Platform · Glossary
Rent growth.
The percentage change in median rent for a geography year over year. The 3Y intake-form tooltip puts it in context: "Expected annual rent growth used in cashflow and exit projections." The default is a tract-derived estimate; you can override with your own assumption.
Rent growth is the most important forward signal for income property. Rents are what generate yield, and rent trajectory is what compounds over the hold period.
Where 3Y sources it
- ACS gross rent series (B25064) for tract and county-level rent levels
- HUD Fair Market Rent (FMR) for cross-checks at metro level
- Licensed third-party series for higher-frequency updates where available
ACS rent data is reliable but lagged — a 2026 report typically reads 2019–2023 ACS values. 3Y supplements with more frequent series where licensing permits, with sourcing disclosed in each report's data lineage.
Why local rent growth matters more than national
National rent growth headlines are computed across markets that are growing rapidly, contracting, and everything between. The aggregate is dominated by large coastal metros. A property in Birmingham or Toledo lives or dies on local rent growth in those markets, not on the national figure. 3Y reports show local rent growth alongside state and U.S. medians so the comparison is explicit, and rent growth feeds the location score's rental-market category directly.