What is Zillow Observed Rent Index (ZORI)?
The Zillow Observed Rent Index (ZORI) measures the typical asking rent for a given geography, updated monthly. Unlike a simple median, ZORI is repeat-rent indexed — it tracks rent changes on the same units over time rather than just the mix of currently-listed rentals.
ZORI is the standard rent benchmark for cap-rate and BRRRR analysis. Unlike "asking rent" or "median rent" which fluctuate based on what's listed in a given month, ZORI is methodology-controlled to track actual rent inflation on consistent inventory.
On Metro Deal Report city pages, ZORI is the "Median rent" stat. Combined with the typical home value (ZHVI), it produces the gross rent yield — one of the most important screening numbers for any rental investor.
Concepts that connect.
Gross rent yield is annual gross rent divided by the property's purchase price (or current value), expressed as a percentage. It ignores operating expenses and is used as a quick first-pass screening metric. A 6% gross yield is roughly the floor for a viable rental in most US markets in 2026.
The Zillow Home Value Index (ZHVI) is a smoothed, seasonally-adjusted measure of typical home value for a given geography (zip, city, metro, state). It captures the value of a "typical" home in the 35th-65th percentile range — a more stable indicator than median sale price.
The Metro Deal Report Investor Score is a 0-100 composite ranking of US real estate metros, combining rent yield (40%), buyer-market discount via sale-to-list ratio (30%), motivated-seller proxies via percent of homes sold below list (20%), and median days-on-market (10%).
The Weekly Deal Memo
One market memo, one off-market playbook, one tool review. Every Friday. Free.
No spam. Unsubscribe anytime.