U.S. cities with highest rental rate increase

Families who reside in the Southern and Western cities of the U.S. pay much higher rent this year. RentRange reported that compared to last year, rents for single-family homes in these two parts of the country increased the most.

"The biggest increases were in the areas where the [housing] market was most depressed," said CEO Wally Charnoff.

According to CNN Money, the highest rent hikes were in Cape Coral/Fort Myers, Florida. The average rent increased nearly 24% in the third quarter, compared to the same time last year. Rents boost at 18% in Sacramento, California.

Charnoff explained that strong job growth, greater foreign buyer activity and a sprouting millennial population has aided to increase rents in California.

He said that homes undergoing foreclosure were more difficult to rent out and always charged lower rates. Today, since more properties are moving through the system, investors can impose bigger rents.

Generally, California and Florida is responsible for seven out of the top 10 cities that are included. But the yields they produced are not as high compared to the figures earned by the housing markets that come from the Central U.S. and the Midwest. In Alabama alone, a yield of almost 15% was earned based on the latest report, according to Tech Times.

The ranking involved those cities that belong in the Metropolitan Statistical Areas. In these places, rental prices of single-family homes had been observed for the Q3 report of 2015 and were then compared with the report that was released in the same quarter of 2014.

"We continue to see substantial opportunity in real estate investing, but strengthening real estate markets in many regions require investors to be more informed before buying an investment property and rehabilitating it in order to achieve their desired return," said Charnoff. "While, not surprisingly, California and Florida are experiencing the largest rental rate increases, further analysis reveals that markets in Alabama, Texas, Kansas and Ohio actually produce a much higher average yield."

Based on the report of RentRange, here is a list of the 25 cities with the highest rent with their respective change in rent "R" and average yield "Y" for Q3, according to Tech Times.

First is Cape Coral-Fort Myers, FL 23.6% R and 9.1% Y.

Second is Sacramento-Arden-Arcade-Roseville, CA with 17.6% R and 6.6% Y.

The third is North Port-Bradenton-Sarasota, FL with 17.2% R and 9.7% Y.

The fourth is San Francisco-Oakland-Fremont, CA with 17% R and 5.6% Y.

Fifth is Charleston-North Charleston, SC with 16.5% R and 9.0% Y.

Sixth is Los Angeles-Long Beach-Santa Ana, with CA 16.3% R and 5.6% Y.

Seventh is San Jose-Sunnyvale-Santa Clara, CA with 16.1% R and 4.7% Y.

Eight is Denver-Aurora, CO with 14.6% R and 6.7% Y.

Ninth is Dallas-Fort Worth-Arlington, TX with 14.0% R and 13.4% Y.

The tenth is San Diego-Carlsbad-San Marcos, CA with 13.6% R and 5.6% Y.

Eleventh is Nashville-Davidson-Murfreesboro-Franklin, TN with 13.2% R and 9.7% Y.

Twelfth is Portland-Vancouver-Hillsboro, OR-WA with 12.6% R and 6.6% Y.

Thirteenth is Augusta-Richmond County, GA-SC with 12.3% R and 9.8% Y.

Fourteenth is Stockton, CA with 12.1% R and 7.3% Y.

Fifteenth is Seattle-Tacoma-Bellevue, WA with 11.9% R and 6.4% Y.

The sixteenth is Columbus, OH with 11.5% R and 12.4% Y.

The seventeenth is Tulsa, OK with 11.3% R and 11.7% Y.

The eighteenth is Kansas City, MO-KS with 10.6% R and 12.7% Y.

The nineteenth is Little Rock-North Little Rock-Conway, AR with 10.4% R and N/A Y.

Twentieth is Tampa-St. Petersburg-Clearwater, FL with 10.3% R and 11.5% Y.

Twenty-first is Orlando-Kissimmee-Sanford, FL with 10.0% R and 10.6% Y.

Twenty-second is Oxnard-Thousand Oaks-Ventura, CA with 10.0% R and 5.7% Y.

Twenty-third is Birmingham-Hoover, AL with 9.8% R and 14.8% Y.

Twenty-fourth is Bakersfield-Delano, CA with 9.7 percent R and 9.6% Y.

Twenty-fifth is Houston-Sugar Land-Baytown, TX with 9.6% R and 14.0% Y.