Enter positive for superior amenities, negative for inferior.
Average Rent per Sq. Ft.$0.00
Base Market Rent$0.00
Adjusted Market Rent$0.00
Recommended Range (+/- 5%)$0 – $0
function calculateMarketRent() {
// Inputs
var subjectSqFt = parseFloat(document.getElementById('subjectSqFt').value);
var amenityAdj = parseFloat(document.getElementById('amenityAdjustment').value) || 0;
// Comps
var r1 = parseFloat(document.getElementById('comp1Rent').value);
var s1 = parseFloat(document.getElementById('comp1SqFt').value);
var r2 = parseFloat(document.getElementById('comp2Rent').value);
var s2 = parseFloat(document.getElementById('comp2SqFt').value);
var r3 = parseFloat(document.getElementById('comp3Rent').value);
var s3 = parseFloat(document.getElementById('comp3SqFt').value);
// Validation
if (isNaN(subjectSqFt) || subjectSqFt 0) {
totalPpsq += (r1 / s1);
compCount++;
}
// Process Comp 2
if (!isNaN(r2) && !isNaN(s2) && s2 > 0) {
totalPpsq += (r2 / s2);
compCount++;
}
// Process Comp 3
if (!isNaN(r3) && !isNaN(s3) && s3 > 0) {
totalPpsq += (r3 / s3);
compCount++;
}
if (compCount === 0) {
alert("Please enter at least one valid Comparable Property (Rent and Size).");
return;
}
// Calculation
var avgPpsq = totalPpsq / compCount;
var baseRent = avgPpsq * subjectSqFt;
// Apply Adjustment
var adjustmentMultiplier = 1 + (amenityAdj / 100);
var finalRent = baseRent * adjustmentMultiplier;
// Ranges
var rangeLow = finalRent * 0.95;
var rangeHigh = finalRent * 1.05;
// Display
document.getElementById('avgPpsqResult').innerText = "$" + avgPpsq.toFixed(2) + " / sq.ft";
document.getElementById('baseRentResult').innerText = "$" + baseRent.toLocaleString('en-US', {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('adjustedRentResult').innerText = "$" + finalRent.toLocaleString('en-US', {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('rangeResult').innerText = "$" + rangeLow.toLocaleString('en-US', {minimumFractionDigits: 0, maximumFractionDigits: 0}) + " – $" + rangeHigh.toLocaleString('en-US', {minimumFractionDigits: 0, maximumFractionDigits: 0});
document.getElementById('mrrResults').style.display = 'block';
}
Understanding Market Rental Rates
Determining the correct market rental rate is the single most important decision for a real estate investor or landlord. Set the rent too high, and you face extended vacancy periods that kill your cash flow. Set it too low, and you leave money on the table while potentially devaluing your asset. This Market Rental Rate Calculator uses the Comparative Market Analysis (CMA) method, which is the industry standard for appraisal and property management.
How This Calculator Works
This tool relies on a "Price Per Square Foot" (PPSQ) analysis derived from comparable properties (comps). Here is the logic breakdown:
Comparable Analysis: By inputting the monthly rent and square footage of similar nearby properties, the calculator determines the average price tenants are paying per square foot in your area.
Subject Property Valuation: This average PPSQ is applied to your property's size to establish a baseline market rent.
Adjustments: Real estate is rarely identical. The "Amenity Premium/Discount" field allows you to adjust the final figure by a percentage. If your property has a renovated kitchen, a pool, or a better view than the comps, you might add 5-10%. If it lacks parking or laundry, you might subtract 5%.
Why "Price Per Square Foot" Matters
While total rent is important, analyzing rent on a per-square-foot basis normalizes differences in property size. For example, a 1,000 sq. ft. apartment renting for $2,000 ($2.00/sq.ft) is actually more expensive relative to size than a 1,500 sq. ft. unit renting for $2,500 ($1.66/sq.ft). This metric helps you compare apples to apples.
Factors That Influence Rental Rates
Beyond square footage, consider these factors when applying your percentage adjustment:
Location: Proximity to transit, schools, and city centers commands a premium.
Condition: Recently renovated units with modern appliances (stainless steel, granite/quartz) rent faster and for more money.
Amenities: In-unit laundry, parking spaces, air conditioning, and outdoor space (balconies/yards) are major value drivers.
Pet Policy: allowing pets can often justify a higher rent or a specific pet fee, increasing your effective yield.
Tip: Always aim for a rent that is competitive. It is often more profitable to rent a unit for $1,950 immediately than to hold out for $2,000 and sit vacant for two months.