What is another name for market rent?

Market rent refers to the rental income that a property could generate in the open market, reflecting the interplay of supply and demand for similar properties in a given area. The term "economic rent" encapsulates this concept, as it specifically defines the income that a property owner can expect to receive based on current market conditions. Economic rent is derived from the market's valuation of the property, taking into consideration its location, features, and the prevailing rates for comparable rental properties.

This understanding of economic rent aligns closely with market rent because both terms emphasize the market’s role in determining the value of rental property. Economic rent can also account for any surplus that may exist when the rents are higher than the associated costs of providing the rental property, demonstrating its direct connection to the concepts involved in determining market rent.

The other options, while related to property value and rents, do not precisely match the definition of market rent. Market price refers to the amount that buyers are willing to pay for a property in a sale context, rather than the rental aspect. Fair rent often reflects a subjective assessment of what constitutes a reasonable rent for a property, which may not necessarily align with current market conditions. Investment rent suggests a return on investment in property and often incorporates factors beyond just the