Rent Growth %
Editable annual rent-change assumption used in the 10-year projection; it is not a forecast or permitted increase.
Projection assumptions
Why Rent Growth % matters
Different assumptions compound into materially different year-10 results. Use current property and submarket evidence, verify applicable rent rules, and run flat and downside cases.
How to check Rent Growth % before you rely on it
Look at what rents for comparable units in the submarket actually did over the last several years, using listing history or a local property manager's records rather than a national average. Check whether any rent-stabilization or notice rules apply to the property, because they limit the increases you can take. Then run the projection with flat rent and with a decline; if the deal only works with growth, the growth is doing the underwriting.
Related terms
- IRR (Internal Rate of Return)
- Annualized return over the full hold period, including cash flow, principal paydown, appreciation, a…
- Appreciation Rate
- Your editable assumption for annual property-value change.
Where Rent Growth % shows up in TrueCap
Projection assumptions feed the 10-year view: rent and expense growth, appreciation, and the exit costs used in the sale scenarios. They do not change the first-year verdict; they change what the deal looks like over time, which is why they are kept editable and labeled separately from the current-year inputs.