What are the largest residential REITs?

The top three residential REITs by market cap are: Vivmark Residential (NYSE: VMRK) at $47.301 billion, Essex Property Trust (NYSE: ESS) at $18.809 billion, and Invitation Homes (NYSE: INVH) at $15.64 billion.

Do REITs have high returns?

REITs can have very high returns, which are often driven by their dividends. In fact, we've found that REITs have outperformed the S&P 500 over 20-, 25-, 30-, 40-, and 52-year periods.

Do residential REITs do well in a recession?

Residential REITs can do well in a recession, since people still need housing regardless of economic headwinds. However, it's no guarantee, since every recession is different.

What is the outlook for residential REITs?

Residential REITs as a whole perform very well over the long term, but the short-term outlook could be challenging. Oversupply is a stumbling block, but supply is expected to be absorbed in many areas by the end of 2025.

What is the minimum investment for a residential REIT?

Like any stock, you can get started with just a few dollars. Many residential REITs are already fairly inexpensive per share, often coming in under $50, and due to the rise of fractional share trading, you can simply invest the amount of money you have available instead of being forced to buy whole shares.

How are residential REITs taxed?

Ordinary REIT dividends are taxed as regular income and not considered qualified dividends. However, if you have a more complex scenario, such as a capital gains distribution, your REIT will send you a notification so you can plan accordingly. If you have questions about how REIT dividends affect your particular tax situation, please consult your favorite tax professional.

How are residential REITs different from commercial REITs?

Residential REITs focus solely on homes, whether those are apartments, manufactured housing, or stick-built homes. Commercial REITs, on the other hand, focus on properties used by businesses, such as manufacturing facilities, warehouses, and offices.

Best Residential REITs for 2026 and How to Invest

Residential REITs are a great investment option for investors looking for stable income over the long term. Choosing the right residential REITs means picking properties with growth potential in stable real estate markets.

By Kristi Waterworth – Updated Sep 29, 2026 at 1:35 PM EST | Fact-checked by Frank Bass

Key Points

Residential REITs offer stability as long-term investments in essential housing.
Camden Property Trust maintains a high occupancy rate of 95.5% as of Q2 2026.
Mid-America Apartment Communities boasts a strong financial position with $17.8 billion in assets.

Residential REITs are real estate investment trusts that invest in residential properties, such as apartment complexes and mobile home parks. For investors looking for more long-term investments that are "steady as she goes," residential REITs can provide both stability and growth. Because these shares represent very real, viable real estate investments, they can feel much more secure than investing in growth stocks that may start out with fewer assets and more debt. Residential REITs aren't sexy, but they represent vital property types society can't function without.

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An infographic outlining the advantages and risks of investing in residential real estate investment trusts (REITs). — Image source: The Motley Fool.

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3 top residential REITs to buy in 2026

As with all classes of REITs, there are more than a few really good choices in the residential space. Companies that have studied their markets and are prepared for hiccups make great long-term investments.

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Dividend yield
Camden Property Trust (NYSE:CPT)	$9.7 billion	4.38%
Mid-America Apartment Communities (NYSE:MAA)	$13.5 billion	5.25%
UMH Properties (NYSE:UMH)	$1.3 billion	5.87%

Data as of Oct 2, 2026. Showing 3 of 3 total entries.

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1. Camden Property Trust

NYSE: CPT

Camden Property Trust

Premium Feature

Moneyball Superscore

67/100

Today's Change

(-0.68%) $-0.66

Current Price

$95.96

Key Data Points

Market Cap

$9.7B

Day's Range

$95.45 - $97.55

52wk Range

$95.45 - $119.81

Volume

1.1M

Avg Vol

Gross Margin

22.55%

Dividend Yield

4.38%

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Despite being a part of a highly competitive apartment market, Camden Property Trust (CPT -0.68%) reported an occupancy rate of 95.5% for Q2 2026. This is in part due to Camden's geographical mix, which includes 165 communities in Arizona, Colorado, Texas, Tennessee, Georgia, Florida, North Carolina, and Virginia. Many of Camden Property Trust's properties also include ground-floor retail, office space, or mixed-use space, creating true communities where people can work, play, and live.

Camden owns a mix of Class A and Class B units across both urban and suburban markets, providing some healthy property diversity.

2. Mid-America Apartment Communities, Inc.

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NYSE: MAA

Mid-America Apartment Communities

Premium Feature

Moneyball Superscore

62/100

Today's Change

(-0.95%) $-1.11

Current Price

$115.27

Key Data Points

Market Cap

$14B

Day's Range

$114.47 - $117.37

52wk Range

$114.47 - $144.41

Volume

1.7M

Avg Vol

1.1M

Gross Margin

29.51%

Dividend Yield

5.25%

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Besides having a large and diverse portfolio of about 105,000 apartment units, Mid-America Apartment Communities (MAA -0.95%) is well-positioned to continue thriving for the long term. Rather than focusing primarily on building, it has improved its holdings by purchasing and remodeling units that appeal to a middle-income demographic. Its $17.8 billion in gross real estate assets are encumbered by just $6.4 billion in liabilities, giving the company some wiggle room for property improvements and more money going straight into investors' pockets rather than into interest payments.

