Where does a dollar of rent go?

Often, rent increases are misinterpreted as excess profits. However, nearly 90% of each rent dollar is consumed by fixed, non-discretionary costs such as mortgage payments, property taxes, operating expenses, payroll and capital expenditure reserves.

By standardizing these expenditures into a per-dollar-of-rent format, the Dollar of Rent Tool reframes the conversation, offering stakeholders a reliable and transparent view of the true economics of rental housing.

The Dollar of Rent Tool provides a breakdown of $1 of rent at the national level, across 44 states, the District of Columbia and nearly 100 markets. Additionally, the data is categorized by property type, rent type, property size and property age, based on the availability of data for specific geographies.

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Nationally, 89 cents of every rent dollar is allocated to expenses such as mortgages, taxes, payroll and operational costs.