Gross Potential Rent (GPR)
Also called: GPR, Gross scheduled rent, GSR
Gross potential rent is the total annual rent a property would collect if every unit were occupied at full market rent for the entire year, with no vacancy, concessions, or delinquency.
GPR is the theoretical ceiling at the top of the income statement. Every subsequent line reduces it toward what is actually collected, which is why the structure of an income statement is sometimes described as walking GPR down to NOI.
The critical ambiguity is whether GPR is stated at market rent or at in-place lease rent. Stated at market, the gap between GPR and in-place rent becomes loss to lease and represents recapturable upside. Stated at in-place rent, that upside is invisible. Both conventions exist in the wild, so confirm which one a statement uses before comparing anything.
How to calculate gross potential rent
GPR = Σ (Market Rent per Unit × 12) across all unitsCalculate gross potential rent
Related terms
- Effective Gross Income (EGI)
Effective gross income is gross potential rent less vacancy, concessions, and credit loss, plus other income such as parking, pet fees, and utility reimbursements.
- Loss to Lease
Loss to lease is the difference between a property's market rent and the actual in-place rent on its current leases, representing income the property is contractually unable to collect until those leases roll.
- Economic Vacancy
Economic vacancy is the total percentage of gross potential rent not actually collected, including physical vacancy plus concessions, delinquency, non-revenue units, and loss to lease.
- Rent Roll
A rent roll is a unit-by-unit schedule of a property's leases showing unit type, square footage, current rent, market rent, lease start and expiration dates, and occupancy status.