Rent
Market rent
The rent a unit would command today if offered to a new tenant in the current local market.
Glossary
Rent
What is market rent?
Primary references on this page:
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Freddie Mac Guide: comparable rent data and supported market rentMarket rent is an evidence-based estimate of what a willing tenant would pay for a unit today under current local conditions. It is not necessarily the rent in an existing lease, an advertised asking price, or HUD Fair Market Rent. When contract rent is below the current market estimate, the difference is often called loss to lease.
Landlords estimate market rent from recent leases and current listings for genuinely comparable units, then adjust for location, size, condition, utilities, parking, amenities, and lease terms. Use several comparables and record the date of the analysis. The estimate informs pricing; it does not override rent regulation, notice rules, or an existing lease.
Closed or executed lease evidence is generally stronger than an asking price because it shows an actual agreement, but private lease data can be harder to verify. Record the source and date for every comparable, distinguish asking from achieved rent, and explain each material adjustment rather than using a rule-of-thumb amount.
HUD Fair Market Rent is a program-specific gross-rent estimate used primarily for housing assistance and includes most tenant-paid utilities. It can be a useful benchmark, but it is not a landlord's automatic asking rent and does not replace a unit-level comparable analysis.
Build a dated rent-comparable grid
List the subject unit beside several relevant rentals. Compare location, unit type, bedrooms, bathrooms, size, condition, included utilities, parking, furnishings, amenities, lease date, lease length, and concessions. Mark unknowns instead of silently assuming they match.
Keep pricing, law, and existing contracts separate
Market evidence can inform a new asking price or an owner decision. It does not by itself authorize a rent increase for a current tenant. The lease, notice requirements, rent regulation, subsidy rules, and fair-housing obligations still control the action.
Market-rent evidence path
Move from a market-rent definition to an auditable comp range
A defensible estimate starts with a frozen subject profile, documented inclusion rules, normalized concessions, supported adjustments, and an explicit uncertainty range.
Definition
Rental comparables
How nearby, recent, and sufficiently similar rental evidence supports an estimate.
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Guide
Estimate market rent with comparables
A unit-level inclusion, normalization, range, and review workflow for small landlords.
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Guide
Build a rental comp adjustment grid
Record why each comp differs and express adjustments as supported ranges.
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Tool
Market-rent comparables workbook
Organize subject facts, comp evidence, concessions, adjustments, and uncertainty.
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