Fair Market Value Rent Calculator

Formula

The formula to calculate the fair market value rent is:

\[ \text{FMR} = \frac{R1 + R2 + R3}{3} \]

Where:

FMR is the Fair Market Value Rent (\$)
R1 is the rent of comparable unit 1 (\$)
R2 is the rent of comparable unit 2 (\$)
R3 is the rent of comparable unit 3 (\$)

What is Fair Market Value Rent?

Fair market value rent refers to the average rent amount for comparable rental units in a specific area. This value helps determine a reasonable rent price for a property based on similar properties.

Example Calculation

Example:

Rent of Comparable Unit 1: $1,200
Rent of Comparable Unit 2: $1,300
Rent of Comparable Unit 3: $1,250

Step 1: Calculate the fair market value rent:

\[ \text{FMR} = \frac{1200 + 1300 + 1250}{3} = \frac{3750}{3} = 1250 \text{ dollars} \]