The Math Behind Buy and Rent

Thanks to lower home prices and higher rents, the return one can reap by buying and renting out a home has risen to a level last seen well before the housing boom. Economists at Goldman Sachs estimate that the average U.S. rental yield stands at about 6.3 percent, up from 4.8 percent at the peak of the boom and higher than 2000 or even 1990.