I can't say I am very AI savvy but maybe you haven't had a vacancy in awhile and what to know what your local market rent is.

I think this is a great way to use AI. Just go to chatgpt and type in " use data from zillow.com for your town, looking at single family houses for rent and analysis the price range per bedroom and bath, show the range and the average and then also calculate a cost per sq foot range and average". or something like that to get it going.

The results look something like this

I pulled the currently listed single-family rentals from Zillow's AXXXX house-rental inventory and analyzed the rental rates by bedroom count, bathroom count, and available square-footage data. The Zillow listing page currently shows 23 house rentals, although not every listing includes square footage.

Rent by Bedroom Count

Bedrooms Listings Rent Range Average Rent

1 BR 1 $1,099 $1,099

2 BR 8 $995 – $1,495 $1,191/mo

3 BR 11 $1,195 – $3,800 $1,638/mo

4 BR 2 $1,975 – $1,990 $1,983/mo

Studio 1 $2,600 $2,600

Source listings include current Zillow rentals in AXXXXX.

Bedroom Premiums

Moving from 2 BR ’ 3 BR adds roughly $447/month

Moving from 3 BR ’ 4 BR adds roughly $345/month

Typical market appears centered around:

2 BR: ~$1,200

3 BR: ~$1,600

4 BR: ~$2,000

Rent by Bathroom Count

Bathrooms Listings Rent Range Average Rent

1 Bath 5 $1,050 – $1,350 $1,158/mo

1.5 Bath 1 $1,200 $1,200

2 Bath 12 $995 – $3,800 $1,741/mo

2.5 Bath 1 $1,695 $1,695

3 Bath 1 $1,990 $1,990

Bathroom Impact

Properties with 2 bathrooms command a substantial premium versus 1-bath homes, largely because most 2-bath rentals are newer and larger homes.

Cost Per Square Foot

Only 9 of the active Zillow listings included square footage data, so this analysis is based on those listings.

Metric Value

Lowest Rent/SF $0.58/sf

Highest Rent/SF $2.05/sf

Average Rent/SF $1.20/sf

Rent/SF Examples

Rent Size Rent/SF

$2,600 4,500 sf $0.58

$1,975 2,150 sf $0.92

$1,250 1,248 sf $1.00

$1,350 1,241 sf $1.09

$1,990 1,826 sf $1.09

$1,599 1,370 sf $1.17

$1,099 800 sf $1.37

$1,645 1,100 sf $1.50

$3,800 1,854 sf $2.05

Market Takeaways

Based on the active Zillow inventory:

Most common rental type: 3-bedroom / 2-bath houses.

Typical family-house rent: approximately $1,500–$1,700/month.

Typical rent per square foot: approximately $1.00–$1.30/sf.

Listings above $2.00/sf are clear outliers and likely reflect premium finishes, unique properties, or short supply.

A reasonable underwriting assumption for a standard AXXXX single-family rental today would be:

2 BR: $1,150–$1,250/month

3 BR: $1,450–$1,700/month

4 BR: $1,900–$2,000/month

Market rent factor: roughly $1.20/sf

If you'd like, I can also build a more investor-focused analysis showing expected rent by square footage bands (under 1,200 sf, 1,200–1,800 sf, 1,800+ sf) and estimate cap rates for Asheboro rental acquisitions.

If nothing else it is a fun 5 minute activity.

HAPPY TUESDAY! Only 1 day until I see some of you at the convention.

More fun with AI

type in something like "build an analysis that is more investor focused which shows the highest potential return for the investment"

which returns something like this

Using the Zillow rental inventory we analyzed plus Zillow's current Asheboro market data, we can estimate which property types are likely to produce the strongest returns for an investor. The average Asheboro home value is about $242k, while average market rent is about $995, but single-family rentals are achieving substantially higher rents than the overall market average.

Investor Scorecard

Property Type Typical Rent Estimated Purchase Price Gross Rent Yield

2BR / 1BA (900-1,200 sf) $1,150-$1,250 $140k-$190k 7.9%-10.7%

3BR / 2BA (1,200-1,700 sf) $1,450-$1,700 $190k-$260k 6.7%-10.7%

4BR / 2BA (1,800-2,300 sf) $1,900-$2,000 $260k-$340k 6.7%-8.8%

Premium / Luxury Rentals $2,600-$3,800 $400k-$600k+ 5.2%-7.8%

Gross Rent Yield = Annual Rent ÷ Purchase Price

Highest ROI Segment

1. Small 2BR Houses

These appear to offer the strongest return profile.

Typical example:

Purchase: $160,000

Rent: $1,200/mo

Annual Rent: $14,400

Gross Yield: 9.0%

Assuming:

8% vacancy/turnover

35% operating expenses

self-management

Estimated cap rate:

5.5%–7.0%

This is likely the sweet spot in AXXXXXo.

2. Entry-Level 3BR / 2BA Homes

Typical example:

Purchase: $220,000

Rent: $1,600/mo

Annual Rent: $19,200

Gross Yield: 8.7%

Cap rate estimate:

5.0%–6.5%

Benefits:

Largest renter pool

Families stay longer

Lower turnover risk

This is generally the safest long-term strategy.

3. Luxury Rentals

Example:

Purchase: $500,000

Rent: $2,600/mo

Annual Rent: $31,200

Gross Yield: 6.2%

Cap rate:

3.5%–5.0%

These properties produce weaker cash flow and depend more heavily on appreciation.

Rent per Square Foot Analysis

From the active Zillow inventory:

Size Typical Rent/SF

Under 1,200 sf $1.25-$1.50/sf

1,200-1,800 sf $1.00-$1.25/sf

1,800-2,500 sf $0.85-$1.10/sf

2,500+ sf $0.60-$0.95/sf

The data shows a clear pattern:

Smaller houses command the highest rent per square foot.

I provide everyone with a copy of HUDs Fair Market Rental rates when they look at my places.

Bonanza, does that weed out the MTR and STR market?

I have not tried, but I will. I know that there are a few places that have astronomical rents around here. My guess is they are either set up as STR but not listed as such or someone is putting in a high asking rent to make the other rents look affordable.

I call it the Ebay scheme as I have seen people list items for a lot and then list the same items for less so it looks like a bargain.

I have been considering diving into Ai to find comps for my places, just out of curiosity. I can do the same for rents now.

That should be a pretty good way to use AI because it is pulling from data that is more widely used.

6x6 - so yeah that jives with what I already know. Rent for 3/2 SFH is generally $1 to $1.2 a sq ft. Smaller houses are generally more profitable since the acquisition costs are lower. I try to keep my rent at or below market rates. My pricing depends on whether or not it has a fenced yard, a garage, a carport, a basement, an out building or some other amenity that I consider an upgrade. I generally start around a $1 a sq ft and adjust slightly.

Duplexes in my area are much more profitable. A 1500 sq ft 3/2 SFH would rent for $1595. A 1600 sq ft duplex would rent for $2000 total.

So if I was going to be focused on a purchase I'd be looking more at a duplex.

Just got to analyze your market and see where the sweet spot is for price and rents.

I love my dupes.

As long as you have good rules set in stone to keep like minded people in them you are golden.

Great ideas, I do look at Zillow data for each of our rentals comps but I haven't tried getting specific market data from AI.

I love the cashflow with side-by-side Duplexes too. But I found out this year they are harder to SELL than my single family homes have been.

I learned Duplexes have a smaller investor-buyer-pool cause in my area an updated one like mine costs about $130k more than a single family home, and not everyone has the courage to be a Landlord.