BECOMING A LANDLORD
How much rent can I charge for my house?
Find 5–10 similar homes nearby that actually rented recently (not ones still listed), adjust for size, condition, parking, yard, and included utilities, and price within that range. Then watch the response: lots of inquiries in a few days means you're low; silence for two weeks means you're high. One empty month usually costs more than pricing a little under the top.
The rent you can charge isn't set by your mortgage, what you paid, or what you'd like to earn. It's set by what tenants in your area are paying for homes like yours. Here's how to find that number, and how to avoid the most expensive pricing mistake.
Step 1: Find real comparables
You're looking for 5–10 homes that are genuinely similar to yours:
- Close by — ideally within about a mile, in the same school district.
- Same bedrooms and bathrooms, similar square footage.
- Similar condition and age.
- Rented recently — the last few months. A home that's been listed for 60 days isn't a comparable; it's a warning.
Listing sites show current asking rents; local property managers and agents who handle rentals often know what homes actually leased for. If you know a few neighbors who rent out homes, ask.
Step 2: Adjust for what makes yours different
Line your home up against the comparables and adjust honestly:
| Feature | Typical effect |
|---|---|
| Extra bedroom or bathroom | Up meaningfully |
| Garage or off-street parking | Up, especially where street parking is scarce |
| Updated kitchen, in-unit laundry | Up |
| Fenced yard, pet-friendly | Widens your pool of applicants |
| Utilities included | Up by roughly what they cost |
| Dated finishes, no AC where it's expected | Down |
The goal isn't the highest number you can justify. It's the number a good tenant will look at and think, that's fair.
Step 3: Do the vacancy math
The most expensive pricing mistake is an empty month.
Worked example
Price at $2,500 and the home sits for six weeks: you've lost about $3,750 in rent. Price at $2,400 and it rents in a week: you give up $100 a month — $1,200 over a one-year lease — and still come out roughly $2,000 ahead, with less wear on your nerves.
Being a little under the top of the market also gets you more applicants, which means you can choose the best tenant rather than the first one.
Step 4: Test and adjust
Your listing tells you quickly whether you're right:
- A flood of inquiries in the first few days — you're probably under market.
- A steady handful of inquiries and showings — you're about right.
- Silence after two weeks — you're high, or the listing (photos, description) is the problem. Fix the photos first, then the price.
Things that shouldn't set your rent
- Your mortgage. Tenants don't know or care what you owe. If the market rent doesn't cover your costs, that's a signal to revisit whether to rent or sell — not to overprice.
- The 1% rule. It's a shortcut investors use to screen purchases, not a pricing method.
- Last year's rent, unchecked. Markets move in both directions.
Raising rent later
Most landlords review rent at each renewal. Know your local rules before you do: some states and cities limit increases or require longer notice. In Washington, for example: Washington limits rent increases for most rentals to the lesser of 7% plus inflation or 10% in any 12 months, bars any increase during the first 12 months of a tenancy, and requires at least 90 days' written notice on the state's form. Some newer buildings and other tenancies are exempt. Give notice in writing, explain it plainly, and remember that keeping a good tenant usually beats a modest increase that sends them looking.
Once you have a number, put it into the rent or sell calculator with every cost — that's when you'll know whether it works.
Common questions
How do I find out what my house would rent for?
Look at similar homes within about a mile — same bedrooms and bathrooms, similar size and condition — that rented in the last few months. Listing sites, local property managers, and agents who handle rentals are the best sources.
Is the 1% rule a good way to set rent?
No. The '1% rule' (monthly rent equals 1% of the purchase price) is an investor screening shortcut, not a way to price rent. Your rent is set by what comparable homes rent for, not by what you paid.
Should I price my rental high and lower it later?
Usually not. Overpriced listings sit, and every empty week costs real money. Pricing near the market and filling the home quickly with a good tenant usually comes out ahead.
General information, not legal or tax advice. Where we state a law, we link the statute and re-check it on a schedule; your city or county can add rules of its own.