Rent to Value (RTV, RTP)
Last Updated: October 31, 2019A rate of return of a rental vehicle based on comparing the monthly gross rent to the purchase price or market value.
The rent to value ratio is used by the common 2% Rule.
How Is It Calculated?
At Purchase:
Rent to Value = Monthly Gross Rent / Purchase Price
Subsequent Years:
Rent to Value = Monthly Gross Rent / Market Value