How is the market rent calculated for vacant units?

The calculation of market rent for vacant units typically involves analyzing current market conditions rather than relying on historical income or trends. The correct method takes into account the average rent in the neighborhood, which reflects the prices that potential tenants are willing to pay for similar properties. This approach provides a more accurate representation of what the market can bear at that specific time.

Determining market rent involves considering factors such as location, property condition, amenities, and current economic conditions. Analyzing comparable properties in the neighborhood allows landlords and property managers to set competitive and realistic rental prices. Thus, relying on the average rent in the neighborhood is a more effective method for determining the market rent for vacant units. This helps ensure the property does not sit empty due to unrealistic rental expectations.