Top REIT Funds for Monthly Passive Income in 2025

If you’re like me, you’ve probably spent more than a few late nights scrolling through investment forums, wondering how to actually build passive income without selling your soul to the stock market. I’ve tried everything—dividend stocks, crypto, even that weird “invest in a goat” scheme (don’t ask). But nothing has felt as steady, or as real, as real estate investment trusts, or REITs.

Here’s the thing: REITs let you own a piece of real estate—apartments, offices, hospitals, even cell towers—without having to deal with leaky roofs or tenant drama. And the best part? Many of them pay dividends every single month. That’s right, monthly passive income. Not quarterly, not “when the board feels like it,” but every. Single. Month.

If we’re being real, I didn’t always get this right. I started with a few big-name REITs, then lost money when the market dipped, and then doubled down on ETFs. Looking back, I wish I’d had a clear guide to the best REIT funds for monthly income. So here’s what I’ve learned, plus the top picks for 2025.

Why Monthly Dividend REITs?

Most dividend stocks pay out quarterly. But REITs are different. Because of the way they’re structured, many REITs pay monthly, which is a game-changer if you’re trying to build a steady stream of passive income.

Not gonna lie, I was skeptical at first. I thought, “How can a company afford to pay dividends every month?” But it makes sense when you think about it: REITs own buildings that collect rent every month, so it’s natural for them to pass that income on to investors.

Monthly dividends also help smooth out your cash flow. If you’re living off your investments, getting paid every month instead of every three months makes a huge difference in budgeting and peace of mind.

My Personal REIT Journey

I started investing in REITs back in 2020, right after the pandemic hit. I was working remotely, saving more than usual, and wanted to do something with my money that felt stable. I picked a few REITs based on dividend yield and… well, let’s just say I learned the hard way that yield isn’t everything.

One REIT I bought had a sky-high yield, but it was paying out more than it was earning. A year later, they cut the dividend, and I lost a chunk of my income. It was a wake-up call. I realized I needed to look beyond just the yield and focus on the company’s financial health, property type, and long-term prospects.

Since then, I’ve shifted to a mix of individual REITs and REIT ETFs. I’ve found that ETFs are great for diversification, while individual REITs can offer higher yields if you pick the right ones.

Top REIT Funds for Monthly Passive Income in 2025

Here are the REIT funds I’m watching in 2025, based on performance, dividend consistency, and overall stability. I’ve included both individual REITs and ETFs, so you can choose what fits your risk tolerance and investment style.

Individual REITs

1. Realty Income Corp (O)

   • Known as “The Monthly Dividend Company,” Realty Income pays dividends every month and has a long track record of increasing its payout. Their portfolio is mostly retail and industrial properties, which have held up well despite the retail apocalypse.
   • Dividend yield: ~5.6%
   • Why I like it: Consistent, reliable, and they’ve raised their dividend for over 25 years.

2. American Tower Corp (AMT)

   • American Tower owns and operates cell towers, which are in high demand as mobile data usage grows. They pay monthly dividends and have a strong global presence.
   • Dividend yield: ~3.5%
   • Why I like it: The world isn’t going to stop using cell phones anytime soon.

3. Ventas Inc (VTR)

   • Ventas specializes in healthcare facilities, including senior housing and medical offices. The aging population means steady demand for these properties.
   • Dividend yield: ~4.5%
   • Why I like it: Defensive sector, attractive valuation, and monthly dividends.

4. Crown Castle Inc (CCI)

   • Crown Castle is another leader in communications infrastructure, focusing on towers and fiber networks. They’ve been expanding aggressively and pay a solid monthly dividend.
   • Dividend yield: ~4.1%
   • Why I like it: Consistent returns and exposure to the growing demand for connectivity.

