10 Best Apartment REITs To Buy Now For Income Investors

Up to date on June thirteenth, 2025 by Bob Ciura

Because of the surge of inflation to a 40-year excessive final 12 months, the Federal Reserve raised rates of interest at a fast tempo over the previous two years to chill the economic system.

However with inflation just lately perking up once more and the potential influence of tariffs, some economists now anticipate the Fed to decrease rates of interest as soon as once more.

House REITs have proved resilient to recessions because of the important nature of their enterprise. Additionally they broadly have excessive dividend yields nicely above the S&P 500 Index common.

And, condo REITs would profit from falling rates of interest, which might decrease their price of capital.

You may obtain our full REIT record, together with essential metrics akin to dividend yields and market caps, by clicking on the hyperlink under:

Because of this, condo REITs are fascinating candidates for earnings buyers.

This text will talk about the prospects of the highest 10 condo REITs in our Certain Evaluation Analysis Database.

The next 10 condo REITs are listed by five-year anticipated annual returns, so as of lowest to highest:

Desk of Contents

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House REITs #10: Essex Property Belief (ESS)

Annual Anticipated Returns: 4.4%

Essex Property Belief was based in 1971. The belief invests in West Coast multi-family residential proprieties the place it engages in improvement, redevelopment, administration and acquisition of condo communities and some different choose properties.

Essex has possession pursuits in a number of hundred condo communities consisting of over 60,000 condo houses. The belief has about 1,800 staff and produces roughly $1.6 billion in annual income.

Essex is focused on the West Coast of the U.S., together with cities like Seattle and San Francisco.

Supply: Investor Presentation

On April 29, 2025, Essex Property Belief reported its monetary outcomes for the primary quarter of 2025. Funds from Operations (FFO) per diluted share declined by 13.7% to $3.97.

Nevertheless, Core FFO per diluted share elevated by 3.7% to $3.97, exceeding the midpoint of the corporate’s steerage vary by $0.05. This efficiency was pushed by favorable same-property income progress, co-investment earnings, and curiosity expense.

Similar-property income and web working earnings (NOI) grew by 3.4% and three.3%, respectively, in comparison with the primary quarter of 2024, with sequential enhancements of 1.6% in income and 0.9% in NOI.

Click on right here to obtain our most up-to-date Certain Evaluation report on ESS (preview of web page 1 of three proven under):

House REITs #9: Camden Property Belief (CPT)

Annual Anticipated Returns: 5.7%

Based in 1993 and headquartered in Houston, Texas, Camden Property Belief is likely one of the largest publicly traded multifamily actual property corporations within the U.S.

The REIT owns, manages and develops multifamily condo communities. It presently owns 172 properties that include over 58,000 residences.

On Might 1st, 2025, Camden Property reported its Q1 outcomes for the interval ending March thirty first, 2025. For the quarter, the corporate reported property income of $390.6 million, up barely from $383.1 million in Q1 2024.

Whereas same-property revenues rose 0.8%, same-store occupancy elevated 40 foundation factors to 95.4%. Similar-property bills grew by 0.5% through the interval, whereas same-property web working earnings (NOI) grew 0.9%.

Funds from Operations (FFO) totaled $186.9 million, or $1.70 per share, in comparison with $183.8 million, or $1.67 per share, in Q1 2024. Administration raised their full-year 2025 Core FFO steerage to a variety of $6.63 to $6.93 per share.

Click on right here to obtain our most up-to-date Certain Evaluation report on Camden Property Belief (CPT) (preview of web page 1 of three proven under):

House REITs #8: AvalonBay Communities (AVB)

Annual Anticipated Returns: 6.9%

AvalonBay Communities is a multifamily REIT that owns a portfolio of a number of hundred condo communities and can also be an lively developer of condo communities.

The technique of the REIT entails proudly owning top-tier properties within the main metropolitan areas of New England, New York/New Jersey, Washington D.C., California, and the Pacific Northwest.

Supply: Investor Presentation

On April 30, 2025, AvalonBay Communities reported its monetary outcomes for the primary quarter ended March 31, 2025. The corporate achieved earnings per share (EPS) of $1.66, marking a 36.1% improve from $1.22 in the identical interval of the earlier 12 months.

Funds from operations (FFO) per share rose by 1.8% to $2.78, whereas Core FFO per share elevated by 4.8% to $2.83. Similar-store residential income grew by 3.0% to $693.1 million, and same-store web working earnings (NOI) elevated by 2.6% to $478.3 million, pushed by greater occupancy and favorable expense administration.

Click on right here to obtain our most up-to-date Certain Evaluation report on AvalonBay Communities (AVB) (preview of web page 1 of three proven under):

House REITs #7: Fairness Residential (EQR)

Annual Anticipated Returns: 7.7%

Fairness Residential is likely one of the largest U.S. publicly-traded homeowners and operators of high-quality rental condo properties with a portfolio primarily positioned in city and dense suburban communities.

The properties of the belief are positioned in prosperous areas round Boston, New York, Washington, D.C., Southern California, San Francisco, Seattle, and Denver.

