The Comprehensive Guide to

Passive Income Investing


Learn the secrets of how Paul Tracy generates over $XXX,XXX per month in passive income!

How to Become Financially Independent Through Passive Income Investing

What is a Vacancy Rate?

Vacancy rate is the ratio of rental units not rented versus the total number in the building, city, state, etc.

How Does a Vacancy Rate Work?

The formula for vacancy rate is:

Vacancy rate = Units not rented out / Total units

For example, let's assume that Company XYZ owns an apartment building that has 300 units. Of those units, 25 are not rented out. Using this information and the formula above, we can calculate that Company XYZ's vacancy rate is:

Vacancy rate = 25/300 = 8.33%

Though our example uses units as the basis for calculating vacancy rate, it is possible to use square feet or rent dollars instead.

Why Does a Vacancy Rate Matter?

The vacancy rate is equal to 1 - Occupancy rate. In our example, the occupancy rate would equal 1 - 0.0833 = 91.67%.

Ask an Expert about Vacancy Rate

All of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Vacancy Rate.

Be the first to ask a question

If you have a question about Vacancy Rate, then please ask Paul.

Ask a question
Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.