The formula to calculate the Rent Charge is:
\[ RC = HV \times 0.01 \]
Where:
Rent Charge is the monthly rent payment based on the market value of the home. It is typically calculated as a percentage of the home market value. This helps in determining a fair rental price based on the value of the property.
Let's assume the following value:
Using the formula:
\[ RC = 300,000 \times 0.01 = 3,000 \text{ \$/month} \]
The Rent Charge is \$3,000 per month.
