Enter the area of the property in square feet and the price per square foot into the calculator to determine the market rent. This calculator helps landlords and real estate professionals estimate the rental value of a property.
Market Rent Formula
The following formula is used to calculate the market rent.
MR = A * P
Variables:
- MR is the market rent ($)
- A is the area of the property (square feet)
- P is the price per square foot ($)
To calculate the market rent, multiply the area of the property by the price per square foot.
What is Market Rent?
Market rent is the estimated amount that a property would rent for on the open market. It is a critical figure for landlords and investors to determine the potential income from a rental property. Market rent is influenced by various factors including location, property condition, local demand, and comparable rents in the area.
How to Calculate Market Rent?
The following steps outline how to calculate the Market Rent.
- First, determine the area of the property (A) in square feet.
- Next, determine the price per square foot (P) in dollars.
- Next, gather the formula from above = MR = A * P.
- Finally, calculate the Market Rent (MR) in dollars.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
Area of the property (A) = 1200 square feet
Price per square foot (P) = $1.25