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 ($)