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Market Rent
Market rent estimates the rent a property could command, supported by evidence from comparable rental properties.
Market rent is an estimate of the rent a property could command in its rental market. For a monthly rental, comparable properties with monthly lease rates provide evidence for that estimate.
Property operations example: record the comparison date and the rental properties used to support a monthly estimate. Keep that estimate separate from the amount specified in an existing lease.
Source: Fannie Mae, June 2024 Appraiser Update, Short-term rentals and Form 1007.
Frequently Asked Questions
Does an advertised asking rent establish market rent by itself?
An asking rent is one piece of evidence. A supported estimate also considers comparable rental properties and the basis of comparison.
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