Rental Property Vacancy Budget 2027 Calculator
Budget for rental vacancy 2027 — 5-12% standard, more in high-turnover markets. Include re-leasing costs (marketing, repairs, fee).
Vacancy Rate Benchmarks
Stable Class A market: 4-6%. Class B: 6-9%. Class C: 9-12%. Hot markets briefly under 4%. College towns: spike Aug. Snowbird markets: spike summer.
Turnover Costs Itemized
Marketing $50-200. Cleaning $200-400. Touch-up paint $300-600. Carpet cleaning $150-300. Repairs $200-500. Leasing fee 50-100% of one month rent. Total: $1,000-2,500.
Reducing Vacancy
Renew leases 60-90 days early. Offer renewal incentive ($50/mo off vs new tenant turnover cost). Stable, lower rent better than churn at top rent.
Insurance for Vacancy
Standard landlord insurance EXCLUDES if vacant > 60 days. Buy vacant property insurance separately. Premium 1.5-2x normal.
Source: biggerpockets.com vacancy budgeting, narpm.org property management data. Last updated: May 2026.
Frequently Asked Questions
Why vacancy hurts more than expected?
Mortgage + tax + insurance + utilities continue. ONE empty month at $2,400 rent = $200 expense difference. Margin gone.
Best lease length?
12-15 months. Avoid summer end-dates (worst leasing season). Plan for May-Sep moves.
Section 8 lower vacancy?
Yes — Section 8 vacancies often <2% (10x faster fill). But Section 8 has bureaucracy + tenant quality variability.