how do you determine fair rental value for a property?

REI101 · BiggerPockets Forum Newbie Posts: 14

Just wondering if there is a web site or how people look at a house and determine what rents are going for in the area. I have tried realtor.com searched rentals in my zipcode but just wondering how others do it.

TN-Apprentice · BiggerPockets Fanatical Poster Posts: 254 Location: TN

You can try out rentometer:

http://www.rentometer.com/

Not sure how accurate or useful it is, but it's fun to play with (apparently I'm offering a "good deal.")

If you're thinking Section 8 at all, you can look at their "Fair Market Rent" page:

http://www.huduser.org/datasets/fmr.html

REI101 · BiggerPockets Forum Newbie Posts: 14

I have seen the section 8 fair rental rates before but i find it hard to believe that if they pay up to 1500 a month for a 3 bedroom then i can go get a POS 3 bedroom for 25k and rent it for 1500. There has to be more to it then that.

I want to look into the whole section 8 thing. I just need to find out the combination to the 1500 a month payment thing.

thanks

REI101 · BiggerPockets Forum Newbie Posts: 14

I am renting out my house for lower then average rent in the area. by 150 a month. dammit. nic elink if it holds water.

graff50 · BiggerPockets Forum Newbie Posts: 18 Location: maine

i just pick up the local paper and check out what other landlords are getting. sometimes i even go and check out other rental properties to see what shape they are in for the money. if you call and be upfront, i found that most other landlords will be helpful.

dal1 · BiggerPockets Voracious Poster Posts: 524

In our city, a university town, the best and closest neighborhoods can get from $1150 to $1500 for a group of students. A working professional might pay $750 for a 2 bedroom apartment or a small house. Obviously, you must have real experience to manage multiple person rental and in nice neighborhoods they really hate this type of rental. This spring was the first time rents have been decent in years. This fall is terrible. It picks up in January but the best rental months are July and August. If you are 2-3 miles from the university and downtown no students want to rent your house or apartment.

We're in S.C. and have fixed up property but it has been very hard to get good tenants lately and adequate potential tenant traffic these past few months.

Realtors are not interested in FM rents. It isn't an interest unless they own rental property or cater to investors.