Fair Market Rent Renewal Calculator

FMR renewals bridge lease to market.

Expiring rent PSF

Market rent PSF

Renewal term years

Discount rate %

Renewal PV

$1,771,285

Annual rent at renewal

$432,000

Rent impact vs expiring

$480,000

How the math works

Annual = market × SF. Renewal PV = sum discounted over term. Impact vs expiring = (new − old) × years.

$36 × 12k = $432k/yr. 5-yr PV at 7% = $1.77M. Impact vs $28: +$480k face over 5 yr.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Fair Market Rent Renewal Calculator is built to give a quick, browser-based estimate for fair market rent renewal. FMR renewals bridge lease to market. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the fair market rent renewal result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this fair market rent renewal estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter expiring rent PSF.
Enter market rent at renewal PSF.
Enter SF.
Enter renewal term years.
Enter discount rate.
Read renewal NPV impact.

Frequently Asked Questions

FMR mechanics?

Tenant has option to renew. Rent for renewal set at Fair Market Rent (FMR) determined by independent appraisers or mutual agreement. Protects both parties from being locked into below- or above-market rates.

Determination process?

Landlord + tenant each propose FMR. Gap: third-party appraiser selected. Appraiser submits FMR. Often 'baseball' arbitration (pick higher/lower of two submissions). Decided within 60-120 days typically.

Renewal economics?

If market < existing rent, tenant renews at lower rate. If market > existing, tenant may extend or shop around. Typical renewal: 5-10 year additional term, 95-105% of FMR. Mutually beneficial in most mid-market scenarios.