Give each expense its own assumption.
Same-home core expense growth slowed to a median 2.2% in January–June 2026 versus the prior year. Taxes rose 3.0%, while insurance fell 7.2%. One blanket escalator misses the differences.
FRONTFOOT RESEARCH / 2027 EDITION
Your 2027 SFR & BTR budget starts here.
Know what costs. Understand what changes. Build a budget you can defend.
Operating expense benchmarks per home, 2027 cost-growth assumptions, 20-market rent and vacancy trends, and a companion Excel budget worksheet. Built for single-family rental and build-to-rent investors, operators and lenders.
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THE RESEARCH BEHIND A BETTER BUDGET
ANNUAL $/UNIT LOW · MEDIAN · HIGH
ANNUAL $/UNIT LOW · MEDIAN · HIGH
$8,919Median annual operating cost per home, 2026
2.5–3.5%FrontFoot base-case 2027 operating-expense growth
~300,000Rental homes in portfolio reporting
THE SETUP FOR 2027
A better budget starts
with better questions.
Separate new leases from renewals.
September FrontFoot Rent ranged from −4.5% (Phoenix) to +9.2% (Memphis) year over year across 20 rental markets. Budget new leases from local competition, and budget renewals, retention and collections separately.
Budget what reaches the bottom line.
Fees can lift revenue and still add little to NOI. Model the service costs, expected activity and complete management burden that sit behind each income and expense line.
Same-home growth compares matching homes and periods. FrontFoot Rent is an estimated market rent, not achieved lease growth.
INSIDE THE GUIDE
The range.
The trend.
The budgeting decision.
We analyzed securitization disclosures, issuer underwriting and public rental-portfolio operating results, then paired them with FrontFoot rent and vacancy data. Use it for your next acquisition, annual budget or portfolio review.
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01
Category-by-category benchmarks
Taxes, insurance, HOA, maintenance, leasing and turns, management and total expenses.
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02
Cost history and regional context
Observed ranges over time, matched same-home expense growth and regional costs per home.
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03
The complete income picture
Rent trends, revenue, effective gross income, other-income examples and NOI.
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04
Your own 2027 budget, in Excel
The FrontFoot 2027 Budget Worksheet compares lower, base and higher cases side by side, with $/home, % of EGI and checks against the guide’s benchmarks.
A LOOK AT THE NUMBERS
What should you budget
for operating expenses?
The 2026 total operating expense median is $8,919 per covered unit annually, with observed values from $7,137 to $10,293. Use this as a historical reference, then build 2027 from the community’s actual cost drivers.
| Expense category | Low | Median | High |
|---|---|---|---|
| Property taxes | $3,588 | $4,125Range $3,588–$5,339 | $5,339 |
| Insurance | $224 | $368Range $224–$494 | $494 |
| HOA | $117 | $189Range $117–$437 | $437 |
| Repairs, maintenance & other | $803 | $1,002Range $803–$1,227 | $1,227 |
| Leasing, marketing & turnover | $700 | $760Range $700–$2,322 | $2,322 |
| Management | $1,433 | $1,479Range $1,433–$2,093 | $2,093 |
| Total operating expenses | $7,137 | $8,919Range $7,137–$10,293 | $10,293 |
Annual $/home, 2026. Each line is an independent benchmark, so the line medians don't sum to the total.
Dollar cost is only half the picture.
At the median, operating expenses absorb about a third of effective gross income (33.4% on matched statements; 2026 observations ranged from 33.2% to 42.1%). The guide shows both the dollars and the income burden for every line.
FRONTFOOT 2027 OUTLOOK
How much will SFR operating costs rise in 2027?
FrontFoot's base case calls for single-family rental operating expenses to rise 2.5–3.5% in 2027, with property taxes and maintenance outpacing insurance.
| 2027 planning assumption | Lower case | Base case | Higher case |
|---|---|---|---|
| Property taxes | 0–2% | 3–4%Lower 0–2% · Higher 5–8% | 5–8% |
| Insurance | −5% to 0% | 0–3%Lower −5% to 0% · Higher 5–10% | 5–10% |
| Recurring maintenance | 1–3% | 4–6%Lower 1–3% · Higher 7–10% | 7–10% |
| Leasing / turnover (per comparable package) | 0–2% | 2–4%Lower 0–2% · Higher 5–8% | 5–8% |
| HOA dues | 0–2% | 3–5%Lower 0–2% · Higher 6–8% | 6–8% |
| Management | Fee rate × EGI | Fee rate × EGI | Fee rate × EGI |
Insurance relief is uneven.
Same-home insurance costs fell 7.2% in January–June 2026, but higher insured values and liability costs can offset rate relief. Coastal Florida and Texas still need local quotes.
