What's a Realistic Vacancy Rate? (It's Higher Than You Think)

The standard '5% vacancy' assumption comes from steady-state Class-A markets in low-turnover years. Real-world vacancy averages 8–10% across most U.S. rental markets when you include turn costs and listing time.

For B/C-class properties or markets with high churn (Las Vegas, Phoenix, Austin), underwrite 10–12% vacancy plus 3–4 weeks of make-ready downtime per turn.

The biggest vacancy lever is tenant quality at placement — not pricing. Tighten screening and accept slower placement; the math wins.