Average Rent Calculator

Formula

To calculate the average rent ($R_{ave}$):

\[ R_{ave} = \frac{RP1 + RP2 + RP3}{3} \]

Where:

$R_{ave}$ is the Average Rent ($)
$RP1$ is the rent of property 1 ($)
$RP2$ is the rent of property 2 ($)
$RP3$ is the rent of property 3 ($)

What is Average Rent?

Average rent refers to the mean value of the rent amounts for a given set of properties. It provides an estimate of the typical rent cost within a specific group or area, helping landlords and tenants understand the market rates.

Example Calculation 1

Let's assume the following values:

Rent of Property 1 ($RP1$) = $1200
Rent of Property 2 ($RP2$) = $1500
Rent of Property 3 ($RP3$) = $1300

Using the formula:

\[ R_{ave} = \frac{1200 + 1500 + 1300}{3} = \frac{4000}{3} \approx 1333.33 \]

The average rent is approximately $1333.33.

Example Calculation 2

Let's assume the following values:

Rent of Property 1 ($RP1$) = $1000
Rent of Property 2 ($RP2$) = $1100
Rent of Property 3 ($RP3$) = $1050

Using the formula:

\[ R_{ave} = \frac{1000 + 1100 + 1050}{3} = \frac{3150}{3} = 1050 \]

The average rent is $1050.