Occupancy Rate

Definition: The percentage of a property's rental units or space that is occupied, using a stated measurement and period.

Example

If 46 of 50 comparable rental units are occupied, the physical occupancy rate is 46 ÷ 50 = 92%.

Keep the distinction clear

Physical occupancy differs from economic occupancy based on actual income. An occupied unit can still produce reduced or unpaid rent.

Related terms

Vacancy Rate · Vacancy and Collection Losses · Effective Gross Income (EGI)

Keep studying

Vacancy and Collection Loss: Calculate EGI and NOI

References: FREC Course II syllabus: investment concepts

Pronunciation (US): AH-kyuh-pun-see RAYT (capitals show stress)

Pronunciation reference: Merriam-Webster