How To Do A Rental Market Analysis Like a Pro (With AI Tools)

Ever passed on a property, only to find out months later it became the hottest spot in the neighborhood?

Or maybe you listed a unit, confident in your pricing, only to see your competitor down the street lease theirs faster while attracting better tenants.

That’s the cost of skipping a rental market analysis.

At its heart, a rental market analysis is not just about raising rents, it is about seeing the bigger picture; understanding supply and demand, spotting shifts in occupancy, and learning what makes one property stand out over another.

With the right insights, you can identify opportunities earlier, position your property more effectively, and make smarter investment decisions.

In fact, if you’ve wondered how real estate professionals seem to magically spot the best rental properties, here’s the secret: they don’t guess. They do a thorough rental market analysis.

Think of it as the detective work behind smart real estate investing. 

According to Zillow, the average U.S. rent has gone up more than 30% in the last five years. For real estate professionals, this means every pricing decision, investment, or lease negotiation should be backed by solid market analysis. 

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In this guide, we’ll break down how to do it like a pro, and show you real-life examples that make the numbers tell a story.

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What is a Rental Market Analysis and Why Does it Really Matter?

Imagine you’re about to list a new apartment building. You have a general idea of what rent should be, but you’re not sure if your number is too high and will scare people off, or too low and will leave money on the table. This is where a rental market analysis comes in.

A rental market analysis is simply the process of looking at what’s happening in your area’s rental market to see what similar properties are renting for, how quickly they’re being leased, and what features are attracting tenants.

It means checking things like average rent prices in the neighborhood, how many units are sitting empty, times of the year when demand is higher, and changes happening in the area.

For real estate professionals and property managers, this goes beyond setting the right rent. You want to make smart choices on property upgrades, marketing, and even new investments.

By knowing the true value of a property in its market, you can position it competitively, attract the right tenants, and boost returns without relying on guesswork.

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Rental Market Analysis: The Key Data Points You Should Look At

When you run a rental market analysis, the goal is to get a clear picture of what is happening in your area right now. To do that, you need to focus on a few important pieces of information.

1. Average Rent Prices
   Check what similar properties in your area are renting for. Make sure you compare properties with similar size, features, and location. This will help you set a price that is competitive without leaving money on the table.
   
   
2. Occupancy and Vacancy Rates
   Find out how many rental units in the area are currently occupied versus sitting empty. High vacancy can mean less demand or too much supply, while high occupancy can signal strong demand.
   
   
3. Property Features and Amenities
   See which features are attracting tenants. This could be in-unit laundry, secure parking, modern kitchens, or even pet-friendly policies. These details often make a big difference in rental value.
   
   
4. Neighborhood Trends
   Look at what is happening around the property. Are there new businesses opening? Are schools or public transport improving? Changes like these can raise demand and allow you to charge more in the future.
   
   
5. Seasonal Demand
   Certain times of year see more renters searching for homes. Knowing peak seasons in your area can help you time listings for faster leases and better rates.

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Step-by-Step: How to Do a Rental Market Analysis Like a Pro

Doing a rental market analysis is not complicated once you know what to look for and where to find the information. Here is a straightforward process you can follow.

1. Define the Property You’re Analyzing
   Start with the basics: property type, size, location, number of bedrooms and bathrooms, and any unique features. This will guide your comparisons so you are looking at truly similar rentals.
   
   
2. Research Comparable Properties
   Search for similar rental listings in the same neighborhood or area. Use real estate platforms, local rental listings, and property management websites to collect current asking prices.
   
   
3. Check Occupancy and Demand
   Find out how quickly similar units are being rented. Shorter listing times usually mean higher demand, which can influence your pricing strategy.
   
   
4. Evaluate Amenities and Upgrades
   Compare the features of your property to the competition. If your property has upgrades or amenities that others do not, you may be able to justify a higher rent.
   
   
5. Look at Neighborhood Changes
   Visit the area or use online maps and local news to see if there are new developments, improved infrastructure, or planned projects that could increase rental demand.
   
   
6. Review Historical Trends
   If possible, check rent prices in the area over the past few years. This can help you spot steady growth or seasonal fluctuations.
   
