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Occupancy Rate Calculator

Calculate physical occupancy rate for a single rental or full portfolio, either from unit-months of vacancy or directly from a vacancy rate.

$

Occupancy rate

93.75%

Vacancy rate

6.25%

Occupied unit-months

135

of 144 total

Rent lost to vacancy

$14,850

About occupancy rate

Physical occupancy = occupied unit-months ÷ total unit-months. Economic occupancy adjusts for concessions and delinquency. Most stabilized US rentals hover between 92% and 96% physical occupancy.

How to Use

  1. Pick the mode that matches your data: unit-months (for portfolios) or a direct vacancy rate.
  2. For unit-months: enter units, months measured, and total unit-months vacant in that window.
  3. For vacancy rate: enter the vacancy percentage to flip it into occupancy.
  4. Review the resulting occupancy rate against stabilized benchmarks (92–96% is typical).
  5. Plug the occupancy rate into cash flow and cap rate analysis for realistic income assumptions.

Frequently Asked Questions

What is a good occupancy rate?

Stabilized single-family and small multifamily rentals in strong markets run 92–96% physical occupancy. Workforce housing and higher-turn markets typically run 88–92%. Under 85% suggests pricing or management issues.

Is occupancy the same as vacancy?

They're complements: occupancy rate + vacancy rate = 100%. Both are usually reported as percentages. Lenders and operators often prefer occupancy for marketing and vacancy for underwriting.

What's a unit-month?

A unit-month is one unit available for rent for one month. A 10-unit building over 12 months has 120 unit-months of capacity. If three units were each vacant for two months, that's 6 vacant unit-months.

How does economic occupancy differ?

Economic occupancy adjusts for concessions, loss-to-lease, and delinquency. A building can be 100% physically occupied while collecting 95% of market rent because of concessions. Economic occupancy is the more honest metric for cash flow.

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