Sectors & IndustriesReal EstateREIT - Residential

Best Residential REIT Stocks to Buy Now (2026)

Top residential reit stocks in 2026 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:

Millrose Properties (NYSE:MRP) is the #1 top residential reit stock out of 21 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

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

Millrose Properties (NYSE:MRP) has a Due Diligence Score of 33, which is 5 points higher than the residential reit industry average of 28.

MRP passed 12 out of 38 due diligence checks and has average fundamentals. Millrose Properties has seen its stock return 18.47% over the past year, overperforming other residential reit stocks by 26 percentage points.

Millrose Properties has an average 1 year price target of $39.33, an upside of 40.98% from Millrose Properties's current stock price of $27.90.

Millrose Properties stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Millrose Properties, 66.67% have issued a Strong Buy rating, 33.33% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Apartment Investment & Management Co (NYSE:AIV) 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 Apartment Investment & Management Co (NYSE:AIV) is: Value: C, Growth: D, Momentum: D, Sentiment: C, Safety: C, Financials: C, and AI: C.

Apartment Investment & Management Co (NYSE:AIV) has a Due Diligence Score of 44, which is 16 points higher than the residential reit industry average of 28.

AIV passed 16 out of 38 due diligence checks and has strong fundamentals. Apartment Investment & Management Co has seen its stock lose -47.05% over the past year, underperforming other residential reit stocks by -39 percentage points.

Apartment Investment & Management Co has an average 1 year price target of $10.00, an upside of 147.52% from Apartment Investment & Management Co's current stock price of $4.04.

Apartment Investment & Management Co stock has a consensus Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Apartment Investment & Management Co, 0% have issued a Strong Buy rating, 100% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Equity Residential (NYSE:EQR) 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 Equity Residential (NYSE:EQR) is: Value: C, Growth: D, Momentum: C, Sentiment: C, Safety: C, Financials: C, and AI: C.

Equity Residential (NYSE:EQR) has a Due Diligence Score of 41, which is 13 points higher than the residential reit industry average of 28.

EQR passed 14 out of 38 due diligence checks and has strong fundamentals. Equity Residential has seen its stock lose -3.93% over the past year, overperforming other residential reit stocks by 4 percentage points.

Equity Residential has an average 1 year price target of $68.42, an upside of 13.91% from Equity Residential's current stock price of $60.06.

Equity Residential stock has a consensus Buy recommendation according to Wall Street analysts. Of the 12 analysts covering Equity Residential, 41.67% have issued a Strong Buy rating, 16.67% have issued a Buy, 41.67% 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:

Apartment Investment & Management Co (NYSE:AIV) has an annual dividend yield of 35.89%, which is 28 percentage points higher than the residential reit industry average of 7.49%. Apartment Investment & Management Co's dividend payout is not stable, having dropped more than 10% two times in the last 10 years. Apartment Investment & Management Co's dividend has shown consistent growth over the last 10 years.

Apartment Investment & Management Co's dividend payout ratio of 93.2% indicates that its high dividend yield might not be sustainable for the long-term.

Clipper Realty (NYSE:CLPR) has an annual dividend yield of 12.83%, which is 5 percentage points higher than the residential reit industry average of 7.49%. 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 -27.5% indicates that its high dividend yield might not be sustainable for the long-term.

Millrose Properties (NYSE:MRP) has an annual dividend yield of 10.5%, which is 3 percentage points higher than the residential reit industry average of 7.49%.

Millrose Properties's dividend payout ratio of 104.5% indicates that its high dividend yield might not be sustainable for the long-term.

Residential reit stocks were down -0.11% in the last day, and up 2.27% 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 B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Millrose Properties has a valuation score of 71, which is 47 points higher than the residential reit industry average of 24. It passed 5 out of 7 valuation due diligence checks.

Millrose Properties's stock has gained 18.47% in the past year. It has overperformed other stocks in the residential reit industry by 26 percentage points.

Apartment Investment & Management Co (NYSE:AIV) 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.

Apartment Investment & Management Co has a valuation score of 71, which is 47 points higher than the residential reit industry average of 24. It passed 5 out of 7 valuation due diligence checks.

Apartment Investment & Management Co's stock has dropped -47.05% in the past year. It has underperformed other stocks in the residential reit industry by -39 percentage points.

Avalonbay Communities (NYSE:AVB) 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.

Avalonbay Communities has a valuation score of 43, which is 19 points higher than the residential reit industry average of 24. It passed 3 out of 7 valuation due diligence checks.

Avalonbay Communities's stock has dropped -11.83% in the past year. It has underperformed other stocks in the residential reit industry by -4 percentage points.

57.89% of residential reit stocks rated by analysts are a buy right now. On average, analysts expect residential reit stocks to rise by 17.03% over the next year.

0% of residential reit stocks have a Zen Rating of A (Strong Buy), 5.26% of residential reit stocks are rated B (Buy), 31.58% are rated C (Hold), 31.58% are rated D (Sell), and 31.58% are rated F (Strong Sell).