CalculateRealEstateROI

Cash Flow

Vacancy Rate

Percentage of time units sit unoccupied or fail to collect rent.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Underwrite at 5-8% even in tight markets; rookie investors forget this entirely.

Examples

  • 1 month vacant per year = 8.3% vacancy.
  • Class A urban: 4-6%; Class C: 8-12%.

Common mistakes

  • Modeling 0% in a strong market.
  • Treating physical vacancy as economic vacancy.

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