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: A, 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 7 points higher than the residential reit industry average of 26.

MRP passed 12 out of 38 due diligence checks and has average fundamentals. Millrose Properties has seen its stock return 19.61% over the past year, overperforming other residential reit stocks by 30 percentage points.

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 32, which is 6 points higher than the residential reit industry average of 26.

AIV passed 13 out of 38 due diligence checks and has average fundamentals. Apartment Investment & Management Co has seen its stock lose -47.28% over the past year, underperforming other residential reit stocks by -37 percentage points.

Sun Communities (NYSE:SUI) 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 Sun Communities (NYSE:SUI) is: Value: C, Growth: C, Momentum: C, Sentiment: F, Safety: C, Financials: C, and AI: B.

Sun Communities (NYSE:SUI) has a Due Diligence Score of 47, which is 21 points higher than the residential reit industry average of 26.

SUI passed 17 out of 38 due diligence checks and has strong fundamentals. Sun Communities has seen its stock lose -2.94% over the past year, overperforming other residential reit stocks by 7 percentage points.

Sun Communities has an average 1 year price target of $144.00, an upside of 13.79% from Sun Communities's current stock price of $126.55.

Sun Communities stock has a consensus Buy recommendation according to Wall Street analysts. Of the 10 analysts covering Sun Communities, 40% have issued a Strong Buy rating, 30% have issued a Buy, 30% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 19 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 11.53%, which is 6 percentage points higher than the residential reit industry average of 5.4%. 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 9.65%, which is 4 percentage points higher than the residential reit industry average of 5.4%.

Millrose Properties's dividend payout ratio of 104.5% 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 7.19%, which is 2 percentage points higher than the residential reit industry average of 5.4%. 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 -165.1% indicates that its high dividend yield might not be sustainable for the long-term.

Residential reit stocks were down -0.22% in the last day, and up 2.69% 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 71, which is 53 points higher than the residential reit industry average of 18. It passed 5 out of 7 valuation due diligence checks.

Millrose Properties's stock has gained 19.61% in the past year. It has overperformed other stocks in the residential reit industry by 30 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 53 points higher than the residential reit industry average of 18. It passed 5 out of 7 valuation due diligence checks.

Apartment Investment & Management Co's stock has dropped -47.28% in the past year. It has underperformed other stocks in the residential reit industry by -37 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 29, which is 11 points higher than the residential reit industry average of 18. It passed 2 out of 7 valuation due diligence checks.

Avalonbay Communities's stock has dropped -12.22% in the past year. It has underperformed other stocks in the residential reit industry by -2 percentage points.

68.75% of residential reit stocks rated by analysts are a buy right now. On average, analysts expect residential reit stocks to rise by 8.44% 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), 21.05% are rated C (Hold), 63.16% are rated D (Sell), and 10.53% are rated F (Strong Sell).