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Rent Increase Impact Calculator
Analyze the financial impact of rent increases on property value and NOI
Input Parameters
Key Metrics
Incremental Monthly Rent
$5,000
$100 per unit
Incremental Annual NOI
$34,200
After vacancy & operating expenses
Implied Value Lift
$570,000
At 6.00% cap rate
Summary Comparison
| Metric | Before Increase | After Increase | Difference |
|---|---|---|---|
| Monthly Rent | $60,000 | $65,000 | $5,000 |
| Annual Gross Rent | $720,000 | $780,000 | $60,000 |
| Effective Gross Income (EGI) | $684,000 | $741,000 | $57,000 |
| Operating Expenses | $273,600 | $296,400 | $22,800 |
| Net Operating Income (NOI) | $410,400 | $444,600 | $34,200 |
| Implied Property Value | $6,840,000 | $7,410,000 | $570,000 |
Sensitivity Analysis
Analyze how changes in key assumptions impact your results
Cap Rate Impact on Value Lift
3%12%
| Cap Rate | Value Lift |
|---|---|
| 4.00% | $855,000 |
| 5.00% | $684,000 |
| 6.00% | $570,000 |
| 7.00% | $488,571 |
| 8.00% | $427,500 |
Vacancy Rate Impact on Incremental NOI
0%20%
| Vacancy Rate | Incremental NOI |
|---|---|
| 0.00% | $36,000 |
| 2.50% | $35,100 |
| 5.00% | $34,200 |
| 7.50% | $33,300 |
| 10.00% | $32,400 |
Important Disclaimer
This calculator provides estimates only and should not be considered financial advice. Actual results may vary significantly based on market conditions, tenant acceptance of rent increases, lease terms, local rent control regulations, and other factors. This tool does not account for financing costs, taxes, or other property-specific considerations. Consult with qualified financial and real estate professionals before making investment decisions.