What is an acceptable break-even occupancy?

Below 80% is generally considered healthy, meaning you can tolerate up to 20% vacancy. Above 90% indicates thin margin and high risk.

How do operating expenses affect break-even?

Higher expense ratios push break-even occupancy up. A property with 50% OER needs higher occupancy to service debt than a lean 35% OER property.

How to lower break-even occupancy?

Reduce operating expenses, increase rents, refinance to lower debt service, or improve property management efficiency.

Break-Even Occupancy Rate Calculator

Calculate minimum occupancy needed to cover all operating expenses and debt service. Break-Even Occ = (Operating Expenses + Debt Service) / Gross Potential Rent.

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Frequently Asked Questions

What is an acceptable break-even occupancy?

How do operating expenses affect break-even?

How to lower break-even occupancy?