A $24,000 annual rent equivalent demands $686,000 at 3.5% yield or $240,000 at 10% yield, per analysis.
Generating $24,000 in annual dividend income to cover average US rent costs requires capital ranging from $240,000 to $686,000, depending on yield. A 3.5% yield necessitates $686,000, while a 10% yield reduces the requirement to $240,000.
At a 6% yield, $400,000 is needed to produce the same income. A portfolio blending O, STAG, EPD, and VZ at roughly 5.5% yield generates about $22,000 annually on $400,000. Average US rent is projected at $2,000 monthly in 2026, totaling $24,000 annually.
Higher yields reduce capital needs but may involve greater risk, including principal erosion. A 3.5% yield growing 8% annually can surpass a flat 10% yield in cumulative income within a decade.