Equitable Rent Calculator

Formula

The formula to calculate the Equitable Rent (R) is:

\[ R = \frac{V \times P}{100} \]

Where:

Equitable Rent (R): The fair market value of rent that should be charged for a property.
Total Property Value (V): The total value of the property.
Fair Market Rent Percentage (P): The percentage of the property value that represents fair market rent.
Significance: Ensures the rent charged is proportional to the property value, providing a fair return on investment while remaining affordable for tenants.

Let's say the total property value (V) is 500,000 currency units and the fair market rent percentage (P) is 5%. Using the formula:

\[ R = \frac{500,000 \times 5}{100} = 25,000 \]

So, the Equitable Rent (R) is 25,000 currency units.