Real Estate Definitions  /  Potential Rental Income

What is Potential Rental Income?

Potential rental income is the total amount of rent a single family or multi-family property could generate if it was 100% leased at competitive rates.

Potential Rental Income is the gross rental income that the property could generate before reductions for Vacancy Loss.

How to Forecast & Calculate Potential Rental Income


As an example calculation, lets examine a quad-plex that has competitive market rental rates of $1,250/mo for each unit.  If the property were to be 100% leased, the Gross Potential Rental Income would be calculated as follows:

4 Units x $1250 per month = $5,000 in Monthly Potential Rental Income
$5,000 per month x 12 months per year = $60,000 in Annual Potential Rental Income
Download our Free Rental Property Spreadsheet to Calculate the Potential Rental Income & Analyze the Rental Cash Flow for your Rental Properties.