Investor tools
Vacancy Scenarios
Every month a unit sits empty, fixed costs and the mortgage are still due. See how vacancy changes your results and how much of the year the property can sit empty before it stops covering its costs.
The figures shown are example values. Replace them with your own; rates, taxes and insurance vary by lender, property and municipality.
Break-even occupancy
92.2%
- Most vacancy before negative cash flow
- 7.8%
- That is about
- 0.9 vacant months a year
| Vacancy | Vacant months / year | Income after vacancy (monthly) | NOI (yearly) | Cash flow (monthly) | DSCR | Cash-on-cash |
|---|---|---|---|---|---|---|
| 0% | 0.0 | $2,400 | $20,196 | $186 | 1.12× | 2.7% |
| 5% | 0.6 | $2,280 | $18,756 | $66 | 1.04× | 0.9% |
| 8% | 1.0 | $2,208 | $17,892 | −$6 | 1.00× | -0.1% |
| 10% | 1.2 | $2,160 | $17,316 | −$54 | 0.96× | -0.8% |
| 15% | 1.8 | $2,040 | $15,876 | −$174 | 0.88× | -2.5% |
| 20% | 2.4 | $1,920 | $14,436 | −$294 | 0.80× | -4.2% |
| 25% | 3.0 | $1,800 | $12,996 | −$414 | 0.72× | -5.9% |
How this is calculated
- Break-even occupancy(Fixed costs + mortgage) ÷ (gross income × (1 − management %))
- 92.2%
Fixed costs are taxes, insurance, fees, utilities and maintenance; they are owed whether or not the home is rented.
Estimates for information only, not loan offers, appraisals or tax advice. Every input is checked against a stated range, and the formulas are shown under “How this is calculated”. More tools: all investor tools.
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