Enter the rent of property 1 ($), the rent of property 2 ($), and the rent of property 3 ($) into the calculator to determine the Average Rent. 

Average Rent Formula

The following formula is used to calculate the Average Rent. 

Rave = (RP1 + RP2 + RP3) /3
  • Where Rave is the Average Rent ($)
  • RP1 is the rent of property 1 ($) 
  • RP2 is the rent of property 2 ($) 
  • RP3 is the rent of property 3 ($) 

To calculate the average rent, sum the rent of all properties, then divide by the number of properties.

How to Calculate Average Rent?

The following example problems outline how to calculate Average Rent.

Example Problem #1

  1. First, determine the rent of property 1 ($). In this example, the rent of property 1 ($) is given as 5000 .
  2. Next, determine the rent of property 2 ($). For this problem, the rent of property 2 ($) is given as  6000 .
  3. Next, determine the rent of property 3 ($). In this case, the rent of property 3 ($) is found to be 6500.
  4. Finally, calculate the Average Rent using the formula above: 

Rave = (RP1 + RP2 + RP3) /3

Inserting the values from above yields: 

Rave = (5000 + 6000 + 6500) /3 = 5833.33 ($)

FAQ

How is average rent useful for landlords and tenants?

Average rent calculations can help landlords set competitive rental prices and identify market trends. For tenants, understanding average rent can aid in budgeting and finding affordable housing options.

Can the average rent formula be used for different types of properties?

Yes, the average rent formula is versatile and can be applied to various property types, including apartments, houses, and commercial spaces, as long as the rent values are known.

What factors can influence the average rent of a property?

Several factors can influence the average rent, including location, property size, amenities, market demand, and economic conditions. These factors can cause rent prices to fluctuate over time.