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 +28.50% 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:

Invitation Homes (NYSE:INVH) is the #1 top residential reit stock out of 19 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

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

Invitation Homes (NYSE:INVH) has a Due Diligence Score of 37, which is 13 points higher than the residential reit industry average of 24.

INVH passed 12 out of 38 due diligence checks and has average fundamentals. Invitation Homes has seen its stock lose -4.74% over the past year, overperforming other residential reit stocks by 1 percentage points.

Invitation Homes has an average 1 year price target of $31.54, an upside of 14.52% from Invitation Homes's current stock price of $27.54.

Invitation Homes stock has a consensus Buy recommendation according to Wall Street analysts. Of the 13 analysts covering Invitation Homes, 30.77% have issued a Strong Buy rating, 30.77% have issued a Buy, 30.77% have issued a hold, while 7.69% 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 19 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

The Component Grade breakdown for Apartment Investment & Management Co (NYSE:AIV) is: Value: B, 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 6, which is -18 points lower than the residential reit industry average of 24.

AIV passed 2 out of 38 due diligence checks and has weak fundamentals. Apartment Investment & Management Co has seen its stock lose -71.35% over the past year, underperforming other residential reit stocks by -66 percentage points.

Millrose Properties (NYSE:MRP) is the #3 top residential reit stock out of 19 with a Zen Rating of C. Stocks with a rating of C have had an average return of +5.11% per year. Learn more.

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

Millrose Properties (NYSE:MRP) has a Due Diligence Score of 43, which is 19 points higher than the residential reit industry average of 24.

MRP passed 17 out of 38 due diligence checks and has strong fundamentals. Millrose Properties has seen its stock lose -27.26% over the past year, underperforming other residential reit stocks by -22 percentage points.

Millrose Properties stock has a consensus Hold recommendation according to Wall Street analysts. Of the 1 analyst covering Millrose Properties, 0% have issued a Strong Buy rating, 0% have issued a Buy, 100% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 18 residential reit stocks that have issued dividends in the past year, the 3 residential reit stocks with the highest dividend yields are:

Elme Communities (NYSE:ELME) has an annual dividend yield of 98.31%, which is 88 percentage points higher than the residential reit industry average of 10.62%. Elme Communities's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Elme Communities's dividend has shown consistent growth over the last 10 years.

Millrose Properties (NYSE:MRP) has an annual dividend yield of 12.87%, which is 2 percentage points higher than the residential reit industry average of 10.62%.

Millrose Properties's dividend payout ratio of 104.9% indicates that its high dividend yield might not be sustainable for the long-term.

Clipper Realty (NYSE:CLPR) has an annual dividend yield of 12.54%, which is 2 percentage points higher than the residential reit industry average of 10.62%. 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 -41% indicates that its high dividend yield might not be sustainable for the long-term.

Residential reit stocks were down -0.81% in the last day, and up 2.51% 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 A. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Millrose Properties has a valuation score of 57, which is 38 points higher than the residential reit industry average of 19. It passed 4 out of 7 valuation due diligence checks.

Millrose Properties's stock has dropped -27.26% in the past year. It has underperformed other stocks in the residential reit industry by -22 percentage points.

Apartment Investment & Management Co (NYSE:AIV) is the second 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.

Apartment Investment & Management Co has a valuation score of 14, which is -5 points higher than the residential reit industry average of 19. It passed 1 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates AIV a Valuation Rating of "B".

Apartment Investment & Management Co's stock has dropped -71.35% in the past year. It has underperformed other stocks in the residential reit industry by -66 percentage points.

Nexpoint Residential Trust (NYSE:NXRT) 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.

Nexpoint Residential Trust has a valuation score of 14, which is -5 points higher than the residential reit industry average of 19. It passed 1 out of 7 valuation due diligence checks.

Nexpoint Residential Trust's stock has dropped -39.66% in the past year. It has underperformed other stocks in the residential reit industry by -34 percentage points.

57.14% of residential reit stocks rated by analysts are a buy right now. On average, analysts expect residential reit stocks to rise by 9.87% 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), 62.5% are rated C (Hold), 31.25% are rated D (Sell), and 6.25% are rated F (Strong Sell).