Market Rent

A market rent analysis (Form 1007 for single-family, similar for multifamily) determines the rent a property would command on the open market today. It’s used by lenders to qualify rental income for borrower income calculations, by investors to evaluate property economics, by landlords to set new lease rates, and in disputes (rent control, partition, divorce) where current market rent matters.

We analyze: recent comparable rental listings and signed leases in the immediate area, rent per square foot trends, market vacancy rates, time-on-market patterns, and concessions (move-in specials, free months). Adjustments are made for differences in size, condition, amenities, parking, location within the market, and any rent-controlled status. The result is a documented market rent opinion supported by comparable data.

Market rent is what the property would command today on the open market. Contract rent is what the current tenant is actually paying under their existing lease. These can differ significantly — below-market rents are common in rent-controlled units or long-term tenancies; above-market rents may occur if a tenant signed during a market peak. Both are useful in income analysis but serve different purposes.

Yes. For rent-controlled units, we analyze both: (a) the maximum allowable rent under the applicable RSO (Rent Stabilization Ordinance) for the existing tenant, and (b) the market rent that would apply if the unit were vacant and re-leased. Both numbers matter for investment analysis, refinance underwriting, and dispute resolution involving rent-controlled property in LA County.

Standalone market rent analyses (1007 forms) typically take 2–4 business days. When ordered as part of a full income property appraisal, the rent analysis is included in the overall report. Rush options are available for time-sensitive lender deadlines.