Definition
The midpoint of all gross rents (contract rent plus utilities) paid for renter-occupied housing units in a specific geographic area.
Why It Matters
This is the most representative measure of the total typical monthly housing cost for renters, giving a clear indication of overall rental affordability when all essential housing expenses are considered.
Specific Relevance for Professionals:
Marketers
A crucial benchmark for understanding the complete financial commitment for renters in a target market. It helps apartment complexes price their units competitively, considering full costs, and marketers to target based on a realistic housing budget.
Researchers
Preferred over mean gross rent for studying typical overall rental market conditions and true housing affordability. It's a key metric in analyses of economic accessibility for renters.
Consultants
Crucial for real estate investment firms evaluating the true cost of renting and potential returns, or for advising clients on new rental developments that meet typical gross rent affordability thresholds.
Public Policy Workers
A vital metric for assessing overall rental housing affordability, identifying areas with critical housing cost burdens for renters, and informing rental assistance programs that account for all housing expenses.