Fairness Residential significantly advantages from the favorable traits of its goal group. Prosperous renters are extremely educated, nicely employed and earn excessive incomes.

Because of this, they pay roughly 20% of their incomes on lease and therefore they aren’t burdened by their lease. Due to their robust earnings potential, the REIT can simply develop its lease charges 12 months after 12 months.

On April 29, 2025, Fairness Residential reported its monetary outcomes for the primary quarter of 2025. The corporate achieved earnings per share (EPS) of $0.67, a 13% lower from the identical interval in 2024, primarily as a result of decrease property sale positive factors and better depreciation bills.

Nevertheless, funds from operations (FFO) per share elevated by 8% to $0.94, and normalized FFO rose by 2.2% to $0.95 per share, surpassing the corporate’s steerage expectations.

Complete revenues for the quarter have been $760.8 million, reflecting a 4.1% year-over-year improve, pushed by energy in markets akin to New York and Washington, D.C., and continued enchancment in San Francisco and Seattle.

Click on right here to obtain our most up-to-date Certain Evaluation report on Fairness Residential (EQR) (preview of web page 1 of three proven under):

House REITs #6: Mid-America House Communities (MAA)

Annual Anticipated Returns: 8.2%

Mid-America House Communities is a REIT that owns, operates and acquires condo communities within the Southeast, Southwest and mid-Atlantic areas of the U.S.

It presently has possession curiosity in ~102,000 condo models throughout 16 states and the District of Columbia.

MAA is targeted on the Sunbelt Area of the U.S., which has exhibited superior inhabitants progress and financial progress in the long term.

Supply: Investor Presentation

In late April, MAA reported (4/30/25) monetary outcomes for the primary quarter of fiscal 2025. Similar-store web working earnings slipped -0.6% over the prior 12 months’s quarter. Core funds from operations (FFO) per share dipped -1%, from $2.22 to $2.20, as a result of greater curiosity expense, however exceeded the analysts’ consensus by $0.02.

MAA has missed the analysts’ FFO estimates solely twice within the final 28 quarters. MAA has decelerated within the final seven quarters as a result of excessive provide of latest residences in its markets however the quantity of latest residences has begun to lose steam, with fewer new residences anticipated subsequent 12 months.

MAA reaffirmed its steerage for core FFO per share of $8.61-$8.93.

Click on right here to obtain our most up-to-date Certain Evaluation report on Mid-America House Communities (MAA) (preview of web page 1 of three proven under):

House REITs #5: American Properties 4 Lease (AMH)

Annual Anticipated Returns: 9.1%

Primarily based in Maryland, American Properties 4 Lease is an internally managed REIT that focuses on buying, growing, renovating, working and leasing single-family houses as rental properties. AMH was fashioned in 2013 and has a market capitalization of $14 billion.

The REIT holds almost 58,000 single-family properties in additional than 30 sub-markets of metropolitan statistical areas in 21 states.

On February twelfth, 2025, AMH introduced it was growing its quarterly dividend 15.4% to $0.30 per share.

On Might 1st, 2025, AMH reported first quarter outcomes. For the quarter, income grew 8.4% to $459.3 million, which was $10 million forward of estimates. FFO of $0.46 in contrast favorably to FFO of $0.43 within the earlier 12 months and was $0.01 higher than anticipated.

For the quarter, AMH had a same-home common occupied day proportion of 95.9%, which was a 20 foundation level lower from the prior 12 months. New leases signed had rental fee progress of 1.4% whereas renewal rental charges elevated 4.5%, resulting in a blended progress fee of three.6%.

Occupied houses of 57,866 in comparison with 56,065 within the first quarter of 2024. Common month-to-month rents per property have been up 4.5% whereas property bills elevated 4.2% to $121.7 million.

Click on right here to obtain our most up-to-date Certain Evaluation report on American Properties 4 Lease (AMH) (preview of web page 1 of three proven under):

House REITs #4: Fairness LifeStyle Properties (ELS)

Annual Anticipated Returns: 9.2%

Fairness LifeStyle Properties, Inc is an actual property funding belief which engages within the possession and operation of lifestyle-oriented properties consisting primarily of manufactured dwelling and leisure car communities.

Fairness LifeStyle Properties operates by way of the next segments: Property Operations; and Residence Gross sales and Leases Operations.

The Property Operations section owns and operates land lease properties. The Residence Gross sales and Leases Operations section purchases, sells, and leases houses on the properties.

In the present day, Fairness LifeStyle Properties, Inc. owns or has a controlling curiosity in additional than 400 communities and resorts in 33 states and British Columbia, with greater than 165,000 websites.

On April twenty first, 2025, Fairness LifeStyle Properties reported first-quarter outcomes. Normalized Funds from Operations (FFO) per share rose 6.7% year-over-year to $0.83, aligning with the midpoint of its steerage. Nevertheless, web earnings per share declined barely to $0.57, a 3.0% lower from the prior 12 months, and reported FFO per share dropped 2.7% to $0.83.

