Vacancy is one of the biggest drags on rental property returns. This calculator shows the true cost of empty units in Montana — pre-filled with Montana average rents ($1,706/mo) and vacancy rate (4.2%).
Avg Cap Rate
5%
Median Price
$523K
Property Tax
0.59%
Vacancy Rate
4.2%
Local Factors
Total Vacancy Cost
$4,939
$412/mo lost
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.
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.
What vacancy rate should you use? Most lenders underwrite 5-8% for stabilized multifamily. Montana averages around 4.2%. Your actual rate depends on local market conditions, property condition, and management quality.
Keep running the numbers
Vacancy eats into everything in Montana. See the full impact on your returns.
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