Effective Rent

Effective Rental Rate (As Opposed to Market Rent)

Effective Rent: The actual cost of renting an apartment after all specials and discounts. The effective rent can be calculated on an annual basis or the preferred monthly basis. For example, if a two bedroom apartment is leasing for $1,000 for a 12 month lease term, and the apartment is offering two months free, the effective monthly rent is $833.33.