Enter the total property cost ($) and the total build cost ($) into the calculator to determine the Estimated Rent of Build-to-Rent. 

Estimated Rent of Build-to-Rent Formula

The following formula is used to calculate the Estimated Rent of Build-to-Rent. 

R = ( PC + BC) * .01
  • Where R is the Estimated Rent of Build-to-Rent ($/month)
  • PC is the total property cost ($) 
  • BC is the total build cost ($) 

To calculate the rent of a build-to-rent, sum the property cost and build cost, then multiply by 1 percent.

How to Calculate Estimated Rent of Build-to-Rent?

The following example problems outline how to calculate the Estimated Rent of Build-to-Rent.

Example Problem #1:

  1. First, determine the total property cost ($). In this example, the total property cost ($) is given as 150000.
  2. Next, determine the total build cost ($). For this problem, the total build cost ($) is given as 200000.
  3. Finally, calculate the Estimated Rent of Build-to-Rent using the equation above: 

R = ( PC + BC) * .10

The values given above are inserted into the equation below:

R = ( 150000 + 200000) * .10 = 3500 ($)

Example Problem #2: 

The variables needed for this problem are provided below:

total property cost ($) = 60000

total build cost ($) = 120000

Entering these values and solving gives:

R = ( 60000 + 120000) * .01 = 1800 ($)