Rent estimate guide
How to Estimate Market Rent for an Investment Property
Build a rent range from relevant comps, adjust for the subject property, and test the result against current supply.
Define the subject property
Record the property type, location, bedrooms, bathrooms, square footage, condition, parking, laundry, outdoor space, and utilities. These facts guide the comp search.
Select and adjust the comps
Choose recent nearby rentals that match the important features. Remove outliers that are not truly comparable. Adjust the range for clear differences in condition, amenities, or exact location.
Use a conservative planning number
Underwrite the property with a rent that the evidence supports. Then test a lower rent and more vacancy. The investment should not depend on reaching the highest listing in the area.