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 — 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%+