Enter the number of rentable units and the average rent per unit ($/unit) into the calculator to determine the Potential Rent. ## Potential Rent Formula The following formula is used to calculate the Potential Rent. Rp = #U * AR • Where Rp is the Potential Rent ($)
• #U is the number of rentable units
• AR is the average rent per unit ($/unit) ## How to Calculate Potential Rent? The following example problems outline how to calculate Potential Rent. Example Problem #1: 1. First, determine the number of rentable units. In this example, the number of rentable units is given as 150. 2. Next, determine the average rent per unit ($/unit). For this problem, the average rent per unit ($/unit) is given as 1000. 3. Finally, calculate the Potential Rent using the equation above: Rp = #U * AR The values given above are inserted into the equation below: Rp =150 *1000 = 150,000 ($)

Example Problem #2:

The variables needed for this problem are provided below:

number of rentable units = 200

average rent per unit ($/unit) = 1500 Entering these values and solving gives: Rp = 200 * 1500 = 300,000 ($)