Enter the home value ($) into the Calculator. The calculator will evaluate the Optimal Rent. 

Optimal Rent Formula

OR = .20 * HV / 12

Variables:

  • OR is the Optimal Rent ($/month)
  • HV is the home value ($)

To calculate Optimal Rent, multiply the home value by 20%, then divide by 12 to get the result in monthly rent.

How to Calculate Optimal Rent?

The following steps outline how to calculate the Optimal Rent.

  1. First, determine the home value ($). 
  2. Next, gather the formula from above = OR = .20 * HV / 12.
  3. Finally, calculate the Optimal Rent.
  4. 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.

home value ($) = 560000