A rental market analysis (RMA) helps you assess the investment potential of a property within a target area. When conducting a rental analysis, you follow a simple mathematical equation:

• Figure out the adjusted price per square foot of comparable properties in the area.

• Multiply by the square feet of properties for sale. 

How does this simple equation help? It helps you determine if the average rent in the area is higher than the average price of any available properties. If so, then the market is favorable.