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Break-even Occupancy Stress Test Calculator

Break-even occupancy is the occupancy % that just covers opex and debt service. This stress test shows how the break-even rises under rate shock and rent decline so you know how much cushion you have.

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Stressed break-even occupancy

92.39%

Base break-even occupancy

75.00%

Points worse under stress

17.39

Stressed GPR

$920,000

How the math works

Break-even occupancy = (opex + debt service) ÷ GPR. Stress adds rate shock and rent decline to show how much thinner the cushion gets.

If stressed break-even exceeds your realistic occupancy ceiling (say 95%), you don't survive the stress — and that's the scenario to plan for.

How to Use

  1. Enter gross potential rent and opex.
  2. Enter current debt service.
  3. Enter rate-shock debt service (higher).
  4. Enter rent decline %.
  5. Read base and stressed break-even occupancy.

Frequently Asked Questions

How much cushion is enough?

A 10-point gap between actual occupancy (say 93%) and break-even (say 83%) is comfortable. Under 5 points is dangerous. Under 3 points is distress-flag territory.

When does break-even spike?

Floating-rate debt resetting higher. Insurance doubling. Property tax reassessment. These often happen simultaneously in challenged markets and break-even can jump 10+ points overnight.

Is break-even > 100% possible?

Yes — that means even 100% occupancy doesn't cover debt + opex. The deal is already upside-down. Lenders demand a workout, modification, or sale.

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