Friday, October 28, 2005

Monthly Rent to Price Ratio

Over at The RealEstate Bloggers there is an solid post about the monthly rent to price ratio. Check it out. For the townhouse I live in it is 260 ratio ( 600K / 2,300 ).
Posted by David at 1:46 PM

4 comments:

  1. AnonymousOctober 28, 2005 9:03 PM

    260 is a really high ratio. Ouch, indeed, David!

    I'd say you're getting a good deal on your monthly rent.

    Using the Motley Fool guidelines the house you're currently renting would appraise at about 460K instead of 600K (200 x $2300 - and that's being generous). In other words, the house is overvalued by some 30% 600K/460K = 30.4%

    Is this about right? What have I missed?

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  2. DavidOctober 29, 2005 7:13 PM

    Those number look right. The other thing is my friends and split the large townhouse 4 ways so each of pay on average $600 + Utilities. :-)

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  3. AnonymousOctober 29, 2005 9:44 PM

    Wow! THAT REALLY IS AN AWESOME DEAL!

    Just continue in that vein and keep saving up the difference each month...

    I like it! :-)

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  4. AnonymousOctober 29, 2005 11:58 PM

    I live in D.C. proper. I am an owner/occupant, but rent the basement apt. for $1200/mo. I should be able to get $2500-$3000 for the rest of the house. Market price would be around $800K, so I am right around the magic 200 rule

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