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Business Definition for: market rent
Dictionary of Business Terms
market rent

rent a comparable unit would command if offered in the competitive market.

See also economic rent , contract rent
Dictionary of Real Estate Terms
market rent

the rent that a comparable unit would command if offered in the competitive market. Contrast with contract rent .

Example: Long rents an apartment to Towns for $900 per month. Similar units are renting for $950 per month. The apartment's market rent is $950 per month.

Related Terms:
economic rent

Appraisal: market rent. See also contract rent.
Economics: cost commanded by a factor that is unique or inelastic in supply. An example is the portion of rental income attributable to land, since the land will exist no matter what the rental rate. In this context, economic rent carries a connotation of being "unearned" by the owner.

contract rent

amount of rent that has been set forth in a contract. Contrast with economic rent.

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 Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
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