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Vacancy Loss Calculator

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Illinois Vacancy Loss Calculator

Vacancy is one of the biggest drags on rental property returns. This calculator shows the true cost of empty units in Illinois — pre-filled with Illinois average rents ($2,027/mo) and vacancy rate (6.5%).

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Property Income(Illinois defaults)

Vacancy Assumptions(Illinois defaults)

Operating Expenses

Illinois Market Context

Avg Cap Rate

6.5%

Median Price

$286K

Property Tax

1.79%

Vacancy Rate

6.5%

Local Factors

  • -Second-highest property tax rate in the nation significantly impacts investor returns
  • -Chicago provides strong rental demand but has complex landlord-tenant regulations
  • -Population outmigration trend creates risk in downstate markets

Sources

World Population Review – Median Home PriceFL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance RatesiPropertyManagement – Vacancy Rates

Total Vacancy Cost

$7,824

$652/mo lost

Healthy
Gross Potential Income$97,296
Lost Rent (Vacancy)−$6,324
Turnover Costs−$1,500
Effective Gross Income$90,972
NOI (with vacancy)$47,472
NOI (0% vacancy)$55,296
Vacant Unit-Months/yr3.1
Vacancy Impact on NOI14.1%
Vacancy Cost$7,824
Net Income (after vacancy)$47,472
Vacancy Loss$6,324
Turnover Costs$1,500
Operating Expenses$42,000

What does this mean?

A 3–7% vacancy rate is the sweet spot for most rental markets. You're maintaining strong occupancy while likely pricing rents at market rate. Most lenders underwrite in this range.

Understanding Vacancy Loss

Vacancy loss is the income you don't collect when units sit empty between tenants. It's the gap between what a property could earn at full occupancy (Gross Potential Rent) and what it actually collects.

Vacancy Loss = Gross Potential Rent x Vacancy Rate

What vacancy rate should you use? Most lenders underwrite 5-8% for stabilized multifamily. Illinois averages around 6.5%. Your actual rate depends on local market conditions, property condition, and management quality.

Keep running the numbers

One calculator rarely tells the whole story.

Vacancy eats into everything in Illinois. See the full impact on your returns.

NOI

Calculate Net Operating Income — the foundation of commercial real estate valuation.

Calculate

Break-Even Occupancy

Find the minimum occupancy rate needed to cover all expenses.

Calculate

Rental Yield

Compare gross and net rental yields across properties.

Calculate

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