Calculate Occupancy and Vacancy Rates

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FLORIDA REAL ESTATE SALES ASSOCIATE COURSE

The Real Estate Markets And Analysis

Section 10 of 11

To measure the health of a rental market, you calculate occupancy and vacancy rates. If an apartment building has 100 units and 95 are rented, the occupancy rate is 95%. The vacancy rate is the inverse: 5 units are empty, so the vacancy rate is 5%. High vacancy rates usually signal an oversupply, forcing landlords to lower rents to attract tenants.