Fair Market Value Rent Calculator

The Fair Market Value Rent Calculator helps determine the fair market value of a rental unit based on the average rent of three comparable units. By comparing similar properties, you can accurately estimate a competitive rent price for your property.

Fair Market Value Rent Formula

The formula to calculate the Fair Market Value Rent (FMR) is:
\[ \text{FMR} = \frac{\text{R1} + \text{R2} + \text{R3}}{3} \] Where:

• R1 is the rent of comparable unit 1
• R2 is the rent of comparable unit 2
• R3 is the rent of comparable unit 3

Example Calculation

If the rents for three comparable units are $1200, $1300, and $1100, the Fair Market Value Rent would be calculated as follows:
\[ \text{FMR} = \frac{1200 + 1300 + 1100}{3} = \frac{3600}{3} = 1200 \text{ dollars} \]

This provides a fair estimate of what the market would support for a similar rental unit, allowing landlords to set competitive and reasonable rental prices.