Research Finds 93 Cents of Every Rent Dollar Keep Apartments Running

2 minute read

ARLINGTON, VA | September 26, 2023 – Updated research from the National Apartment Association (NAA) reveals that nationally, on average 93 cents of every rent dollar cover essential operational expenses and support local communities. In addition to national data, NAA’s research now provides insights for 37 states plus D.C.

“Just like every sector of the economy and countless American households, the rental housing industry has grappled with escalating costs in the face of record inflation,” said Bob Pinnegar, NAA President and CEO. “Rental housing is a narrow margin industry that is often mischaracterized, but the data shows the truth – 93 cents of every rent dollar keep apartments running and support the local community. As we continue to contemplate housing affordability challenges, it is vital to keep these necessary expenses in mind.”

The research uses new data derived from federally mortgaged properties, provided in part by Thirty Capital Performance Group, to expand and improve upon NAA’s previous Dollar of Rent analysis. Amongst the top expenses is the property’s mortgage which accounts for 46 cents. Further, 27 cents cover operating expenses like maintenance, insurance and utilities. And importantly, 11 cents go back into the local community through property taxes, funding schools, emergency services and other critical local needs.

"Our research helps bridge the gap between data and informed policymaking,” said Leah Cuffy, NAA Director of Advocacy Research. "A nuanced understanding of the dollar of rent can help avoid policies that inadvertently squeeze rental housing providers and, in turn, jeopardize their residents, employees and communities."

The full dollar breakdown also includes costs like payroll and capital expenditures reserves, and can be found here.


About NAA
The National Apartment Association (NAA) serves as the leading voice and preeminent resource through advocacy, education, and collaboration on behalf of the rental housing industry. As a federation of 141 state, local and global affiliates, NAA encompasses over 92,000 members representing more than 11 million apartment homes globally. NAA believes that rental housing is a valuable partner in every community that emphasizes integrity, accountability, collaboration, community responsibility, inclusivity and innovation. To learn more, visit NAA thanks its Strategic Partners: The Home Depot Pro & HD Supply, Lowe’s Pro Supply and Yardi.