Maximum Fair Rent Calculator

Calculate Maximum Fair Rent







Formula

The formula to calculate the Maximum Fair Rent (R_{max}) is:

\[ R_{max} = (R_{current} \times (1 + i)) + \left(\frac{C_{improvements}}{N}\right) \]

Where:

Definitions

Example

Let's say the current rent (R_{current}) is $1000, the inflation rate (i) is 0.03, the cost of improvements (C_{improvements}) is $5000, and the number of years (N) is 10. Using the formula:

\[ R_{max} = (1000 \times (1 + 0.03)) + \left(\frac{5000}{10}\right) \]

We get:

\[ R_{max} = (1000 \times 1.03) + 500 = 1030 + 500 = 1530 \, \text{dollars} \]

So, the maximum fair rent is $1530.