1. What is Fair Market Rent?

Fair Market Rent (FMR) represents the estimated amount a property would rent for on the open market. It's calculated by averaging comparable apartment rents adjusted for differences in features and amenities.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Comparable Apartment Rents — Actual rents of similar properties in the same area
• Feature Adjustments — Value added or subtracted for differences in features (square footage, amenities, etc.)

Explanation: The calculator averages 2-3 comparable rents and adds any feature adjustments to determine a fair market value.

3. Importance of Fair Market Rent

Details: FMR is crucial for landlords setting rental prices, tenants evaluating lease offers, and government agencies determining housing assistance levels.

4. Using the Calculator

Tips: Enter at least 2 comparable rents from similar properties in your area. Include feature adjustments for differences (e.g., +$50 for parking, -$100 for smaller size).

5. Frequently Asked Questions (FAQ)

Q1: How many comparables should I use?
A: Ideally 3-5 comparables, but this calculator accepts 2-3. More comparables provide a more accurate estimate.

Q2: What features should I adjust for?
A: Common adjustments include square footage, number of bedrooms/bathrooms, amenities (parking, laundry), and property condition.

Q3: How recent should comparable rents be?
A: Use rents from the past 3-6 months for most accurate results, as rental markets can change quickly.

Q4: Does location affect fair market rent?
A: Yes, comparables should be from the same neighborhood or similar areas to be meaningful.

Q5: How often should fair market rent be recalculated?
A: Typically every 6-12 months, or whenever significant market changes occur.