Occupancy Rate Calculator
Calculate occupancy rate percentage from occupied units and total units. Free, fast, and private.
How it works
Occupancy Rate = (Occupied Units ÷ Total Units) × 100. This measures the percentage of units that are currently rented and generating income.
Example
38 occupied units ÷ 40 total units × 100 = 95% occupancy rate.
Market Benchmarks
Class A Properties: 90-95% (newer, well-located, premium amenities)
Class B Properties: 85-90% (good condition, decent locations)
Class C Properties: 75-85% (older properties, workforce housing)
Geographic markets and economic conditions significantly impact these ranges.
FAQ
What is a good occupancy rate for rental properties?
Generally, 85-95% is considered good for multifamily properties. Class A properties often achieve 90-95%, Class B properties 85-90%, and Class C properties 75-85%. Market conditions and property type affect these benchmarks.
How is occupancy rate different from economic occupancy?
Physical occupancy rate measures actual occupied units, while economic occupancy considers rent collection. A unit may be occupied but if rent isn't collected, economic occupancy is lower.
What causes low occupancy rates?
Common causes include overpricing, poor property condition, bad location, inadequate marketing, economic downturns, or seasonal factors. Property management quality also significantly impacts occupancy.
Should I factor in vacancy when analyzing a property?
Yes, always account for vacancy in your analysis. Even well-managed properties experience 5-10% vacancy due to tenant turnover, maintenance periods, and market fluctuations.
How often should I track occupancy rates?
Monitor occupancy monthly for operational decisions and quarterly for performance analysis. Weekly tracking may be necessary during lease-up periods or market downturns.