What are the largest residential REITs?

The top three residential REITs by market cap are: AvalonBay Communities (NYSE: AVB) at $27.204 billion, Equity Residential (NYSE: EQR) at $26.552 billion, and Essex Property Trust (NYSE: ESS) at $20.549 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 Jul 16, 2026 at 3:14 PM EST | Fact-checked by Parker Hicks

Key Points

Invest in residential REITs for stable, long-term growth opportunities.
Top picks include Camden Property Trust, Mid-America Apartment Communities.
UMH Properties boosts dividend, focusing on manufactured housing rental.

Residential REITs are real estate investment trusts that invest in residential properties, like apartment complexes or 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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Three 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)	$11.2 billion	3.80%
Mid-America Apartment Communities (NYSE:MAA)	$15.5 billion	4.58%
UMH Properties (NYSE:UMH)	$1.3 billion	5.87%

Data as of Aug 5, 2026. Showing 3 of 3 total entries.

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1. Camden Property Trust

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NYSE: CPT

Camden Property Trust

Today's Change

(0.28%) $0.31

Current Price

$111.03

Key Data Points

Market Cap

$11B

Day's Range

$109.22 - $111.22

52wk Range

$96.53 - $119.81

Volume

1.1M

Avg Vol

1.2M

Gross Margin

22.55%

Dividend Yield

3.80%

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Despite being a part of a highly competitive apartment market, Camden Property Trust (CPT +0.28%) reported an occupancy rate of 95.1% for Q1 2026. This is in part due to Camden's geographical mix, which includes 171 communities in California, 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.

2. Mid-America Apartment Communities, Inc.

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NYSE: MAA

Mid-America Apartment Communities

Today's Change

(-0.20%) $-0.26

Current Price

$133.21

Key Data Points

Market Cap

$15B

Day's Range

$131.45 - $133.66

52wk Range

$120.30 - $146.41

Volume

959.9K

Avg Vol

Gross Margin

29.51%

Dividend Yield

4.58%

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Besides having a huge and diverse portfolio of just under 103,000 units, Mid-America Apartment Communities (MAA -0.20%) is positioned well to grow 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 $17.6 billion in gross real estate assets are encumbered by just $6.3 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.

3. UMH Properties

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NYSE: UMH

UMH Properties

Today's Change

(0.33%) $0.05

Current Price

$15.32

Key Data Points

Market Cap

$1.3B

Day's Range

$15.11 - $15.36

52wk Range

$13.93 - $16.98

Volume

741.4K

Avg Vol

651K

Gross Margin

29.26%

Dividend Yield

5.87%

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Although UMH (UMH +0.33%) has had some rough spots in its history, the increased interest in single-family ownership and rentals driven by the COVID-19 pandemic has 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 11 states, and has joint interests in two communities in Florida and one in Pennsylvania. 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 invest in 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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Risks of investing in residential REITs

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.

1. 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.

2. 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.

3. 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.

4. Climbing 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.

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Categories of residential REITs

All residential REITs specialize in providing housing, but there are differences. 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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A more stable, hands-off investment

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.

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

Three 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 invest in residential REITs

Risks of investing in residential REITs

1. Consider the housing market

2. Over-leveraged REITs can be risky

3. Oversupply can hurt occupancy and rent rates

4. Climbing interest rates can create challenges

Categories of residential REITs

Key metrics to evaluate residential REITs

A more stable, hands-off investment

Related investing topics

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

About the Author

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Premium Investing Services

NYSE: CPT

Key Data Points

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?

Do REITs have high returns?

Do residential REITs do well in a recession?

What is the outlook for residential REITs?

What is the minimum investment for a residential REIT?

How are residential REITs taxed?

How are residential REITs different from commercial REITs?

1. Camden Property Trust

How to invest in residential REITs

Understanding residential REITs

Advantages of investing in residential REITs

1. Residential REITs tend to be recession-proof

2. The demand is increasing

3. Fewer people are able to buy homes

Risks of investing in residential REITs

1. Consider the housing market

2. Over-leveraged REITs can be risky

3. Oversupply can hurt occupancy and rent rates

4. Climbing interest rates can create challenges

Categories of residential REITs

Key metrics to evaluate residential REITs

A more stable, hands-off investment

Related investing topics

Three top residential REITs to buy in 2026

NYSE: MAA

Key Data Points

NYSE: UMH

Key Data Points

3. UMH Properties

2. Mid-America Apartment Communities, Inc.