Tiny Toolkit

Rent Projection Calculator

Projecting future rent helps landlords model long-term cash flow growth and plan for rent increases. Enter your current monthly rent, an annual growth rate, and a time horizon (up to 20 years) to see a year-by-year table of projected rents alongside total income collected over the period. The national average rent growth of 3–4% per year is a reasonable default, but local market conditions vary significantly.

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Frequently Asked Questions

What annual rent growth rate should I use?
The national average rent growth for residential properties has historically been 3–4% annually. Local markets vary widely; some metros have seen 8–10% growth in recent years, while others have been flat. Use 3% for conservative underwriting and your local market trend for a more specific projection.
Does rent actually grow every year?
Not necessarily. Rent growth can be flat or even negative during economic downturns or periods of high supply. However, over long periods, rents have generally trended upward in line with or faster than inflation.
How does rent projection affect property value?
In income-based property valuation, higher future rents directly increase NOI and therefore property value. A property worth $500,000 today with 3% annual rent growth may justify a significantly higher value in 10 years, driven by both rent increases and the cap rate compression that often follows income growth.
Why is the table limited to 20 years?
Beyond 20 years, compound growth projections become increasingly speculative. Small differences in assumed growth rates compound into large differences in outcomes, making 20+ year projections unreliable for decision-making. Use shorter time horizons for realistic planning.

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