US 2028 Vacancy Loss
2028 effective vacancy: market 5-7% + concessions + bad debt = 7-10% true loss. Budget at 8% to be safe. Track actual occupancy + turnover costs.
| Gross potential income | — |
| Physical vacancy | — |
| Effective vacancy | — |
| Net effective income | — |
| Total annual loss | — |
Rental property income reality 2028: gross potential income reduced by physical vacancy (no tenant) + economic vacancy (concessions, bad debt, eviction). Plan at 7-10% effective vacancy vs market reports' 4-5% physical vacancy. Conservative underwriting prevents cash crisis when reality matches.
Physical vs Economic Vacancy
Physical vacancy: property unoccupied. Economic vacancy: occupied but income loss (concessions for lease signing, bad debt, eviction time). Market reports show only physical. Pro forma should include both = effective vacancy 7-10%.
Turnover Cost
Tenant turnover = vacancy + cleaning + paint + marketing + leasing commission. Typical turnover cost: 1-2 months rent. 25% annual turnover = effective vacancy increase of 0.5-1% beyond physical.
Eviction Time
Average eviction process: 30-90 days depending on state. Rent loss during eviction can be 3-6 months total. One eviction per 3-5 year tenant cycle = 5-10% effective vacancy from this alone in landlord-unfriendly states.
Last updated May 2026. Sources: NAHB.