Become a Landlord for Less Than $20?

UMH Properties, Inc. ($UMH) is a high-yield real estate investment trust that was relatively expensive about a year ago. Since then, shares have sold off, and the stock is down nearly 15% from its late-February 2025 highs.

While shares have declined over the past 12 months, UMH’s fundamentals remain solid.

In fact, last September, management announced a $100 million stock repurchase program.

The current correction gives investors a 5.59% starting dividend yield from a niche housing operator that dates back to the 1960s. It also provides exposure to hard assets in the form of physical land ownership. And, in a world where interest rates are falling, the company could see its share price rebound as Wall Street rotates back into dividend-paying stocks.

UMH Properties owns and operates 145 manufactured home communities with approximately 27,000 developed homesites across more than a dozen U.S. states. Unlike office buildings or shopping centers, there is consistent demand for affordable housing.

Additionally, manufactured housing communities generally require less maintenance than traditional high-rise or multifamily properties.

Another interesting, and often overlooked, aspect of UMH’s business is its ownership of 78 communities in the Marcellus and Utica Shale regions. These properties house energy workers and could potentially generate oil and gas royalties.

But that’s speculation.

What is not speculative is UMH’s growth. Since 2020, the company has increased its number of homesites by approximately 15%, expanded its rental home portfolio by roughly 33%, and grown its total market capitalization by 56%.

UMH also owns 2,300 acres of undeveloped land, giving the company potential upside as a long-term land bank.

While not the cheapest REIT on the market, UMH Properties trades at a relatively reasonable valuation, with a price to funds from operations (P/FFO) ratio of 16.93. This is slightly higher than Realty Income’s 14.20.

However, UMH has delivered a compound annual dividend growth rate of 4.33%, outpacing Realty Income’s 3.51%. UMH also offers a higher starting yield at 5.59% and has delivered a stronger 10-year average total return of 10.89%.

Founded in 1968, UMH went public in 1985 and has paid a dividend every year for 36 consecutive years.

REITs have struggled in recent years as higher interest rates allowed Wall Street and institutional investors to earn 5%+ “risk-free” yields from government bonds and Treasury bills.

A rate cut, something Trump is a vocal proponent of, could push institutional capital out of bonds and back into real estate. If that happens, stocks like UMH could see significant upside. That’s not wishful thinking either. In 2021, when interest rates were near zero, UMH traded above $27 per share.

If lower interest rates return, UMH stock could go much higher.

In a world where the average Quarter Pounder with Cheese meal costs $11.99, it’s amazing that investors can still buy productive, income-generating assets for under $20.

UMH Properties is currently trading for less than $17 per share.

For investors seeking a unique real estate play with a high starting yield, steady long-term dividend growth, and multiple catalysts for price appreciation, UMH looks like a great opportunity.

Investors receive a 5%+ yield today, along with potential capital appreciation as interest rates decline.

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Disclaimer: This article is for entertainment purposes only. It is not financial advice, always do your own research.