Vacancy Rate Law and Legal Definition

The vacancy rate is the value of all units or space that is unoccupied or not rented. It is calculated as the percentage of all available units in a rental property, such as a hotel or apartment complex, that are vacant or unoccupied at a particular time. On a pro-forma income statement, a projected vacancy rate is used to estimate the vacancy allowance, which is deducted from potential gross income to derive effective gross income.