Mid-America Apartment Communities has paid a steadily growing dividend since 1994, and managed to maintain growth despite the COVID-19 pandemic, which was not a given in the segment.

3. UMH Properties

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NYSE: UMH

UMH Properties

Premium Feature

Moneyball Superscore

66/100

Today's Change

(0.52%) $0.08

Current Price

$15.41

Key Data Points

Market Cap

$1.3B

Day's Range

$15.37 - $15.58

52wk Range

$13.93 - $16.77

Volume

543.5K

Avg Vol

632.2K

Gross Margin

28.93%

Dividend Yield

5.87%

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Although UMH (UMH +0.52%) has had some rough spots in its history, the rising costs of renting or owning traditional single-family residential homes have given it a significant boost. The REIT increased dividends by 5.5% in 2021 -- the first time it raised dividends since 2009 -- and has hiked its dividend by 25% since 2020.

UMH is the largest owner of manufactured housing communities in the U.S., holding approximately 27,100 developed home sites across 145 communities. The company recently opened its own Opportunity Zone fund, as well, giving it more ways to help communities and reduce its tax burden.

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How to buy residential REITs

Here's a step-by-step guide on how to invest in residential REITs:

Open your brokerage app: Log in to your brokerage account where you handle your investments.
Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in residential REITs

Real estate investing through residential REITs is great for anyone looking for a very dependable, stand-alone investment or for balancing riskier investments in their strategy. There are several good reasons to choose residential REITs:

Residential REITs tend to be recession-proof. Because everyone needs a place to live, residential REITs tend to perform well even in the worst of times, such as a recession. Office workers might not always need offices, and industrial spaces may experience contraction, but people always need places to live, no matter where they're located or how much money they make. That's why residential REITs are often seen as a recession-proof investment.
The demand is increasing. The population is growing, and more people are choosing to live alone, putting significant pressure on the rental market. There are more households in need of rentals, and good residential REITs are happy to provide them. As demand increases, so do rents, generating reliable income for REIT holders.
Fewer people are able to buy homes. Years of inventory shortages have driven home purchase prices through the roof, making it harder for people to buy their own place. Because of larger down payments and a tougher loan qualification process for most potential buyers, more people are choosing to rent for longer periods as they work on their credit and build up their savings.

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Although residential REITs tend to be very stable and dependable, individual REITs are far from guaranteed winners. There are still plenty of risks to be aware of, especially if you're looking to hold for the long term.

Consider the housing market. There's always a chance that a hot housing market today will be cold tomorrow. Economic factors such as the collapse of a large local employer can quickly change the profile of workers who rent from a residential REIT. When choosing a residential REIT, look for properties that have room to move if local incomes shrink or housing values fall.
Over-leveraged REITs can be risky. Residential REITs often have to take on considerable debt at the outset or when working on a new project or a large acquisition. If the debt creates an excessive financial burden, it can destabilize the business. A residential REIT shouldn't be essentially living paycheck to paycheck and unable to absorb a major financial blow, whether it's new or well-established.
Oversupply can hurt occupancy and rent rates. In a hot market, it's tempting for a residential REIT to go all out. It's one thing to juggle a portfolio that's reasonably balanced between several markets or several types of rental property, but it's quite another to put most of your money in one place. Oversupply is a residential REIT killer, especially for those that are over-leveraged.
Rising interest rates can create challenges. Residential REITs often carry debt. Loans allow them to upgrade properties, make new acquisitions, and speculate without taking a big bite out of capital funds. When interest rates are low, the cost of debt is nearly zero, making it easier to make upgrades that allow owners to raise rents or improve tenants' lives. When debt gets costly, however, all kinds of dominoes may start to fall. For example, not being able to affordably leverage improvements could mean some properties fall from Class A to Class B, or even from Class B to Class C, which may decrease the rent each unit brings in.

Methodology: How these stocks were chosen

The stocks in this article were chosen for their consistent performance, longevity, and ability to deliver dividends over time. They largely represent housing that the average person can afford in their markets, making them stronger during tough economic times, when renters may choose cheaper options to remain solvent.

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Understanding residential REITs

There are many different types of real estate investment trusts (REITs), but residential REITs are among the most popular. It may be because they're familiar, in a way, and represent something everyone needs: a home. Residential REITs buy and hold properties and rent them to tenants under gross leases. Sometimes they sell properties to upgrade others or make new, similar acquisitions, but it's always with the goal of improving the rate of return on their investments.

