AMH: Policy Uncertainty Around Single-Family Rentals Warrants Neutral Stance Despite Operational Strengths

American Homes, the Real Estate sector company, was revisited by a Wall Street analyst today. Analyst Juan C. Sanabria from BMO Capital maintained a Hold rating on the stock and has a $37.00 price target.

Juan C. Sanabria has given his Hold rating due to a combination of factors tied primarily to rising policy risk around the single-family rental model. Following President Trump’s announcement of plans to restrict large institutional investors from acquiring single-family homes—and his intention to seek Congressional support—Sanabria sees a material increase in regulatory uncertainty for AMH and its peers. Because dissatisfaction with institutional ownership of single-family homes has already been voiced across the aisle, he views the potential for bipartisan action as a meaningful overhang on growth and consolidation prospects. In his view, until there is more clarity on the policy roadmap, the stock is unlikely to deliver strong relative performance, warranting a more neutral stance.

At the same time, Sanabria acknowledges several positives that prevent a more negative rating. He notes that AMH’s diversified footprint across markets helps buffer it from localized supply and regulatory pressures, with the Midwest portfolio recently standing out. He also highlights the company’s disciplined capital allocation, including recent share repurchases at a discount to estimated net asset value funded by asset sales at attractive economic yields. Furthermore, he views AMH’s decision to pause new development starts heading into 2026 as a sign of management’s responsiveness and prudence, though he believes these strengths are currently outweighed by the elevated policy risk, justifying a Hold rather than an Outperform rating.

In another report released yesterday, Mizuho Securities also downgraded the stock to a Hold with a $32.00 price target.