   
7. Put the Data Together
   Create a simple table or spreadsheet with your findings. This makes it easier to compare properties side by side and decide on the best rental rate or investment choice.

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But, does it have to be that stressful?

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Using AI to Make Rental Market Analysis Faster and Smarter

Let’s be real, doing the step-by-step rental market analysis manually feels like a difficult math homework. First, you jot down the property details in a spreadsheet, then you dig through listing sites for comps, note rent prices, track vacancy data, and build your charts and calculations.

It just doesn’t work, and here is why. It takes too long and it’s not 100% accurate, especially if you’re handling several buildings or trying to keep up with fast-moving markets.

This is where an AI tool like Rentana steps in. With Rentana, all that busy work disappears. The platform pulls in real-time public market trends plus your own private rental data and turns it into smart, data-driven insight, just for you.

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Here’s how Rentana helped 29th Street leave the guesswork behind:

Scaling Smart: 29th Street Capital’s Gain with Rentana

29th Street Capital (29SC), a real estate investment firm with a portfolio of over 12,000 apartment units, wanted a better way to manage pricing and boost performance. They started with a review of eight revenue management software options, narrowing it down to two finalists: Rentana’s AI-powered platform and a new system from an established industry player.

The two platforms went head-to-head in a 90-day pilot, and Rentana pulled far ahead. The results: Rentana’s operational speed stood out:

• 21× faster onboarding: New properties live in 1–2 days vs. 3–6 weeks for legacy systems
  
  
• 36× faster support:  5-minute average response time vs. 3 days
  
  
• 125 new features shipped in 90 days, including custom tools for 29SC’s team, while the competitor only delivered one
  
  

“I would recommend Rentana without a doubt,” said Robert Waz, VP at 29th Street Capital. “The UI is miles ahead, we trust their data security, and their fast, insightful and personalized platform gives us a strategic advantage to grow our assets.”

For rental market analysis, Rentana offers the same competitive edge it gave 29SC, delivering real-time insights, accurate pricing recommendations, and the ability to act quickly on market shifts, turning data into higher income and asset value.

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Conclusion on How to do a Rental Market Analysis

In real estate, instincts matter, but data closes the deal. That’s why top-performing agents, investors, and property managers rely on rental market analysis before making any big moves. The difference between a property that sits vacant and one that’s fully leased often comes down to how well you understand the numbers.

A solid rental market analysis gives you that edge, showing you where to price, when to list, and what upgrades will actually pay off.

With Rentana, you can skip the hours of manual research and get clear, AI-powered insights in seconds. It’s like having a full-time analyst on your team, making sure you never miss an opportunity or leave money on the table. 

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Frequently Asked Questions on How to do a Rental Market Analysis

What is a rental market analysis?

A rental market analysis (RMA) is a process real estate investors and landlords use to estimate the rental value of a property. It compares similar rental properties in the same area to determine how much rent can reasonably be charged. The analysis looks at factors like location, property size, amenities, and market demand to help set competitive rent prices.

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How do you do a rental market analysis? (Sample steps)

Here’s a simple way to perform a rental market analysis:

1. Research comparable rentals – Look for similar properties in the same neighborhood (same number of bedrooms, bathrooms, and features).
2. Check average rent prices – Gather data from online listings, property management sites, or local real estate agents.
3. Evaluate location factors – Consider proximity to schools, jobs, public transport, and amenities.
4. Adjust for differences – If your property has extra features (like a garage, pool, or new appliances), adjust the rent slightly higher. If it lacks features, adjust lower.
5. Calculate potential return – Compare estimated rent to your expenses (mortgage, taxes, insurance, maintenance) to ensure positive cash flow.

Example:
If comparable 2-bedroom apartments in your area rent for $1,500, and your property has newer appliances and parking, you might set rent at $1,550–$1,600.

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What is a good GRM for rental property?

GRM stands for Gross Rent Multiplier, a quick way to evaluate rental property value. It is calculated as: Property Price ÷ Annual Gross Rent = GRM

A lower GRM usually means a better investment (you recover your investment faster). A higher GRM can mean lower returns or an overpriced property.

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