Enter the rent of comparable unit 1 (\$), the rent of comparable unit 2 (\$), and the rent of comparable unit 3 (\$) into the calculator to determine the Fair Market Value Rent.

## Fair Market Value Rent Formula

The following formula is used to calculate the Fair Market Value Rent.

FMR = (R1 + R2 + R3) / 3

• Where FMR is the Fair Market Value Rent (\$)
• R1 is the rent of comparable unit 1 (\$)
• R2 is the rent of comparable unit 2 (\$)
• R3 is the rent of comparable unit 3 (\$)

## How to Calculate Fair Market Value Rent?

The following example problems outline how to calculate Fair Market Value Rent.

Example Problem #1

1. First, determine the rent of comparable unit 1 (\$). In this example, the rent of comparable unit 1 (\$) is given as 5000 .
2. Next, determine the rent of comparable unit 2 (\$). For this problem, the rent of comparable unit 2 (\$) is given as  4000 .
3. Next, determine the rent of comparable unit 3 (\$). In this case, the rent of comparable unit 3 (\$) is found to be 3000.
4. Finally, calculate the Fair Market Value Rent using the formula above:

FMR = (R1 + R2 + R3) / 3

Inserting the values from above yields:

FMR = (5000 +4000 + 3000) / 3 = 3000.00 (\$)

Example Problem #2

The variables needed for this problem are provided below:

rent of comparable unit 1 (\$) = 2000

rent of comparable unit 2 (\$) = 2750

rent of comparable unit 3 (\$) = 2200

Entering these values and solving gives:

FMR = (2000 + 2750 + 2200) / 3 = 2316.66 (\$)