Rental Break-Even Calculator

Setting the Right Rent: Start with Break-Even

Before you decide what to charge for rent, you need to know your floor -- the minimum rent that keeps you from losing money. Many landlords set rent based on what they see on Zillow without verifying it actually covers their costs. This leads to years of subtle losses that erode investment returns without being noticed until a major repair hits.

Total your actual monthly costs -- mortgage, taxes, insurance, HOA, and a realistic maintenance reserve -- then divide by your occupancy rate (not 100%). If you expect to be vacant 8% of the time, your rent needs to cover costs as if you collected rent only 92% of the year. Set your actual asking rent 10-15% above this floor so that routine vacancies and minor repairs don't immediately eliminate your margin.