Why are some properties rent higher even though they are cheaper

[Samuel Chua]

I was wondering why a property of $70k can rent for $850 while a property of $85k also rents for $850 assuming they both are fully rehabbed. It would be amazing if someone could enlighten me on this. Thanks!

[Kyle J.]

@Samuel Chua Rents aren’t based on the price of the property. The buyer of that $70k property could have just negotiated a better sales price than the buyer of the $85k property, but if they’re truly comparable properties that wouldn’t have any effect on the rent they can charge. 

Fair market rent for a property is based on things like number of bedrooms and baths, size of the property, condition of the property, amenities, desirability of the location, etc.