Fair Market Rent (FMR) represents the estimated price a property would rent for on the open market. It's a crucial metric for landlords to set competitive rental rates and for tenants to assess whether a rental price is reasonable. This calculator provides an estimated FMR based on several key property and location characteristics.
How Fair Market Rent is Determined
Determining FMR isn't an exact science and involves considering a multitude of factors. Our calculator uses a simplified model to provide a useful estimate. The core idea is that the rent is influenced by the size, features, condition, and desirability of the property.
Factors in This Calculator:
Property Area (sq ft): Larger properties generally command higher rents.
Number of Bedrooms & Bathrooms: More bedrooms and bathrooms typically increase rental value.
Property Type: Different property types (Apartment, House, Condo, etc.) have varying market demands and associated rental values.
Amenities Score (0-100): This score quantifies the desirability of amenities such as a pool, gym, updated kitchen, in-unit laundry, parking, etc. Higher scores suggest a more attractive property.
Location Factor (1.0 – 2.0): This factor represents the desirability and demand of the specific neighborhood or area. A factor of 1.0 would be average, while a factor of 2.0 would indicate a highly sought-after location with premium rents.
The Calculation Logic
The Fair Market Value Rent is calculated using a weighted formula that takes into account the inputs provided. While actual FMR can be influenced by many more granular factors (local market supply and demand, specific property condition, age, recent renovations, etc.), this calculator uses the following simplified approach:
Estimated Rent = (Base Rent per Sq Ft * Property Area) * (Bedroom/Bathroom Multiplier) * (Property Type Multiplier) * (Amenities Adjustment) * Location Factor
* Base Rent per Sq Ft: This is a foundational value, derived from general market data. For this calculator, we'll use a hypothetical base of $1.50 per square foot as a starting point.
* Bedroom/Bathroom Multiplier: An adjustment based on the number and type of bedrooms and bathrooms. For example: 1 Bed = 1.0, 2 Bed = 1.3, 3 Bed = 1.6, 4 Bed = 1.9; 1 Bath = 1.0, 2 Bath = 1.2, 3 Bath = 1.4.
* Property Type Multiplier: Different property types have different base values. For example: Studio = 0.9, Apartment = 1.0, Condo = 1.1, Townhouse = 1.2, House = 1.3.
* Amenities Adjustment: A factor based on the amenities score. For example: (1 + (Amenities Score / 200)). A score of 75 would add roughly 37.5% to the rent.
* Location Factor: Directly multiplies the calculated rent to reflect the area's premium.
Use Cases
Landlords: To set competitive and profitable rental prices.
Real Estate Investors: To evaluate potential rental income for investment properties.
Tenants: To understand if a proposed rent aligns with market standards.
Property Managers: To standardize rental pricing across a portfolio.
Disclaimer: This calculator provides an *estimated* Fair Market Rent. Actual market rents can vary significantly based on numerous local factors, property-specific conditions, and current economic trends. Always conduct thorough local market research for the most accurate pricing.
function calculateFairMarketRent() {
var propertyArea = parseFloat(document.getElementById("propertyArea").value);
var numberOfBedrooms = parseFloat(document.getElementById("numberOfBedrooms").value);
var numberOfBathrooms = parseFloat(document.getElementById("numberOfBathrooms").value);
var propertyType = document.getElementById("propertyType").value;
var amenitiesScore = parseFloat(document.getElementById("amenitiesScore").value);
var locationFactor = parseFloat(document.getElementById("locationFactor").value);
var resultContainer = document.getElementById("resultContainer");
var fairMarketRentResult = document.getElementById("fairMarketRentResult");
// Validate inputs
if (isNaN(propertyArea) || propertyArea <= 0 ||
isNaN(numberOfBedrooms) ||
isNaN(numberOfBathrooms) ||
isNaN(amenitiesScore) || amenitiesScore 100 ||
isNaN(locationFactor) || locationFactor 2) {
alert("Please enter valid numbers for all fields. Ensure area is positive, amenities score is between 0-100, and location factor is between 1.0-2.0.");
resultContainer.style.display = 'none';
return;
}
// — Base values and multipliers —
var baseRentPerSqFt = 1.50; // Hypothetical base rent per square foot
// Property Type Multipliers
var propertyTypeMultiplier = 1.0;
if (propertyType === "studio") {
propertyTypeMultiplier = 0.9;
} else if (propertyType === "apartment") {
propertyTypeMultiplier = 1.0;
} else if (propertyType === "condo") {
propertyTypeMultiplier = 1.1;
} else if (propertyType === "townhouse") {
propertyTypeMultiplier = 1.2;
} else if (propertyType === "house") {
propertyTypeMultiplier = 1.3;
}
// Bedroom/Bathroom Multiplier (simplified – could be more complex)
var bedBathMultiplier = 1.0;
if (numberOfBedrooms === 1) bedBathMultiplier *= 1.0;
else if (numberOfBedrooms === 2) bedBathMultiplier *= 1.3;
else if (numberOfBedrooms === 3) bedBathMultiplier *= 1.6;
else if (numberOfBedrooms >= 4) bedBathMultiplier *= 1.9;
if (numberOfBathrooms === 1) bedBathMultiplier *= 1.0;
else if (numberOfBathrooms === 1.5) bedBathMultiplier *= 1.1;
else if (numberOfBathrooms === 2) bedBathMultiplier *= 1.2;
else if (numberOfBathrooms === 2.5) bedBathMultiplier *= 1.3;
else if (numberOfBathrooms >= 3) bedBathMultiplier *= 1.4;
// Amenities Adjustment Factor
var amenitiesAdjustment = 1 + (amenitiesScore / 200.0); // e.g., 75 score gives 1 + 0.375 = 1.375
// — Calculation —
var estimatedRent = (baseRentPerSqFt * propertyArea)
* bedBathMultiplier
* propertyTypeMultiplier
* amenitiesAdjustment
* locationFactor;
// Format the result
var formattedRent = "$" + estimatedRent.toFixed(2);
fairMarketRentResult.textContent = formattedRent;
resultContainer.style.display = 'block';
}