How Much Will My Home Rent For? 6 Ways to Calculate a Fair Rent Price

Leveraging online tools

Start by using HomeLight’s home value estimator or a similar tool to determine your home’s preliminary value. These resources will give you a ballpark picture of your home’s worth and provide a solid starting number to work with.

Consider the supply and demand

Home values change, and sometimes change quickly, when supply is low and demand is high, and vice versa.

• If housing prices are up and the inventory is low, the demand for rentals also goes up.
• When housing prices are low, and there is more inventory, demand for rentals typically goes down.

But, according to Cosmo Spellings, a real estate agent with over 19 years of experience in the Florida panhandle area, you can only expect about a 10% fluctuation up or down in rental prices as housing markets shift.

So, if a property rents for $1,000 a month in a normal market, he says you could expect to get $1,100–$1,150 in a high market.

How to set your rent

Leveraging online tools

Start by using HomeLight’s home value estimator or a similar tool to determine your home’s preliminary value. These resources will give you a ballpark picture of your home’s worth and provide a solid starting number to work with.

Consider the supply and demand

Home values change, and sometimes change quickly, when supply is low and demand is high, and vice versa.

• If housing prices are up and the inventory is low, the demand for rentals also goes up.
• When housing prices are low, and there is more inventory, demand for rentals typically goes down.

But, according to Cosmo Spellings, a real estate agent with over 19 years of experience in the Florida panhandle area, you can only expect about a 10% fluctuation up or down in rental prices as housing markets shift.

So, if a property rents for $1,000 a month in a normal market, he says you could expect to get $1,100–$1,150 in a high market.

How to set your rent

For homes worth significantly less than the median U.S. value, you probably want to set a rental price closer to 1.1%. For homes worth more, 0.8% is perhaps a more realistic rent price.

Consider the housing market and the level of supply and demand in your area. If there is a high demand for rental homes, you can set the price a little higher, but if demand is low, you may need to make the home more appealing with a lower rental rate.

Method 2: Set rent using comps

Similar to how you, an agent, or an appraiser can use comps to determine home value, you can also use comparable rental properties to determine the rent price.

Determine rental comps by researching similar properties

To determine rental comps, find rental homes comparable to yours in size, age, features, location, and condition that are renting and evaluate their current rent.

There are numerous ways to research rental comps, but start by searching local rental listings in print publications and online sources. Additionally, sales prices might help you gauge how the market looks as well. You can also reach out to other landlords or property management companies to see what their rental rates are. There’s also value in joining online forums for landlords.

How to set your rent

The key features to examine in comps are the square footage, number of bedrooms, number of bathrooms, and its location, Kutter says.

Lock emphasizes the importance of location, saying, “Location drives so much, so you really have to take that into account and be looking primarily at rentals that are close to the subject property.”

In addition, Spellings says any recent renovations that increase home value or desirability should be considered as well. “Renters are more willing to pay a higher dollar in rent if the property is turnkey: new floors, new countertops, new appliances. It has that brand-new house feel,” he says.

Once you find a few rentals that are similar to yours, set your price. Make sure to keep in mind any unique features or upgrades your home has as well. So, if the house down the block is renting for $3,000, but your property offers upgrades or recent renovations, such as new hardwood floors or a fully remodeled kitchen, you may be able to set your price higher.