Vacancy Rate Calculator

Frequently Asked Questions

What is a normal vacancy rate for rentals?

The national average vacancy rate for residential rentals is typically 5–7%. In tight markets like major urban cores, it can be 2–4%. In rural or high-supply markets, it may exceed 10%. Always underwrite with a vacancy assumption even if your units are currently occupied.

How does vacancy affect my cash flow?

Every vacant unit-month is lost income you can never recover. A single vacant unit at $1,500/month costs $18,000 in annual gross rent. When underwriting, most investors use a 5–10% vacancy factor applied to gross scheduled income even when fully occupied.

What's the difference between vacancy rate and occupancy rate?

They are inverses: Occupancy Rate = 100% − Vacancy Rate. A 7% vacancy rate means 93% occupancy. Both metrics describe the same phenomenon from opposite directions.

How can I reduce my vacancy rate?

Price competitively, keep the property well-maintained, respond quickly to maintenance requests (tenant retention), and start marketing units 30–60 days before a lease ends. Tenant turnover is the primary driver of vacancy.

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