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Effective Vacancy Rate
Two-Input Ratio Expense Metrics Risk Assessment Operating Expenses

Vacancy Loss

Income lost to vacancy, shown annually and monthly.

Example Result

Sample Data
$1,710 /year
$143 /month

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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Vacancy Loss Formula

Monthly (Gross Potential Rent × Vacancy Rate) ÷ 12 $143/mo
Annual Gross Potential Rent × Vacancy Rate $1,710/yr

What This Means

A sample property priced at $385,000 with $2,850/month rent has a vacancy loss of $1,710 at Purchase (Month 0). Every month a unit sits empty, you lose rent AND still pay the mortgage and expenses. Even small changes in vacancy rate significantly impact cash flow. Understanding vacancy loss helps you budget conservatively.

Where This Value Comes From

Vacancy Loss is not entered directly — it is calculated from Gross Potential Rent and Vacancy Rate. See the formula breakdown above and the detailed inputs below.

Inputs That Determine Vacancy Loss

Calculations That Use Vacancy Loss

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Why It Matters

Every month a unit sits empty, you lose rent AND still pay the mortgage and expenses. Even small changes in vacancy rate significantly impact cash flow. Understanding vacancy loss helps you budget conservatively.

Detailed Explanation

Vacancy Loss is the annual income you forgo due to units being unoccupied. It is calculated as a percentage of gross potential rent based on the expected vacancy rate for the market and property type.

Example

Sample Result
$1,710

Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.

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