Core property working revenues rose 2.9%, whereas bills elevated by a extra modest 1.5%, leading to a 3.8% enhance in core earnings from property operations (excluding property administration).

Click on right here to obtain our most up-to-date Certain Evaluation report on ELS (preview of web page 1 of three proven under):

House REITs #3: UMH Properties (UMH)

Annual Anticipated Returns: 10.2%

UMH Properties is a REIT that is likely one of the largest manufactured housing landlords within the U.S. It was based in 1968 and presently owns tens of hundreds of developed websites and 135 communities positioned throughout the midwestern and northeastern U.S.

As manufactured houses are cheaper than standard houses, UMH Properties has proved resilient to recessions.

Supply: Investor Presentation

On Might 1, 2025, UMH Properties, Inc. reported its monetary outcomes for the primary quarter ended March 31, 2025. The corporate achieved complete earnings of $61.2 million, marking a 6% improve from the identical interval in 2024. Normalized Funds From Operations (FFO) per diluted share rose by 5% to $0.23, reflecting improved operational efficiency.

Web loss attributable to frequent shareholders narrowed considerably to $271,000, or $0.00 per diluted share, in comparison with a web lack of $6.3 million, or $0.09 per share, within the prior-year quarter. Rental and associated earnings elevated by 8% to $54.6 million, pushed by greater occupancy charges and efficient rental fee implementation.

Similar-property occupancy improved by 70 foundation factors to 87.9%, and rental dwelling occupancy elevated to 94.6% from 94.0% at year-end 2024.

Click on right here to obtain our most up-to-date Certain Evaluation report on UMH Properties (UMH) (preview of web page 1 of three proven under):

House REITs #2: UDR, Inc. (UDR)

Annual Anticipated Returns: 10.7%

UDR, also referred to as United Dominion Realty Belief, is a luxurious condo REIT. The belief owns, operates, acquires, renovates, and develops multifamily condo communities in excessive barrier-to-entry markets within the U.S.

A excessive barrier-to-entry market consists of restricted land for brand spanking new building, sophisticated entitlement processes, low single-family dwelling affordability and powerful employment progress potential.

Nearly all of UDR’s actual property property worth is established in Washington D.C., New York Metropolis, Orange County, California, and San Francisco.

Supply: Investor Presentation

On February fifth, 2025, UDR introduced its 2025 dividend can be $1.72 per share, which represents a 1.2% improve and marks the corporate’s 14th consecutive annual dividend improve.

UDR reported first quarter 2025 outcomes on April thirtieth, 2025. The corporate’s adjusted funds from operations was flat year-over-year at $0.61 per share.

The quarterly AFFO payout ratio of 70% is comparatively protected for a REIT that should pay out nearly all of its earnings to shareholders. Bodily occupancy of the true property portfolio was flat in comparison with the prior 12 months interval at 97.2%.

The belief maintained its steerage for 2025, forecasting AFFO per share of $2.45 to $2.55, for a midpoint of $2.50. The corporate additionally anticipates 1.25% to three.25% progress in same-store income, 2.75% to 4.25% progress in same-store bills, and 0.5% to three.0% progress of same-store web working earnings over 2024.

Click on right here to obtain our most up-to-date Certain Evaluation report on UDR (preview of web page 1 of three proven under):

House REITs #1: American Belongings Belief (AAT)

Annual Anticipated Returns: 15.6%

American Belongings Belief is a REIT that was fashioned in 2011 as a successor of American Belongings, a privately held firm based in 1967.

AAT has nice expertise in buying, enhancing and growing workplace, retail and residential properties all through the U.S., primarily in Southern California, Northern California, Oregon, Washington and Hawaii.

Its workplace portfolio and its retail portfolio comprise of roughly 4.0 million and three.1 million sq. toes, respectively. AAT additionally owns greater than 2,000 multifamily models.

Supply: Investor Presentation

In late April, AAT reported (4/29/25) monetary outcomes for the primary quarter of fiscal 2025. Similar-store web working earnings grew 3% however funds from operations (FFO) per share dipped -10% over the prior 12 months’s quarter as a result of litigation earnings obtained within the prior 12 months’s interval and better curiosity expense.

As a result of excessive curiosity expense, AAT reaffirmed its weak steerage for 2025, anticipating FFO per share of $1.87-$2.01.

Click on right here to obtain our most up-to-date Certain Evaluation report on American Belongings Belief (AAT) (preview of web page 1 of three proven under):

Closing Ideas

Many condo REITs move underneath the radar of nearly all of buyers as a result of their mundane enterprise mannequin.

Nevertheless, a few of these REITs have supplied exceptionally excessive returns to their shareholders. As well as, condo REITs have proved resilient to recessions, because the demand for housing stays robust even throughout tough financial intervals.

The above 10 condo REITs are fascinating candidates for the portfolios of income-oriented buyers, particularly given the growing threat of an upcoming recession.

If you’re serious about discovering high-quality dividend progress shares and/or different high-yield securities and earnings securities, the next Certain Dividend sources can be helpful:

Excessive-Yield Particular person Safety Analysis

Different Certain Dividend Assets