Find the minimum occupancy rate needed to cover all expenses using Illinois market data. It's (Operating Expenses + Debt Service) / Gross Potential Income. Pre-filled with Illinois rents, tax rates, and insurance.
Avg Cap Rate
6.5%
Median Price
$286K
Property Tax
1.79%
Vacancy Rate
6.5%
Local Factors
Break-Even Occupancy
34.9%
Must be occupied Can be vacant
What does this mean?
A break-even below 60% means this property can weather significant vacancy and still cover all costs. That's an extremely resilient deal with a wide margin of safety.
Break-even occupancy is the minimum percentage of a property that must be occupied for rental income to cover all operating expenses and debt service. It's a critical risk metric — the lower the break-even, the more resilient your investment.
Target benchmarks: Most lenders want to see break-even occupancy below 85%. Best-in-class stabilized properties often achieve 65-75%. Above 90% is a red flag in underwriting.
Keep running the numbers
Know your minimum in Illinois. Now see what happens above and below it.