Free tools
Vacancy Loss Calculator
Quantify the gap between gross potential rent and what actually hits the bank. Enter rent, vacancy, and credit loss, we'll show effective gross income and total income loss.
Your numbers
Separate vacancy from credit loss for cleaner pro forma.
Effective gross income
$165,600Standard
- Vacancy loss
- $10,800
- Credit loss
- $3,600
- Total loss %
- 8.00%
- Gross potential
- $180,000
How this is calculated
EGI = Gross potential − Vacancy $ − Credit loss $
Splitting vacancy from credit loss is what underwriters do. Lumping them together hides operational issues that hurt your refi or sale.
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Common questions
What's a normal vacancy rate?
Stabilized U.S. multifamily averages 5%–8% economic vacancy (physical vacancy plus loss-to-lease). Class-A urban can run 3%–5%; older Class-C in soft markets can hit 10%–15%. Always pull submarket-specific data, national averages mislead in tertiary markets.
What's the difference between vacancy and credit loss?
Vacancy is income lost to empty units. Credit loss is income lost to tenants who occupy the unit but don't pay (delinquencies, evictions, write-offs). Underwriting both separately makes you tighter than the lazy 5%-vacancy pro forma everyone ships.
How do I reduce vacancy loss?
Three levers: pre-leasing (start marketing 60 days before turn), turn time (target under 7 days from move-out to rent-ready), and pricing (the unit at 95% of market beats a vacant unit at 100%). Property management is the single biggest variable.
Should I underwrite zero vacancy if my unit is full now?
No. Even fully-leased buildings have turn vacancy when leases roll. Lenders, appraisers, and serious LPs will reject any pro forma with under 5% vacancy unless you've got a long-term corporate lease or master-tenant in place.
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