Fair Market Rent

[Aaron Nelson]

Hello fellow BP investors,

I'm a newbie looking to get started in RE investing. I'm interested in buying and holding SFRs and/or multifamily properties in Western Washington. 

I've done some research on average monthly rent values on websites like Zillow, huduser.gov, Craigslist and rent.com but realize there are limitations to these websites and am interested in learning from some experienced investors. I know rent prices can vary widely within a city depending upon type of property (3br/2ba SFR vs multifamily home), neighborhood, quality and square footage.

With this in mind, would anyone mind sharing how they determine fair market rent for an SFRs or multifamily properties in a particular area (eg, "Northern Tacoma" or "Bayside/Riverside in Everett")? I suspect this is more of an art than a science and would love to hear some different ideas. 

Often when I search Craigslist to verify rent prices, I'll see five different sized houses in Auburn (for example) located in 4 different neighborhoods, each of a different quality and priced anywhere between $1600-$2200...so when I am (trying) to evaluate a property, for NOI, COC ROI, etc., I get an extremely wide range based on which number I use. I also wonder if these asking prices are "reasonable" or if the reason I am seeing them still listed on Craigslist is because they are too high and can't find a tenant.

Thanks for your feedback!