Vacancy Rate Calculator

Find the share of units sitting empty and your occupancy rate.

Vacant units

units

Total units

units

Results update as you type.

Vacancy rate

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Occupancy rate—

How it works

Vacancy rate is the share of a rental property's units that sit empty and earn no rent, and it is one of the most closely watched health indicators in real estate. A vacancy rate calculator divides the number of vacant units by the total number of units and returns both the vacancy rate and its mirror image, the occupancy rate. For a landlord, an underwriter, or an analyst, these two percentages capture at a glance how fully a property is performing. The number matters because empty units are pure lost income while expenses like taxes, insurance, and maintenance keep running regardless. A property may look profitable at full occupancy, but a persistently high vacancy rate quietly erodes the rent that supports its value and its debt. Lenders build an assumed vacancy allowance into their underwriting precisely because no property stays perfectly full forever, and a realistic vacancy figure keeps income projections honest. The calculation works because occupancy is binary at the unit level: each unit is either rented or not, so counting the empties against the total gives a clean proportion. Comparing a property's vacancy rate against the local market average reveals whether its emptiness is a market-wide condition or a property-specific problem with pricing, management, or condition. Investors track the trend over time, since a rising vacancy rate is often the first sign that rents are set too high or that a neighbourhood's demand is softening.

Formula

Vacancy rate = vacant units ÷ total units × 100; occupancy = 100 − vacancy

Dividing vacant units by the total number of units gives the fraction of the property that is currently generating no rent, expressed as a percentage. Because every unit is either occupied or vacant, the occupancy rate is simply the remainder, one hundred percent minus the vacancy rate. Together the two figures describe how fully a property is earning, which drives effective rental income and, through it, net operating income and value.

Source:Standard real estate formula

We review all our tools from time to time to ensure accuracy.

Worked example

Vacant units:3Total units:50

A 50-unit building with 3 empty units has a vacancy rate of 3 ÷ 50 = 6%, which means an occupancy rate of 94% — the share of units currently producing rent.

How to use this calculator

1
Enter your values
Enter vacant units and total units.
2
Adjust the options
Fine-tune any options to match your situation.
3
Read your result
Vacancy rate updates instantly as you type — no button to press.

Frequently asked questions

What is a healthy vacancy rate?

It depends on the market and property type, but many stabilised residential rentals aim for vacancy in the low-to-mid single digits, often around 5%. Some vacancy is normal and even healthy, since it reflects natural tenant turnover and gives room to raise rents. A rate well above the local average signals a problem with pricing, condition, or management, while near-zero vacancy may mean rents are set too low.

How is vacancy rate different from occupancy rate?

They are two sides of the same measurement. Vacancy rate is the percentage of units empty, while occupancy rate is the percentage filled, and the two always sum to one hundred percent. If a property is 6% vacant, it is 94% occupied. Investors and lenders may quote either figure, so this calculator shows both to avoid confusion and let you present the number in whichever form your audience expects.

Should I measure vacancy by units or by rent?

This calculator uses a simple unit count, which works well when units are similar in size and rent. For properties with very different unit types, an economic vacancy rate weighted by potential rent gives a more accurate picture, because one empty large unit costs more than one empty small one. For a quick operational snapshot the unit count is fine; for detailed underwriting, consider the rent-weighted version too.

Why do lenders assume a vacancy allowance?

No property stays fully occupied indefinitely, so lenders deduct an assumed vacancy allowance from potential rent when underwriting a loan. This produces a conservative, realistic income figure rather than a best-case one, protecting the lender if some units sit empty. Building a vacancy assumption into projections keeps net operating income honest, which in turn affects how large a loan the property can support and how it is valued.

How can I lower my vacancy rate?

Common levers include pricing units in line with the local market rather than above it, keeping the property well maintained and attractive, responding quickly to enquiries, and offering lease terms that encourage renewals. Reducing tenant turnover is often cheaper than filling empties, since each vacancy carries make-ready costs and lost rent. Tracking your vacancy trend against the market helps you spot whether a rise stems from your property or from broader demand.