How Much Money Does a Rental Property Make?
An eight-unit residential rental building typically generates $130,000 to $154,000 per year in collected rent, depending on occupancy and rent level. Revenue Map's rental presets model $1,550 per unit per month at acquisition with 88% occupancy, producing about $10,800 per month, rising to $12,800 at maturity with 95% occupancy and $1,700 rent.
Rental property revenue is the simplest equation in this tool: doors times occupancy times rent, with a small concession allowance on turns. Revenue Map's default eight-unit building collects about $10,800 per month in phase one at 88% occupancy, meaning roughly seven of the eight units are paying rent at any given time. There is no cost of goods: once the tenant is in place, the revenue is pure top line. The question is not whether the building makes money but whether it makes enough to service the mortgage and still leave the owner with positive cash flow.
What makes rental projections different from every other vertical is the absence of a growth lever. A restaurant can raise utilization from 45% to 68%. A rental building starts near 88% and stabilizes at 95%, a difference of less than one unit on an eight-door property. Revenue growth comes almost entirely from rent increases of 3-5% per year, which is why lenders underwrite rental property on cash flow stability rather than growth potential.
Revenue Breakdown
Rental property revenue and cash flow by phase
| Item | Typical range | Notes | Source |
|---|---|---|---|
| Monthly collected rent, phase one (months 1-6) | About $10,800 | 8 units at 88% occupancy, $1,550 per unit, 1% concession allowance | Revenue Map model presets |
| Monthly collected rent, phase two (months 7-24) | About $12,100 | 8 units at 94% occupancy, $1,625 per unit after modest rent increases | Revenue Map model presets |
| Monthly collected rent, maturity (months 25+) | About $12,800 | 8 units at 95% occupancy, $1,700 per unit, near the stabilized ceiling | Revenue Map model presets |
| Monthly operating expenses (no mortgage) | $2,550 to $2,680 | Utilities $450-470, insurance $750-810, property management $1,100-1,200, marketing $200-250, no payroll | Revenue Map model presets |
| Monthly mortgage payment | About $6,290 | $945,000 financed at 7% over 30 years on a $1,350,000 acquisition | Revenue Map model presets |
| Monthly pre-tax cash flow, phase one | About $1,960 | Collected rent minus operating expenses and mortgage; no COGS in rental | Revenue Map model presets |
Sources: Revenue Map model presets (default investment, pricing and funnel assumptions in our industry templates), Revenue Map model templates (vertical research in each financial model), Revenue Map benchmark tables (the thresholds behind our free calculators), and honest industry ranges where our own data is thin. Ranges are planning bands, not guarantees.
What Moves the Number
Occupancy is the only variable that matters quickly
Revenue Map's presets move occupancy from 88% to 95% across three phases, a difference of roughly half a unit on an eight-door building. At 88%, one door is essentially always vacant and producing $0; at 95%, vacancy is a brief event between tenants rather than a standing cost. Each occupied unit adds $1,550 to $1,700 of monthly revenue, so even one persistent vacancy cuts annual income by $18,000 or more.
Rent growth is modest and slow
Revenue Map's presets move rent from $1,550 to $1,700 per unit over the five-year model, roughly 3% per year. On eight units at 95% occupancy, the lift from $1,550 to $1,700 adds about $1,140 per month of collected rent. That growth rate matters because it compounds against relatively flat expenses, slowly widening the gap between revenue and the fixed mortgage payment.
The mortgage absorbs most of the revenue
The $6,290 monthly mortgage payment on a $945,000 loan absorbs roughly 58% of phase-one collected rent and 49% at maturity. Rental property cash flow is thin by design: the owner's return comes partly from cash flow and partly from principal paydown inside the mortgage payment. A building that shows $1,960 per month of cash flow is also building roughly $2,200 per month of equity through principal reduction, but that equity is illiquid until a refinance or sale.
Frequently Asked Questions
How much cash flow does a rental property produce per month?
How much does an 8-unit apartment building make per year?
What is a good cap rate for a rental property?
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