Best Markets to Buy and Hold Real Estate

Real estate investors whose strategy is to buy and hold rental properties are facing higher initial purchase prices, a much tighter inventory of properties to choose from and a resurgence of interest from large institutional investors.

Here are the top 10 counties for best annual gross rental yield and lowest investment property vacancy rate during the first seven months of 2016.

Monroe County, Pennsylvania: 16 percent rental yield, 0.4 percent vacancy rate

Hernando County, Florida: 14.3 percent rental yield, 2.1 percent vacancy rate

Lackawanna County, Pennsylvania: 12.1 percent rental yield, 2.1 percent vacancy rate

Westmoreland County, Pennsylvania: 11.8 percent rental yield, 2.8 percent vacancy rate

Davidson County, North Carolina: 11.8 percent rental yield, 2.6 percent vacancy rate

Marion County, Florida: 11.7 percent rental yield, 1.9 percent vacancy rate

Wicomico County, Maryland: 11.7 rental yield, 2.1 percent vacancy rate

Randolph County, North Carolina: 11.1 percent rental yield, 2.7 percent vacancy rate

Ulster County, New York: 11 percent rental yield, 2.1 percent vacancy rate

El Paso County, Texas: 11 percent rental yield, 1.9 percent vacancy rate.