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Real estate & rental

Real Estate Vacancy Rate Calculator

Vacancy and occupancy across a portfolio, by unit count and by rent value.

Your numbers

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Result

Physical vacancy rate 8.33%
Economic vacancy rate 1.10%
Occupancy 91.67%
Rent lost to vacancy $4,576
Gross potential rent $417,600
Physical vacancy is 8.33% right now, but economic vacancy across the year is 1.10%, costing $4,576 of the $417,600 gross potential rent.

An arithmetic tool, not financial or legal advice. Lending criteria, tax treatment and tenancy law all vary by state and change regularly. Confirm anything that affects a decision with a lender, an accountant or an attorney. Physical and economic vacancy differ, and economic is the more honest measure. A portfolio can show 4% physical vacancy on the day you count and 9% economic vacancy across the year, because units turn at different times and concessions reduce collected rent further.

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Questions

About this calculator

Which measure do lenders use?

Usually economic, or their own minimum assumption, whichever is worse for you. Physical vacancy on a single day is easy to time favourably.

What is a normal vacancy rate?

Highly market dependent. Five percent is a common underwriting assumption in stable markets, but student, seasonal and short-term rentals behave completely differently.

The formula

physical vacancy = vacant units / total units; economic vacancy = rent lost / gross potential rent

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Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.