Rent Roll Analysis Calculator

A rent roll is a financial document listing all rental units in a property, their current rent, lease terms, tenant names, and vacancy status. It is the single most important document in real estate investment analysis, and lenders, appraisers and buyers all request it during due diligence.

Key rent roll formulas:

Gross Potential Rent (GPR) = Sum of all units × their market rent × 12
Effective Gross Income (EGI) = GPR × (1 − Vacancy Rate)
Net Operating Income (NOI) = EGI − Operating Expenses
Cap Rate = NOI / Property Value × 100
Gross Rent Multiplier (GRM) = Property Price / Annual GPR

What each variable means:

• GPR: theoretical maximum annual rent if every unit is rented at full market rate with zero vacancy
• Vacancy Rate: percentage of units empty at any time; industry standard assumption is 5–10% for stable markets
• Operating Expenses: property taxes, insurance, maintenance, management fees, utilities (landlord-paid), landscaping; typically 35–50% of EGI
• NOI: the profit before debt service (mortgage payments); used to value commercial properties
• Cap Rate: the yield on the property if purchased all cash; higher cap rate = higher yield (and usually higher risk)

Worked example:

12-unit apartment building: 10 units at $1,200/month, 2 units at $1,500/month.

GPR = (10 × $1,200 + 2 × $1,500) × 12 = ($12,000 + $3,000) × 12 = $180,000/year
Vacancy (8%): $180,000 × 0.92 = $165,600 EGI
Operating Expenses (40%): $165,600 × 0.40 = $66,240
NOI = $165,600 − $66,240 = $99,360
At a 6% cap rate: Property Value = $99,360 / 0.06 = $1,656,000
GRM = $1,656,000 / $180,000 = 9.2×

Reference cap rates by market (2024):

• Tier 1 cities (NYC, LA): 4–5% | Tier 2 cities: 5–7% | Tertiary markets: 7–9%+