Median Gross Rent
Why is this important?
Median gross rent provides information on monthly housing expenses for renters. It includes the contract rent plus estimated monthly utilities and fuels if they are paid by the renter. The median represents the mid-point of monthly rents where half the values are above the median and half below, removing extremely high and extremely low values so that the figure is not distorted. For those who do not own their own home, rent is a necessary expense. The higher a household’s rental expenses, the less is available to spend on their other needs [i]. However, higher median rents can also be indicative of a better home and community. In a popular market, median gross rent may be growing faster than incomes.
[i] “Housing and Neighborhoods.” ET Index. 2017. Web 28 June 2017. <http://www.etindex.org/housing-neighborhoods>.