Taxes keep climbing.
The median property tax per home has risen every year since 2023, reaching $4,125 in 2026. Budget from the assessment, not the average.
Watch maintenance and turns.
Same-home maintenance and turn costs rose 4.3% in January–June 2026, faster than core costs overall (2.2%).
Planning assumptions for stabilized communities with comparable homes and services, not observed percentiles. Known quotes, dues and tax bills override them. Build total growth from your own cost weights; budget turnover volume separately.
Run all three cases on your own budget with the Excel worksheet ↓FRONTFOOT RENT & VACANCY / SEPTEMBER 2026
Where are SFR rents moving?
Across 20 selected rental markets, September 2026 FrontFoot Rent ranged from a 9.2% gain in Memphis to a 4.5% decline in Phoenix year over year.
Strongest rent growth (YoY)
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Memphis, TN-MS-AR$1,875 / month+9.2%
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Kansas City, MO-KS$2,007 / month+8.8%
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Birmingham, AL$1,701 / month+5.7%
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Jacksonville, FL$2,188 / month+4.9%
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Lakeland, FL$2,188 / month+4.5%
Largest rent declines (YoY)
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Phoenix, AZ$2,284 / month−4.5%
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North Port-Sarasota, FL$2,484 / month−3.5%
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Raleigh, NC$2,176 / month−2.0%
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Atlanta, GA$2,305 / month−1.6%
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Orlando, FL$2,525 / month−1.2%
FrontFoot Rent is an estimated monthly market rent per home, not achieved lease growth. Institutional listing share = active listings ÷ tracked institutional inventory; it is not physical vacancy.
FROM REFERENCE TO RESEARCH
The guide frames the budget.
FrontFoot brings the market into focus.
Daily asking rents, rent comps and owner-by-owner portfolios. Put the homes competing for your next resident alongside your operating assumptions.
Explore rental intelligence
Pull rent comps for your subject.Current asking rents for comparable homes near your subject.
02
See who owns the competition.Institutional owner portfolios, footprints and listing activity by
submarket.
03
Start with your market.Create your FrontFoot account and explore the market you are underwriting.
QUICK ANSWERS
Before you build
the next budget.
A few useful distinctions to keep the reference working for you.
What does it cost to operate a single-family rental?
The 2026 portfolio-reporting median was $8,919 per home per year, with observations ranging from $7,137 to $10,293. Property taxes were the largest line at a $4,125 median, followed by management ($1,479), repairs, maintenance and other ($1,002), leasing and turnover ($760), insurance ($368) and HOA dues ($189). Capital spending, reserves and debt service are excluded.
What is a typical SFR operating expense ratio?
Operating expenses absorb about a third of effective gross income at the median: 33.4% on matched 2026 statements, with observations from 33.2% to 42.1%. Start your budget in dollars per home, then divide by your own effective gross income to test the burden.
How much are property taxes on a single-family rental?
The 2026 median was $4,125 per home per year, with a range of $3,588 to $5,339, or about 17.7% of effective gross income at the matched-statement median. The dollar median has risen every year since 2023. FrontFoot’s 2027 base case assumes taxes rise 3–4%; known assessments and reassessments override that allowance.
How much should I budget for SFR insurance in 2027?
The 2026 median was $368 per home per year, with an observed range of $224–$494. Same-home insurance costs fell 7.2% in January–June 2026, and FrontFoot’s 2027 base case assumes 0–3% growth in total insurance cost. Coastal Florida and Texas portfolios should budget from local renewal quotes.
How much will SFR operating expenses increase in 2027?
FrontFoot’s base case is 2.5–3.5% total operating-expense growth for stabilized communities. Category assumptions are taxes 3–4%, insurance 0–3%, recurring maintenance 4–6%, comparable turn-package cost 2–4% and HOA dues 3–5%, with management following effective gross income. Build the total from your own cost lines and budget turnover volume separately.
Does the guide apply to build-to-rent communities?
The $8,919 annual operating-cost median combines SFR and BTR portfolio reporting. Apply the guide to the community’s design, including common areas, landscaping, amenities, warranties and owner-paid utilities. It is a combined reference rather than a separate BTR cost distribution.
Where does the data come from?
Portfolio reporting across nearly 300,000 rental homes informs the research. FrontFoot analyzed securitization disclosures, issuer underwriting and public rental-portfolio operating results, with expense history from 2020 to 2026. Rent and vacancy trends come from FrontFoot market data. Data cut-off: November 2, 2026.
Is the guide free?
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LESS DIGGING. BETTER ASSUMPTIONS.
A budget you
can defend.
Make the next plan your best-informed one yet.
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2027 edition · 27-page PDF + Excel budget worksheet