MN-WI 7.6% Hartford-West Hartford-East Hartford, CT 7.2% Denver-Aurora-Lakewood, CO 6.9% Austin-Round Rock, TX 6.5% Phoenix-Mesa-Scottsdale, AZ 6.3% Riverside-San Bernardino- Ontario, CA 6.1% Las Vegas-Henderson- Paradise, NV 6.1% Portland-Vancouver-Hillsboro, OR-WA 6.1% Washington-Arlington- Alexandria, DC-VA-MD-WV 5.7% Providence-Warwick, RI-MA 5.6% Boston-Cambridge-Newton, MA-NH 5.5% Sacramento-Roseville-Arden- Arcade, CA 5.4% Seattle-Tacoma-Bellevue, WA 5.2% New York-Newark-Jersey City, NY-NJ-PA 5.0% San Diego-Carlsbad, CA 4.7% Los Angeles-Long Beach- Anaheim, CA 4.6% San Francisco-Oakland- Hayward, CA 4.5% San Jose-Sunnyvale-Santa Clara, CA 3.8% Effective Gross Yields of Top 50 Metropolitan Statistical Areas (MSAs) Within states, metropolitan areas have highly varied effective gross yields. Green figures indicate effective gross yields higher than the 7.7 percent national average, while red figures indicate yields that are lower. HouseCanary's Methodology H ouseCanary has indexed and standardized 40 years of U.S. residential property data to uncover the most accurate current home and rental values. Based on 1 billion transactions and hundreds of macro - economic and local data points, HouseCanary calculated the single-family, nonowner-occupied portion of these homes and rental values to measure effective gross yields. Effective gross yield is defined as the current fair market annualized rent minus estimated property tax, divided by the current fair market home value. Effective gross yield can be computed for individual homes, U.S. census blocks, ZIP codes, and states, and at the national level. Homeowner association fees and insurance costs are not included, as most investors calculate those costs on an individual portfolio level. ∫ ATLANTA, GA: Median Effective Gross Yield by ZIP Code Within MSAs, effective gross yields vary widely from ZIP code to ZIP code. Atlanta's top-performing ZIP codes generate 25.2 percent effective gross yield, while the lowest generate only 4.5 percent. ≥ SEATTLE, WA: Median Effective Gross Yield by ZIP Code Rising home prices and lagging rent appreciation have compressed Seattle's effective gross yield. But with the highest return at 9 percent, there's still opportunity to find an attractive investment, if you know where to look. MDWELL

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