Residential REITs can hold virtually any collection of residential rental property, from hundreds of single-family homes to mobile home parks, boutique apartment buildings, or huge multifamily complexes. Generally, REITs buy and hold properties that are too expensive for most investors to purchase individually, putting residential investment property within reach of many more people.

Categories of residential REITs

All residential REITs specialize in providing housing, but they differ. Here are the main types of specialties in residential REITs you may encounter:

Apartments. These REITs buy, sell, maintain, and lease apartments, usually in large communities. Some specialize in new-construction apartments with many high-end amenities, while others rehab older apartments to provide more affordable housing.

Student housing. Student housing REITs own both dorms and apartments, often set up with separate leases for each student tenant. They may lease just for the academic year or year-round.

Manufactured homes. Manufactured home REITs own and operate parks where manufactured homes can be legally placed, then charge rent for the home, the lot on which it sits, or both. Owners of manufactured homes can rent just the plot of land on which their units sit.

Single-family homes. Single-family home REITs own individual homes, often in clusters, or designed as built-to-rent (BTR) units. These BTR units were never intended for the homebuyer market and are often titled as a group. They provide additional amenities, much like apartment complexes, within their communities.

Key metrics to evaluate residential REITs

There are many key metrics you can use to evaluate residential REITs and compare them to one another. Metrics like funds from operations (FFO)/share can tell you more about the cash flow from each REIT in a way you can compare easily across companies. Occupancy rates are important for measuring a REIT's overall demand and its long-term growth trajectory. The debt-to-equity ratio helps you see whether a company is overleveraged, and the dividend yield can help you decide whether it's time to invest or if you'd rather choose a company with a higher or lower dividend yield.

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Should you invest in residential REITs?

Investing in residential REITs can offer the stability of real estate investing, especially if you're not particularly interested in maintenance or tenant management. Instead of doing the daily hands-on, you're letting your money work for you while someone else handles professional property management and all the other headaches associated with being a landlord.

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Residential REITs FAQ

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

Kristi Waterworth has positions in Mid-America Apartment Communities and UMH Properties. The Motley Fool has positions in and recommends Mid-America Apartment Communities. The Motley Fool recommends UMH Properties. The Motley Fool has a disclosure policy.

3 Best Residential REITs for 2026 and How to Invest

Residential REITs are a great investment option for investors looking for stable income over the long term. Choosing the right residential REITs means picking properties with growth potential in stable real estate markets.

Key Points

3 top residential REITs to buy in 2026

1. Camden Property Trust

NYSE: CPT

Key Data Points

2. Mid-America Apartment Communities, Inc.

NYSE: MAA

Key Data Points

3. UMH Properties

NYSE: UMH

Key Data Points

How to buy residential REITs

Benefits and risks of investing in residential REITs

Methodology: How these stocks were chosen

Understanding residential REITs

Categories of residential REITs

Key metrics to evaluate residential REITs

Should you invest in residential REITs?

Related investing topics

3 Best Data Center REITs for 2026 and How to Invest

5 Best Housing Stocks for 2026 and How to Invest

3 Best Mortgage REITs for 2026 and How to Invest

Best REIT ETFs for 2026 and How to Invest

Residential REITs FAQ

What are the largest residential REITs?

What are the largest residential REITs?

Do REITs have high returns?

Do REITs have high returns?

Do residential REITs do well in a recession?

Do residential REITs do well in a recession?

What is the outlook for residential REITs?

What is the outlook for residential REITs?

What is the minimum investment for a residential REIT?

What is the minimum investment for a residential REIT?

How are residential REITs taxed?

How are residential REITs taxed?

How are residential REITs different from commercial REITs?

How are residential REITs different from commercial REITs?

About the Author

Read Next

Stocks Mentioned

Motley Fool Stock Advisor’s Latest Pick

Premium Investing Services

3 top residential REITs to buy in 2026

NYSE: MAA

Key Data Points

3. UMH Properties

NYSE: UMH

Key Data Points

How to buy residential REITs

Benefits and risks of investing in residential REITs

Methodology: How these stocks were chosen

Understanding residential REITs

Categories of residential REITs

Key metrics to evaluate residential REITs

Should you invest in residential REITs?

3 Best Data Center REITs for 2026 and How to Invest

5 Best Housing Stocks for 2026 and How to Invest

3 Best Mortgage REITs for 2026 and How to Invest

Best REIT ETFs for 2026 and How to Invest

Residential REITs FAQ

What are the largest residential REITs?

What are the largest residential REITs?

Do REITs have high returns?

Do REITs have high returns?

Do residential REITs do well in a recession?

Do residential REITs do well in a recession?

What is the outlook for residential REITs?

What is the outlook for residential REITs?

What is the minimum investment for a residential REIT?

What is the minimum investment for a residential REIT?

How are residential REITs taxed?

How are residential REITs taxed?

How are residential REITs different from commercial REITs?

How are residential REITs different from commercial REITs?

2. Mid-America Apartment Communities, Inc.

NYSE: CPT

Key Data Points