How to Calculate Multifamily Metrics
Master the key performance indicators that drive multifamily real estate success. Learn how to calculate each metric, where the data comes from, and why it matters for your portfolio.
Occupancy & Leasing
Physical Occupancy Rate
occupied units ÷ total units
Economic Occupancy Rate
actual revenue ÷ gross potential rent
Pre-Lease Percentage
future leases signed ÷ expiring leases
Renewal Rate
renewed leases ÷ total expirations
Turnover Rate
move-outs ÷ total units
Average Days Vacant
total vacant days ÷ number of vacancies
Lease-Up Velocity
net leases signed ÷ time period
Lead-to-Lease Conversion Rate
leases signed ÷ total leads
Tour-to-Application Conversion Rate
applications ÷ tours conducted
Application Approval Rate
approved apps ÷ total applications
Financial Performance
Average In-Place Rent per Unit
total rent charged ÷ occupied units
Average Market Rent per Unit
market rent ÷ available units
New Lease Trade-Out
new lease rent - prior rent
Renewal Rent Trade-Out
renewed rent - expiring rent
Net Effective Rent
gross rent - concessions ÷ lease term
Loss-to-Lease
market rent - in-place rent
Concessions as % of Potential Rent
total concessions ÷ gross potential rent
Other Income per Unit
total other income ÷ total units
Revenue per Available Unit
total revenue ÷ total units
Gross Potential Rent
market rent × total units
Effective Gross Income
potential rent - vacancies + other income
Operating Performance
Operating Expense per Unit
total operating expenses ÷ total units
Operating Expense Ratio
operating expenses ÷ effective gross income
Net Operating Income (NOI)
effective gross income - operating expenses
NOI Margin
NOI ÷ effective gross income
NOI per Unit
NOI ÷ total units
Maintenance Cost per Unit
total maintenance costs ÷ total units
Turnover Cost per Move-Out
total turnover costs ÷ number of move-outs
Real Estate Taxes per Unit
property taxes ÷ total units
Management Fee as % of EGI
management fees ÷ effective gross income
Investment Metrics
Capitalization Rate (Cap Rate)
NOI ÷ property value
Cash-on-Cash Return
annual cash flow ÷ total cash invested
Debt Service Coverage Ratio (DSCR)
NOI ÷ annual debt service
Equity Multiple
total distributions ÷ total equity invested
Internal Rate of Return (IRR)
discount rate where NPV = 0
Project-Level Levered IRR
IRR on equity cash flows with debt
Unlevered IRR
IRR on property cash flows without debt
Return on Cost
stabilized NOI ÷ total project cost
Spread to Market Cap Rate
going-in cap rate - market cap rate
Financing Metrics
Loan-to-Value Ratio (LTV)
loan amount ÷ property value
Loan-to-Cost Ratio (LTC)
loan amount ÷ total project cost
Debt Yield
NOI ÷ loan amount
Interest-Only Coverage
NOI ÷ interest payments
Fixed-Charge Coverage Ratio (FCCR)
NOI ÷ (debt service + fixed charges)
Break-Even Occupancy
(expenses + debt service) ÷ gross potential rent
Refinance Proceeds
new loan amount - existing loan balance
Average Interest Rate (Portfolio)
weighted avg of all loan rates
Maturity / Refinance Risk Exposure
maturing debt ÷ total portfolio value
Resident Experience
Track These Metrics Automatically
BubbleGum BI calculates and tracks these metrics for you with daily-updated dashboards and automated reporting.
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