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what it is
American Homes 4 Rent buys, builds, fixes, and leases single-family houses across 24 states.
how it gets paid
Last year Rent made $1.9B in revenue. occupied rental homes was the main engine at $1.90B, or 95% of sales.
what just happened
AMH posted $0.33 EPS in its last reported quarter, below the $0.35 estimate, while property revenue still grew 7.5% vs. prior year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
50/100 earnings predictability — expect surprises
26.2x trailing p/e — priced about right
4.3% dividend yield — cash in your pocket every quarter
4.5% return on capital — nothing to write home about
xvary composite: 65/100 — average
What they do
American Homes 4 Rent buys, builds, fixes, and leases single-family houses across 24 states.
Scale is the edge here. AMH had 61,336 single-family properties at 12/31/24, and 95.0% were occupied, excluding homes held for sale. If you are a renter, you care about clean homes and fast service. If you are an investor, you care that 57,689 homes were occupied on average in the latest quarter, which keeps rent checks coming.
How they make money
$1.9B
annual revenue
occupied rental homes
$1.90B
+7.5%
vacancy and turn homes
$0.05B
1.3%
held-for-sale homes
$0.03B
flat
other property revenue
$0.02B
+7.5%
The products that matter
leases suburban houses
Single-family rental homes
61,336 homes · 95% occupancy
this is the core business: 61,336 homes generating $1.9B in annual revenue at a 53% operating margin.
the engine
adds homes to portfolio
Development and acquisitions
2.7% portfolio growth
average occupied homes reached 57,689 in q3, up 2.7% vs. prior year. That's how AMH grows when rent increases alone are not enough.
growth lever
Key numbers
53.0%
operating margin
Operating margin → how much profit is left after running the business → so what: this is a very fat margin for a landlord.
4.3%
dividend yield
Dividend yield → your annual cash payout at today's price → so what: you are getting paid while you wait.
26.2x
trailing p/e
P/E → price compared with last year's earnings → so what: you are paying up for a steady business.
$2.0B
FY2026 revenue
Revenue estimate → expected sales next year → so what: this is a large, established operator, not a tiny housing bet.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 95 / 100
- net profit margin 29.4% — keeps 29 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in AMH 3 years ago → it's now worth $10,890.
The index would have given you $13,920.
source: institutional data · total return
What just happened
missed estimates
AMH posted $0.33 EPS in its last reported quarter, below the $0.35 estimate, while property revenue still grew 7.5% vs. prior year.
The miss was small. The real operating story was better: rents and other single-family property revenue reached $478.5 million in the September interim, helped by an average occupied portfolio of 57,689 homes. The weak spot was occupancy, with same-house average occupied days falling from 96.3% to 95.0% sequentially.
$478.5M
revenue
$0.33
eps
95.0%
occupancy
the number that mattered
95.0% occupancy matters most because this business lives or dies on whether homes are filled, and that figure moved down from 96.3%.
-
american homes 4 rent delivered respectable results in the september interim.
-
rents and other single-family property revenues increased 7.5% vs. prior year in the third quarter, to $478.5 million, driving a core funds from operations (ffo) per share increase of 6.2% to $0.47.
-
revenue growth was driven by an increase in the average occupied portfolio, which grew to 57,689 homes in the quarter, representing a 2.7% annual increase, along with higher rental rates.
-
samehouse average occupied days dipped sequentially, retreating back to the level of the march quarter, from 96.3% to 95.9%, with new, renewal, and blended rental rate spreads of 2.5%, 4.0%, and 3.6%.
-
for clarity, rental rate spreads reflect the percentage change in rental income when a new lease is executed as compared to the previous lease.
source: company september interim update and wall street consensus, 2025
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What could go wrong
the #1 risk is same-house occupancy erosion in a higher-rate housing market.
high
occupancy and rent-spread slowdown
Same-house occupancy already fell from 96.3% to 95.0%. New lease spreads were 2.5%, renewal spreads 4.0%, and blended spreads 3.6%.
A 1% drop in occupancy across the portfolio could cost roughly $19M in annual rent.
med
interest rate pressure
AMH is a REIT. In human-speak: higher rates raise funding costs and make a 4.3% dividend compete with safer yields.
Higher rates can squeeze acquisition economics and make 2.7% portfolio growth harder to earn on.
med
housing-market softness
This business depends on households choosing to rent houses rather than buy them. If affordability or job markets crack, turnover rises and pricing power fades.
With $1.9B in annual revenue concentrated in one business, there isn't another segment coming to the rescue.
you're buying a $1.9B rent stream with strong margins, but the model gets less attractive fast if occupancy keeps slipping from 95.0% and rent spreads keep narrowing.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
next earnings
Track same-house occupancy at 95.0%. Another 1-point drop would cost roughly $19M in annual rent.
risk
interest rates
A 4.3% yield looks different when safer yields move up. Watch financing conditions for new homes.
metric
rent spreads
New 2.5%, renewal 4.0%, blended 3.6%. If blended spreads compress again, pricing power is fading.
metric
operating margin
53% is the quiet part. If margins hold, the dividend story survives even when growth slows.
Analyst rankings
earnings predictability
50 / 100
The business is simple. The quarter-to-quarter numbers still swing with occupancy, rent spreads, and acquisition timing.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 230 buyers vs. 227 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$27
$45
$31
current price
$36
target midpoint · +15% from current · 3-5yr high: $50 (+60% · 16% ann'l return)
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