Vacancy Rate
The estimated percentage of time the property will be vacant each year.
Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Vacancy Rate Formula
User Input (%)
Where to Find This Value
Here's where you can find the value for Vacancy Rate:
Local Market Data
Check local apartment association reports or CoStar for area vacancy rates
Property Manager
Experienced local property managers know typical vacancy rates for your area
Census ACS Data
American Community Survey reports vacancy rates by county and metro area
Platform Distribution
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See the average, median, and where your property ranks among 105 properties on the platform.
Unlock Rental Property CalculatorWhy It Matters
Vacancy directly reduces your Effective Gross Income and every downstream metric. Underestimating vacancy is one of the most common mistakes in deal analysis. Use local market data and historical property performance — not optimistic assumptions — to set a realistic vacancy rate.
Detailed Explanation
Vacancy Rate is the percentage of Gross Potential Rent lost to unoccupied periods — time between tenants, lease-up periods, and units undergoing turnover repairs. A 5% vacancy rate means roughly 18 days per year of lost rent. The rate varies by market, property type, and management quality. Urban areas with strong demand may see 3–5%, while rural or seasonal markets may see 8–12%.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Total Expense Per Unit Per Year
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