Market-rate housing is defined as an apartment that does not have rent restrictions. If you’re a landlord that owns market-rate housing, you’re free to try to rent the space at whatever price you think the market can fetch. Essentially, your units are considered market-rate housing if you’re not restricted by the affordable housing laws in your area. As a landlord, you do not want to be corralled and controlled by the affordable housing laws because your profit margins can be under your control. Learning how to set your prices so that you don’t have to handle long vacancies and other issues is quite the balancing act. To understand how to set your prices, understanding the principles of the supply and demand, as well as the principles of market-rate housing, is essential to properly conducting rental property management that remains profitable.  

Market-Rate Housing Management

Understanding the rental market begins with the idea that you cannot just inflate prices. If you’re not constantly comparing your rates and amenities to other multi-family properties in your area, you’re at a disadvantage and you could suffer long-term vacancies. As an example, if two-bedroom apartments in your part of town typically cost $1800 per month, you could not try and charge $2800 for a similar property. Navigating the market at this time, however, is easier and more profitable than it once was for several reasons including the main advantage of being a landlord at this point in time is the extremely high demand for rental properties.

Generational Expectations

The millennial generation is currently crippled by astronomical student loans and limited earning potentials, combined with ever-climbing costs of living. For these reasons, Millennials are renting longer than their parents and are actively avoiding buying real estate. This phenomenon is expected to increase in relation to the newest tax bill, as the new laws disincentivize purchasing real estate even more. In combination with the Millenial’s preference for renting, Baby Boomers are getting older and downsizing to rentals instead of owning large homes that they can no longer manage. In other words, the demand cannot currently meet the supply available.


A new trend is sweeping the nation: gentrification. It’s not necessarily just beautifying a scummy area. It’s raising the interest in a certain area to increase that local economy. It starts by creating desirable neighborhoods that people will pay more to live in because it’s surrounded by things that people want to be near. You’ll find that people who have quite a bit of money to spend on rent will spend it living in a neighborhood that they find desirable based off of the restaurants nearby and the amenities included. That means that rent in these recently gentrified areas will suddenly start to go up due to the supply of rentable units going down.

What Will Affect Your Market-Rate

Setting your rental pricing will be tricky. However, if you use the safe guidelines that most people are using, you should be able to manage. It’s much like trying to find a place to rent or buy yourself, in that the same determining factors will predict your strategy. When comparing other properties to yours, you’ll want to start by looking at the number of bedrooms. This translates to how many people will be able to live in your unit. This could potentially translate to an increase in price. For example, if you’re renting a four-bedroom unit, that means four people could live in that house and pay a reasonable rent each. If your area has limits on how many unrelated people live in a single unit, that will have to be adjusted. However, if not, you could easily charge $2600 for a four bedroom because that translates to around $650 per renter.   


The next factor to compare is your utilities, like electricity, internet, gas and water, and whether or not you intend to include those in the monthly renting rate. Additionally, you should consider what other pet policies in your neighborhood look like, and whether or not you feel like dealing with pet damage, as well as including additional storage, and amenities like a pool, laundry facility, and recreation room. A factor that’s recently been considered a top priority for many renters is if your property has a certain walkability. This is defined as the unit’s proximity to stores, restaurants and other things that tenants will enjoy.

Contact DNS Property Management:

Together, we can help you navigate pricing, your profit margins, and so much more. If you’re interested in making your property management duties much more flexible, reach out to DNS Property Management. With years of experience under our belts, we’re totally prepared to handle whatever the tenants or the market throws your way. Be sure to watch our blog for articles covering tenant screening, the benefits of property management and being a great landlord.