How do you define and calculate ‘Market Rent’?

So this ought to be interesting and I promise - no judgement. How do you define and calculate ‘Market Rent’

Market rent is the maximum rent you can charge and still achieve your minimum desired occupancy rate. It isn’t calculated as much as it is deduced - if you are not achieving your desired occupancy, you are probably asking more than market rent. If you are bumping up against 100% then your asking rents are probably under market. Of course this assumes competent leasing professionals, rent-ready units, Etc. The most reasonable place to start in determining your market rent is, of course, the competitive market set. Looking at other apartment buildings in the same area and making price adjustments for age, amenities, and location will at least give you a reasonable starting point. But it is an iterative and constantly changing data point from there on out. Incidentally, as apparent market rent changes I feel it should be readjusted in your PMS from time to time so that the loss to lease figure represents a more accurate estimate of upside revenue potential.

So in other words - what the market will bear for that unit type based on a a standard lease length

Very well put. The market rent for one property isn’t the same for the property across the street

Currently I research similar built complexes with same build year (within 1-3 years) .. in our city limit radius and then compare with us. .. I then look at high and lows and try to be the middle man currently as we have bout 14 new complexes within a mile going up

Market rent = max rent for unit. GRP=max rent per unit 100% occupancy . Start backing out loss to lease, vacancy loss, concessions, bad debt and you get Adjusted Gross Potential Rent.

For us it is typically pro forma. Sometimes it’s more or less depending on demand though.

And then there's the difference between the set "market rent" and "marketed rent."
Think they're the same thing? Just ask someone that manages PMS settings and uses rent optimization. They'll tell you...there is (should be) a difference!
Some might call it symantics, but it's a very important distinction, depending on your audience...

What the average rent is going for in your area for a similar community that offers around the same amenities and or services. We’re all band wagoners we charge what everyone else is charging

I love this thread as well and would like to add that a daily check in competitive markets, like my hometown Frisco, TX that is boooming. Bump up $10 or $20 on floorplans that are almost gone. In lease ups I tell my prospects that every time one leases, the rent goes up however much previously determined,on popular plans with very little available & it certainly gets heads on beds much faster!