Inputs
Example data table
| Scenario | Price | Rent / mo | Vacancy | Walk | DSCR | Result |
|---|---|---|---|---|---|---|
| Core urban | 300,000 | 2,600 | 5% | 86 | 1.35 | Good |
| Growing suburb | 240,000 | 2,050 | 6% | 72 | 1.22 | Good |
| High yield, higher risk | 170,000 | 1,750 | 12% | 55 | 0.98 | Fair |
Use examples as a starting point, then replace with your local data.
Formula used
1) Effective Rent
Effective Rent (annual) = Monthly Rent × 12 × (1 − Vacancy%).
2) Operating Expenses
Expenses = Tax + Insurance + HOA + Management + Maintenance + Capex + Utilities.
3) Net Operating Income (NOI)
NOI = Effective Rent − Expenses.
4) Cap Rate
Cap Rate (%) = NOI ÷ Purchase Price × 100.
5) DSCR
DSCR = NOI ÷ Annual Debt Service (amortized payment).
6) Weighted Overall
Overall = Σ(Scoreᵢ × Weightᵢ) ÷ Σ(Weightᵢ) + Liquidity Adjustment.
How to use this calculator
- Enter pricing, rent, and operating cost assumptions.
- Add market indicators like job and population growth.
- Enable financing to calculate DSCR and cash-on-cash.
- Choose a preset profile or set your own weights.
- Click Calculate to see the overall rating and tiers.
- Download CSV or PDF to compare multiple locations.
Scoring framework and normalization
This calculator converts local indicators into comparable 0–100 scores. Each metric is scaled within practical ranges, then combined using user weights. The overall score reflects balanced fundamentals, while a liquidity adjustment based on days on market nudges results for faster or slower selling conditions. Because weights are normalized, you can emphasize a single priority without rebalancing every field. Keep ranges aligned to your city.
Income and growth signals
Median income, job growth, and population growth capture purchasing power and demand expansion. Higher values typically support rent stability and resale depth. When income rises faster than inflation, landlords can maintain occupancy and reduce concessions. Use recent, local sources and keep assumptions conservative. If growth is volatile, run a low, base, and high case to see how sensitive the rating becomes.
Yield metrics and financing tests
Effective rent subtracts vacancy, then operating expenses build a realistic NOI. Cap rate measures unlevered yield, while price-to-rent highlights valuation pressure. If financing is enabled, the tool estimates annual debt service and DSCR to check whether cash flow covers payments. It also reports cash-on-cash return. A DSCR below 1.10 often signals tight underwriting, especially when expenses are uncertain.
Risk controls and liquidity context
Crime, disaster exposure, and regulatory risk reduce the score because they can raise costs, limit rent growth, or trigger unexpected vacancies. Transit, walkability, and school quality support tenant demand and reduce turnover. Days on market acts as a liquidity proxy; longer timelines usually indicate weaker buyer competition. Pair these inputs with insurance quotes, local zoning rules, and realistic repair reserves before committing capital.
Using exports for repeatable decisions
Run several scenarios by changing rents, expenses, and macro inputs. Export CSV to build a comparison sheet across neighborhoods and property types. Export PDF to archive deal reviews and share summaries with partners. Focus on the drivers that move the score most, then validate them with on-the-ground research. Over time, saved reports create a consistent decision log you can audit later.
FAQs
Q1: What does the overall score represent?
A: It summarizes weighted factor scores from 0 to 100, then adds a small liquidity adjustment from days on market. Higher scores suggest stronger fundamentals and lower risk, based on your assumptions and weights.
Q2: How should I choose weights?
A: Start with a preset that matches your strategy, then increase weights for your key constraints. For example, emphasize DSCR and vacancy for stability, or appreciation and rent growth for expansion. Keep a few runs to compare outcomes.
Q3: Why is price-to-rent included?
A: Price-to-rent highlights valuation pressure. A high ratio can mean you are paying too much for current income, even if the neighborhood feels strong. Lower ratios generally improve affordability and cash flow resilience.
Q4: When should I enable financing?
A: Enable it when you plan to borrow, so the calculator can estimate debt service, DSCR, and cash-on-cash. Use the rate and term you can realistically obtain, and include closing costs to avoid overstating returns.
Q5: How can I improve a low rating?
A: Improve assumptions only with evidence: negotiate price, raise rent based on comps, reduce vacancy with better marketing, or lower expenses through bids. If risks are structural, require a larger discount or choose a different location.
Q6: Are the results a guarantee?
A: No. The tool is a structured screening model, not a forecast. Inputs can be wrong, markets can change, and property-specific issues matter. Use it to prioritize research, then verify numbers locally before investing.