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What is Gross Yield in real estate?


Gross Annual Rent ÷ Current Market Value


Gross Rent is the total rent revenue collected. Current Market Value is the appraised or estimated value based on comparable properties (comps). Gross Yield does not consider expenses or taxes. Also referred to as Gross Rental Yield, this metric is a good starting point for rental property investors to determine the attractiveness of a rental property investment relative to other similar options in a given market.


Example

If you own a single family rental property with $10,000 per year in gross rent (total rent) and the house is worth $100,000, your gross yield is 10%.