Fair market rental value

Fair market rental value

Fair market rental value is just another step in the process of evaluating your investment property!

Rental values in most areas vary over time, market location, population need, community growth and community cost of living!

Rental values can also serve as an indicator of new and upcoming communities to invest in and serve as an indicator of a declining market.

Fair market rents are generally based on comparable rents in the area of investment but one should use common sense in this evaluation just as one would with comparables to determine the retail value of a subject investment.

We call this “Apples to Apples - Oranges to Oranges” evaluation. The comparable needs to be in likeness and location of the subject property you are trying to compare.

One way to determine the fair market value is to ask a real estate agent in the area for comparative rentals.

As an investor in some areas of investment you can gain more profit from a real estate say not only from the retail side of property but by adding an income approach in the valuation can produce a larger sales price. The income approach, the value of the property is estimated using the income, the property is expected to produce in the future.

You will find that this method is mostly used on commercial and multi unit property types but works well when selling a property that a buyer wants to hold and rent.

You will find a great web site with tons of data free at:

Thanks for the info.

We like to keep our rents near market value. Seems every time we raise rents, we are still low. It’s a nice market to be in, that’s for sure.

It’s not often we as posters get a written thank you as most use information with out a verbal or written thanks.

It the simple things in like that add up! Moreover, this one simple thank you truly is appreciated.

The purpose is a simple process of helping one another to grow and become more successful.

More than welcome, I have yet to buy my first property but everyday i come to this site and read read read i do…and everyday i learn something b/c everyone here is helping each other in one way or another…and b/c of it at 11am 8-13-05 i will meet with a realitor to look at my first potintail rental property and if al goes well i will cash flow 91 month and have instant eq of about 25k not bad for first time investment with 0 money, but i could have NOT done it on my own thanks to you and all members “I will exceed my wifes expectations”…lol


Congratulations and good luck on your investments :slight_smile: