Fair Market Value Rent Calculator
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The Fair Market Value Rent Calculator helps determine the fair market value of a rental unit based on the average rent of three comparable units. By comparing similar properties, you can accurately estimate a competitive rent price for your property.
Fair Market Value Rent Formula
The formula to calculate the Fair Market Value Rent (FMR) is:
\[
\text{FMR} = \frac{\text{R1} + \text{R2} + \text{R3}}{3}
\]
Where:
- R1 is the rent of comparable unit 1
- R2 is the rent of comparable unit 2
- R3 is the rent of comparable unit 3
Example Calculation
If the rents for three comparable units are $1200, $1300, and $1100, the Fair Market Value Rent would be calculated as follows:
\[
\text{FMR} = \frac{1200 + 1300 + 1100}{3} = \frac{3600}{3} = 1200 \text{ dollars}
\]
This provides a fair estimate of what the market would support for a similar rental unit, allowing landlords to set competitive and reasonable rental prices.