5. Camden Property Trust (CPT)

   • Camden is a multifamily REIT, meaning they own apartment buildings. They’ve done well in high-demand markets like the Sunbelt, where rental growth is strong.
   • Dividend yield: ~3.8%
   • Why I like it: Residential real estate is always in demand, and they’ve got a solid track record.

REIT ETFs

If you want to spread your risk across multiple REITs, ETFs are a great option. Here are the top REIT ETFs for monthly passive income:

1. iShares U.S. Real Estate ETF (IYR)

   • This ETF tracks the performance of U.S. real estate companies, including REITs. It’s diversified across property types and pays monthly dividends.
   • Expense ratio: 0.43%
   • Why I like it: Broad exposure, low fees, and monthly payouts.

2. JPMorgan BetaBuilders U.S. REIT ETF (BBRE)

   • BBRE is designed to track the performance of U.S. REITs with a focus on low-cost, broad diversification. It also pays monthly dividends.
   • Expense ratio: 0.13%
   • Why I like it: Very low fees and a solid track record.

3. First Trust S&P REIT Index Fund (FRI)

   • FRI tracks the S&P REIT Index and offers exposure to a wide range of REITs. It pays monthly dividends and has a low expense ratio.
   • Expense ratio: 0.56%
   • Why I like it: Diversified, low-cost, and monthly income.

How to Choose the Right REIT Fund

Choosing the right REIT fund isn’t just about picking the highest yield. Here’s what I look for:

• Dividend consistency: Has the fund paid dividends every month for several years?
• Financial health: Is the company or ETF financially stable? Check their debt levels and payout ratio.
• Property type: What kind of real estate do they own? Some sectors (like healthcare or communications) are more resilient than others.
• Fees: For ETFs, lower fees mean more money in your pocket.
• Growth potential: Are they expanding their portfolio or entering new markets?

Here’s a quick comparison table to help you decide:

What I’d Do Differently

Looking back, I wish I’d diversified more from the start. I put too much into a few high-yield REITs and got burned when the market shifted. Now, I split my REIT investments between individual REITs and ETFs. This gives me the best of both worlds: higher yields from individual REITs and stability from ETFs.

I also wish I’d paid more attention to the property type. Some sectors, like retail, have struggled in recent years, while others, like healthcare and communications, have thrived. Diversifying across sectors helps protect against downturns in any one area.

Mistakes to Avoid

Here are a few common mistakes I see people make with REITs:

• Chasing high yields: A sky-high yield can be a red flag. It might mean the company is paying out more than it’s earning, which isn’t sustainable.
• Ignoring fees: For ETFs, even a small difference in expense ratio can add up over time.
• Not diversifying: Putting all your money into one REIT or sector is risky. Spread your bets.
• Forgetting about taxes: REIT dividends are usually taxed as ordinary income, not qualified dividends. Keep that in mind when planning your portfolio.

Final Thoughts

Building passive income with REITs isn’t a get-rich-quick scheme. It’s a slow, steady process that requires research, patience, and a bit of trial and error. But if you pick the right funds and stay disciplined, you can build a reliable stream of monthly income that helps you sleep better at night.

I’m not saying REITs are perfect. They come with risks, like any investment. But for me, they’ve been one of the most stable and rewarding parts of my portfolio.

If you’re thinking about adding REITs to your portfolio, start small. Pick one or two funds, see how they perform, and adjust as you go. And don’t be afraid to ask questions or do your own research. The more you know, the better your decisions will be.

What’s your experience with REITs? Have you found a fund that pays great monthly dividends? Share your thoughts in the comments—I’d love to hear what’s working for you.

You may also like

• How to Achieve Financial Freedom with Real Estate: Your Ultimate Guide
• How to Protect Your Portfolio During Inflation: Smart Strategies for 2025
• Top Robo-Advisors for Automated Investing in 2025: Smart, Simple, and Efficient
• Best Dividend-Paying Stocks for Passive Income: Your Guide to Smart Investing
• Best Countries for Real Estate Investment Abroad in 2025