Definition
The percentage of units or space unoccupied over a period, used in underwriting income.
Example
A 6% vacancy assumption reduced gross potential rent by $10,800 annually.
Related terms
Frequently asked questions
What does Vacancy Rate mean in real estate?
The percentage of units or space unoccupied over a period, used in underwriting income.
How is Vacancy Rate used in practice?
A 6% vacancy assumption reduced gross potential rent by $10,800 annually.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.