Rental rates in your area

[Ryan Kruger]

Investors,

I am looking at a few single family homes in my area I am interested in buying and holding with the intent to rent. I am still in the analysis portion of my research and so far its looking like a good deal. It is a 4 bed 2.5 bath built in 2004 in fair condition. No major improvements needed. The homeowner is facing foreclosure and the asking price is $295,000. Comparable homes in the neighborhood are in the low 300's.  My issue is that I am struggling to find or determine what I could/should charge for rent. Ive heard the .8%-1.1% of home value estimate for rental rates, but where do I find information on comparable home rents? Ive looked online to see if any comparable homes were up for rent but I haven't found any close by with the same property features. In your experience, where or how could I find reliable rental rates? 

Thanks!

[Jonathan Oh]

@Ryan Kruger Rentometer is a good resource. Zillow also provides a free rent estimate as well. If you become a BP PRO member, you can also use their rent calculator. If possible, use all 3 as a reference and you'll get a pretty good idea. But keep in mind, all these tools are only as accurate as the data they have. If you're investing in areas with lots of rental activity, the estimates are usually pretty spot on. But in more rural communities without a lot activity, the estimates can be all over the place, which is why I always use multiple sources. But even then, you need to use your best judgement. Hope this helps!