Rent to Value (RTV, RTP)

A rate of return of a rental vehicle based on comparing the monthly gross rent to the purchase price or market value.

The rent to value ratio is used by the common 2% Rule.

 

How Is It Calculated?

At Purchase:
Rent to Value = Monthly Gross Rent / Purchase Price
 
Subsequent Years:
Rent to Value = Monthly Gross Rent / Market Value

Did this help answer your question?

thumbs up
thumbs down

Thanks for the feedback! 🙏🏽


Help by drift