Projection assumptions
Rent Growth %
Annual rent increase assumption. National average ~3%; high-growth markets 4-6%. Used in 10-year projection.
Why Rent Growth % matters
Rent growth compounds powerfully in long-hold strategies. A property with 4% rent growth vs 2% over 10 years has 22% higher year-10 rent. This is where the appreciation-tier markets win on IRR even with weaker initial cash flow.