What is Base Rent in Multifamily?

Base Rent is the scheduled monthly rent a tenant pays only for the right to occupy the apartment home. It excludes all other recurring or one-time charges (utilities reimbursements, parking, pet fees, storage, valet trash, RUBS, concessions, etc.).

How Base Rent is Used

Context	Why Base Rent Matters
Leasing & Marketing	Quoted to prospects as the “starting at” price before add-ons.
Financial Modeling	Forms the foundation of Gross Potential Rent (GPR) in pro formas; lenders and investors look at Base Rent separately from other income to assess pure market rental strength.
Budgeting & Variance Analysis	Property managers track Base Rent vs. Effective Rent to see the impact of concessions and collections.
Comp Surveys	Allows apples-to-apples comparisons between properties without noise from ancillary revenue strategies.

Typical Calculation Flow in Underwriting

Base Rent per Unit × Unit Count
= Gross Potential Base Rent
+ Other Monthly Charges (parking, pets, etc.)
= Gross Potential Rent (GPR)
– Physical & Economic Vacancy
= Effective Gross Income (EGI)

Example

Item	Monthly
Base Rent	$1,600
Parking	$75
Pet Fee	$25
Total Rent Due	$1,700

Base Rent in this lease is $1,600; the other $100 is ancillary income.

Common Misunderstandings

Base Rent ≠ Net Rent – “Net” usually means after concessions or free-rent periods.
Base Rent ≠ Market Rent – Market rent is what a vacant unit could command today; base rent is what the signed lease actually states.
Utilities Pass-Throughs – Even if billed with rent, utility reimbursements are categorized as “other income,” not part of base rent.