The midpoint of all contract rents paid for renter-occupied housing units in a specific geographic area. Half of the units have rents above this amount, and half have rents below it.
Provides the most representative measure of typical rental costs, as it is less affected by extremely high or low outliers. It's a key indicator of the average burden faced by renters for the dwelling itself.
Specific Relevance for Professionals:
Marketers
A crucial benchmark for understanding typical rental market pricing. It helps apartment complexes, real estate agents, and relocation services price their offerings competitively and target renters by price point.
Researchers
Preferred over mean contract rent for studying typical rental market conditions and trends. It's frequently used in analyses of housing affordability and the economic accessibility of rental housing.
Consultants
Crucial for real estate investment firms evaluating typical returns on rental properties, or for advising clients on developing or acquiring rental units for the average renter market.
Public Policy Workers
A key metric for assessing rental housing affordability, identifying areas with rapidly increasing rental costs, and informing rental assistance programs or rent stabilization policies.