Comparable Market Analysis for Rental Properties

A comparable market analysis (CMA) for rental properties compares your unit to similar nearby rentals to determine accurate market rent: the price you can actually charge without extended vacancy or leaving money on the table.

Why Rental CMAs Matter

Set rent too high: your property sits vacant for 45 days while you "test the market." One month vacancy on a $1,800 rental costs $1,800, more than a year of the $100 premium you were chasing.

Set rent too low: you fill the unit fast but collect $150 less than market every month for 12-24 months. That's $1,800-3,600 in lost income, and the drag on your cash-on-cash return compounds across your portfolio.

A proper CMA eliminates guesswork. You know what tenants actually pay for similar properties, so you price competitively from day one.

What Makes a Good Rental Comp

Not every nearby rental is a valid comp. Match these criteria:

1. Location (Most Important)

Ideal: Same neighborhood, same school zone, within 0.5 miles

Acceptable: Adjacent neighborhood, similar demographics, within 1 mile

Avoid: Different school district, different neighborhood character, different crime profile

A $2,000/month rental in the good school district doesn't comp a similar property across the boundary line in a weaker district. School zones create hard rent boundaries.

2. Property Type

Compare like to like:

Single-family to single-family
Townhouse to townhouse
Garden apartment to garden apartment
High-rise to high-rise

A 3-bed townhouse doesn't comp a 3-bed detached house, even at the same square footage. Different tenant pools pay different premiums.

3. Bedrooms and Bathrooms

Match bed/bath count exactly. A 3-bed/2-bath comps other 3/2s. Don't average a 2-bed and a 4-bed to estimate your 3-bed; the math doesn't work that way.

4. Square Footage

Stay within 15-20% of your property's size. A 2,400 sq ft home with a 1,500 sq ft comp isn't valid. Tenants paying for space expect proportional pricing.

5. Condition and Updates

A renovated 2019 kitchen commands $100-200/month premium over 1995 laminate. Factor condition into your comp selection or adjust accordingly.

6. Amenities

Account for differences:

Garage vs. street parking: $75-150/month difference
In-unit laundry vs. none: $50-100/month
Central AC vs. window units: $50-75/month
Fenced yard vs. open: $50-100/month

How to Pull Rental Comps

Step 1: Search Active Listings

Start with currently listed rentals: what's on the market right now.

Sources:

Zillow Rentals
Apartments.com
Realtor.com rentals
Facebook Marketplace
Craigslist (still active in many markets)

Pull 5-10 properties matching your criteria within 1 mile. Note asking rent, days on market, and included amenities.

Caveat: Listed rents are asking prices, not achieved rents. Properties sitting 30+ days are probably overpriced.

Step 2: Find Recently Rented Comps

What actually rented tells you more than what's currently listed.

Sources:

Rentometer (aggregates lease data)
Zillow "price history" on rental listings
Local property management companies (ask what similar units rented for)
Your own network (other landlords in the area)

Look for properties that leased within the last 90 days. Older data may not reflect current market conditions.

Step 3: Adjust for Differences

Your property won't perfectly match every comp. Adjust:

Example:

Comp: 3-bed/2-bath, 1,400 sq ft, no garage, rented for $1,650

Your property: 3-bed/2-bath, 1,500 sq ft, 2-car garage, similar condition

Adjustments:

Garage: +$125
100 sq ft larger: +$25
Adjusted value: $1,800

Step 4: Find the Range and Set Price

Feed your adjusted comp data into a rental property calculator to see the cash flow impact at different price points. After adjusting 5-8 comps, you'll see a range. Usually $150-250 spread.

Pricing strategy:

Price at median: Balanced approach, typical 2-3 week fill time
Price at 25th percentile: Fill faster, accept lower rent
Price at 75th percentile: Test premium, accept potential vacancy

I typically price at or slightly below median for vacant units (vacancy cost is real) and at 75th percentile for existing tenants at renewal (they have switching costs).

CMA Example: 3-Bed SFR in Midtown

Subject property: 3-bed/2-bath, 1,550 sq ft, 2-car garage, updated kitchen, central AC, good school zone

Analysis:

Adjusted range: $1,825 - $1,900
Median: $1,875
Recommendation: List at $1,875, accept $1,825 if needed

Ongoing Rent Monitoring

A CMA isn't a one-time exercise. Markets move.

I pull fresh comps every 6 months and before every lease renewal as part of managing my rental properties. Markets in my portfolio shifted 5-12% in 2023 alone. Landlords who didn't track left thousands on the table.

Operator monitors your rents against live market comps automatically. When comparable rents in your zip code jump 8%, you know within weeks, not at lease renewal when you've already lost months of upside.

Common CMA Mistakes

Using only listing sites. Active listings show asking rents, which skew high. Stale listings sat because they're overpriced. Balance with recently rented data.

Ignoring condition differences. A comp with granite counters and stainless appliances doesn't match your property with laminate and white appliances. Adjust or find better comps.

Pulling from too wide an area. Neighborhoods have micro-markets. Two miles away might be a different rent tier. Stick to 0.5-1 mile unless your market is very thin.

Using one comp. One property proves nothing. Use 5-8 for statistical validity. One outlier shouldn't set your price.

FAQ

What is a comparable market analysis for rentals?

A comparable market analysis (CMA) for rentals compares your property to similar nearby rentals to determine accurate market rent. A proper CMA includes 5-8 comparable properties with matching bed/bath counts, similar square footage, and comparable amenities, adjusted for differences to estimate what your specific property should rent for.

How do I find rental comps?

Find rental comps using Zillow Rentals, Apartments.com, Rentometer, and Facebook Marketplace. Pull active listings (what's available now) and recently rented properties (what actually leased in the past 90 days). Focus on properties within 0.5-1 mile with matching bedroom/bathroom counts and similar condition.

How often should I analyze rental market comps?

Analyze rental comps every 6 months for ongoing monitoring and always before setting rent on a vacancy or renewal. Markets can shift 5-15% annually. Landlords who don't track comps regularly either overprice and suffer vacancy or underprice and lose income. Use automated monitoring tools to track market changes between formal analyses.