Sectors & IndustriesReal EstateREIT - Residential

Best Residential REIT Stocks to Buy Now (2025)

Top residential reit stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best residential reit stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best residential reit stocks to buy right now are:

Udr (NYSE:UDR) is the #1 top residential reit stock out of 21 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Udr (NYSE:UDR) is: Value: D, Growth: C, Momentum: C, Sentiment: B, Safety: D, Financials: C, and AI: C.

Udr (NYSE:UDR) has a Due Diligence Score of 25, which is -1 points lower than the residential reit industry average of 26.

UDR passed 9 out of 38 due diligence checks and has weak fundamentals. Udr has seen its stock return 9.82% over the past year, overperforming other residential reit stocks by 3 percentage points.

Udr has an average 1 year price target of $46.00, an upside of 9.45% from Udr's current stock price of $42.03.

Udr stock has a consensus Buy recommendation according to Wall Street analysts. Of the 7 analysts covering Udr, 28.57% have issued a Strong Buy rating, 0% have issued a Buy, 71.43% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Millrose Properties (NYSE:MRP) is the #2 top residential reit stock out of 21 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Millrose Properties (NYSE:MRP) is: Value: C, Growth: C, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Millrose Properties (NYSE:MRP) has a Due Diligence Score of 10, which is -16 points lower than the residential reit industry average of 26.

MRP passed 3 out of 38 due diligence checks and has weak fundamentals.

Millrose Properties has an average 1 year price target of $27.50, an upside of 5.69% from Millrose Properties's current stock price of $26.02.

Millrose Properties stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 2 analysts covering Millrose Properties, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Invitation Homes (NYSE:INVH) is the #3 top residential reit stock out of 21 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Invitation Homes (NYSE:INVH) is: Value: C, Growth: C, Momentum: C, Sentiment: B, Safety: C, Financials: C, and AI: C.

Invitation Homes (NYSE:INVH) has a Due Diligence Score of 36, which is 10 points higher than the residential reit industry average of 26.

INVH passed 13 out of 38 due diligence checks and has average fundamentals. Invitation Homes has seen its stock lose -0.37% over the past year, underperforming other residential reit stocks by -7 percentage points.

Invitation Homes has an average 1 year price target of $37.40, an upside of 8.19% from Invitation Homes's current stock price of $34.57.

Invitation Homes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Invitation Homes, 20% have issued a Strong Buy rating, 40% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 20 residential reit stocks that have issued dividends in the past year, the 3 residential reit stocks with the highest dividend yields are:

Clipper Realty (NYSE:CLPR) has an annual dividend yield of 9.34%, which is 6 percentage points higher than the residential reit industry average of 3.46%. Clipper Realty's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Clipper Realty's dividend has shown consistent growth over the last 10 years.

Clipper Realty's dividend payout ratio of -152% indicates that its high dividend yield might not be sustainable for the long-term.

Brt Apartments (NYSE:BRT) has an annual dividend yield of 6.5%, which is 3 percentage points higher than the residential reit industry average of 3.46%. Brt Apartments's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Brt Apartments's dividend has shown consistent growth over the last 10 years.

Brt Apartments's dividend payout ratio of -192.3% indicates that its high dividend yield might not be sustainable for the long-term.

Nexpoint Residential Trust (NYSE:NXRT) has an annual dividend yield of 5.24%, which is 2 percentage points higher than the residential reit industry average of 3.46%. Nexpoint Residential Trust's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Nexpoint Residential Trust's dividend has shown consistent growth over the last 10 years.

Nexpoint Residential Trust's dividend payout ratio of -153.1% indicates that its high dividend yield might not be sustainable for the long-term.

Residential reit stocks were down -1.13% in the last day, and down -1.05% over the last week.

We couldn't find a catalyst for why residential reit stocks are down.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued residential reit stocks right now are:

Millrose Properties (NYSE:MRP) is the most undervalued residential reit stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Millrose Properties has a valuation score of 14, which is -1 points higher than the residential reit industry average of 15. It passed 1 out of 7 valuation due diligence checks.

Avalonbay Communities (NYSE:AVB) is the second most undervalued residential reit stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Avalonbay Communities has a valuation score of 29, which is 14 points higher than the residential reit industry average of 15. It passed 2 out of 7 valuation due diligence checks.

Avalonbay Communities's stock has gained 4.9% in the past year. It has underperformed other stocks in the residential reit industry by -2 percentage points.

Equity Lifestyle Properties (NYSE:ELS) is the third most undervalued residential reit stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Equity Lifestyle Properties has a valuation score of 14, which is -1 points higher than the residential reit industry average of 15. It passed 1 out of 7 valuation due diligence checks.

Equity Lifestyle Properties's stock has gained 1.59% in the past year. It has underperformed other stocks in the residential reit industry by -5 percentage points.

72.22% of residential reit stocks rated by analysts are a buy right now. On average, analysts expect residential reit stocks to rise by 10.88% over the next year.

0% of residential reit stocks have a Zen Rating of A (Strong Buy), 0% of residential reit stocks are rated B (Buy), 85% are rated C (Hold), 15% are rated D (Sell), and 0% are rated F (Strong Sell).